This 95 key concrete and block building will serve as a sold foundation for the new flag and the new operator. The property is located on busy Hwy 50 in the south edge of the Hutchinson metro, on a growing interchange, including a newer LOVE’s travel plaza. As an REO (lender owned) property, the lender does not wish to be in the hotel ownership business and is motivated to create a deal. The property was previously a Motel 6, and was converted to Rodeway in late Dec 2018, which has provided access to the Choice Hotel reservation system and at a reasonable cost. However, if one were to re-position the hotel, other flags are available, and the Owner has received PIPs for a Quality Inn and a SureStay conversion. Another consideration would be to reduce the room count in the new franchise agreement by reducing the room count and lowering the cost of renovation.
Due to the foreclosure, the financial records on the hotel are incomplete prior to 2019. There is appears to be considerable upside to the deal, even if one were to bring the property to ”even” with its compset. The Rodeway operates 25 occupancy points under its compset, and substantially below in ADR and RevPar.
The hotel was originally built as a full service hotel, with restaurant, a full bar and a meeting room. Those have been closed for a period of years, based on the limited service nature of the recent flags. However, these areas do offer additional space or could be refitted for lease. There appears to be a need, locally, for a solid F&B operator.
Hutchinson has historically been a strong hospitality town, and it appears that with the right re-flag, renovation, and re-position, this property could reclaim its position in the compset. The following are examples of the attractions that create demand:
- Cosmophere – one of the most complete space museums in the country
- Strataca – formerly the Underground Salt Museum, Carey Salt
- National JuCo basketball tournament
- Annual KS State Fair
Notable area businesses are:
- Hutchinson Regional Healthcare
- Siemens Wind Power
- Lowen Corporation
- Collins Bus Corporation