BANK OWNED. Offered at less than $21K per key. Historically this property has been a steady revenue producer, but fell victim to recent flag change, high debt and market fluctuations. The Motel 6 flag was removed on Nov 30, and the Rodeway Inn flag began in late Dec. The Rodeway franchise provides several short term advantages……1) it is a one year agreement 2) the PIP is modest, and 3) it can be up-flagged to a Quality Inn, without penalty or to another brand without significant liquidated damages. We also have a SureStay PIP if one would prefer the Best Western system.

Executive Summary

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
  • Dillons
  • Tyson
  • Siemens Wind Power
  • Lowen Corporation
  • Collins Bus Corporation

Property Details

Address
11 Des Moines Ave, South Hutchinson, KS 67505
Price
$1,990,000 
Rooms
95 
Price Per Key
$20,947 
Property Type
Limited Service - Highway 
Revenue
Call for details 
Website
 

Hotel Description

  • REO asset
  • Concrete block & steel structure
  • Several flags available or operate as independent
  • Large parcel and ample parking, including truck parking
  • An abundance of usable space, including former restaurant and meeting room
  • Steady revenue history, until recently
  • Interior corridor
  • Indoor pool
  • Growing interchange on Hwy 50, across the street from a new LOVE’s travel plaza

Contact a Broker

Brent Jaynes Headshot

Brent Jaynes

8725 Rosehill Road, Suite 300
Lenexa, KS 66215
Phone: 913-499-4731
Fax: 913-499-4771