Executive Summary
This offering includes the adjacent Best Western (122 keys) and 2 fully leased restaurant buildings. The Econolodge is offered as part of a portfolio and the quoted price is for the portfolio. Please see the Best Western summary on this website. The following summary pertains to the Econolodge.
The 60 key EconoLodge Blackwell compliments the adjacent Best Western 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 hotel. The EconoLodge features a 2 story entry and spacious lobby, unlike many EconoLodge properties. In addition, it is interior corridor and features an indoor pool and meeting room.
This award winning EconoLodge 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
- Tankawa Hotel & Casino
- Osage Casino
- Southwind Casino
More notable however, is the recent announcement and ground breaking for the Rock & Brews Casino (Gene Simmons of KISS fame) to be built 10 miles north of Blackwell, in partnership with the Kaw Nation. The 78,000 sq. ft. casino will be the largest in the State, and it will offer a 1500 seat event center, luxury retail, and a travel plaza. Mr. Simmons has used his fame to expand his Rock & Brews franchise throughout a number of areas of the country. In addition to the casinos, Blackwell does play a roll in providing some demand generation with its population of 7,000, that is, a 12,000 sq ft events center and Northern Oklahoma College in Tonkawa. The link to the press release for the ground breaking is: http://www.tulsaworld.com/scene/music/rockers-kiss-come-to-kay-county-for-groundbreaking-on-rock/article_7f96f20f-08c0-58e7-8984-387d5c107689.html.
Both of these hotels show well and are pride of ownership properties. 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 might be possible with a year end sale.
