Executive Summary
This offering includes the adjacent Econolodge (60 keys) and 2 fully leased restuarant buildings. The Best Western is offered as part of a portfolio and the quoted price is the portfolio price. Please see the Econolodge summary on this website. The following summary pertains to the Best Western .
The Best Western compliments the adjacent Econolodge quite well. The retail buildings are included in the offering and are single tenant restaurants, one a 1580 sq ft Subway and the other a 4200 sq.ft. Los Potros Mexican restaurant.. Both are located on pad sites directly in front of the Econolodge.
This award winning Best Western was built in 2 phases, starting in 2005 and with a 62 key expansion in 2013. It is located on one of the busiest NAFTA interstate highways in the country. I-35 connects Mexico to Canada and Blackwell is only 1.5 hours north of Oklahoma City and about one hour south of Wichita, KS. The area is known for energy exploration, Indian casinos, manufacturing and the agricultural business. The downturn in the oil boom has affected the hotels in the region. Of course, if oil prices continue to increase, one would expect that exploration in the region would begin to ramp up again. There are 5 casinos within 20 minutes of Blackwell, making it a nice hub for those that are enjoying the casino circuit. Those are:
- Native Lights Casino
- 7 Clans Casino
- Tonkawa Hotel & Casino
- Osage Casino
- Southwind Casino
The Best Western was built in two phases, with the latest 62 keys built in 2013. The expansion was due to the huge influx of business due to energy expansion and oil exploration in the area. Of course, the downturn in oil prices affected every business in the regional economy. The hotel still produces a respectable top line revenue, and would be perfect for an operator who is able to economize on the labor and other associated variable costs. If the oil business recovers (which it will someday), then one would expect the ability to see increased revenues. Even with the effect of the oil business decline, this partnership continues to maintain the BW at a high level, and it shows in its reviews and scores.
If the oil business comes back and agriculture recovers, which both are likely to do at some point, these deals could turn into very attractive investments.
Additional discount possible for year end sale.
