|Address||2102 S. Jeffers St., North Platte NE 69101 (view map)|
|Price Per Key||53,073|
|Property Type||Full Service with significant conference business|
|Revenue||Call for CA|
The Quality Inn & Suites provides a business model that would be very difficult to duplicate and its popularity is proven by its economic success. With approximately $950K in net cash flow (before debt service) the cap rate is well over 13%. Furthermore, at the asking price, the cash on cash return approaches 30% given market loan terms. If a group or meeting planner needs to have a function in western NE, this facility is one of the few choices.
The restaurant and lounge is leased and produces the owner an average of $200K per year in lease income. The geographic market area for the hotel is quite large, which is testimony to its pull factor. Located just off Interstate 80, Exit 177, it is one of the natural stop over points in western Nebraska, with over a 100 mile span to Kearney going east and 220 miles to Cheyenne to the west.
North Platte is thriving town of 25,000 and is the medical and economic hub to western Nebraska. It is also home to the largest railroad (Union Pacific) classification yard in the United States. The regional Great Plains Medical Center, Mid-Plains Community College and several technical schools are also located in North Platte.
While this version of a business model is not as common as a limited service one, it makes plenty of money and has performed consistently over the years. It you are interested in cash flow and a captive business model where the nearest head to head competitor is over 100 miles away, this hotel could be the match.