BACK ON THE MARKET!!  Built in 2017, this new premium branded Hilton Garden Inn features an I-135 location, easy access to top corporate demand generators, many shops and new restaurants as well as the Salina Municipal Airport. An attached 10,000 sq. foot state of the art conference center is included and the partial cost of which will be reimbursed over time through the remaining CID payments, paid back to the owner. The current amount of CID repayment is approximately $4.2 million.  Offered along with the adjacent re-priced Courtyard by Marriott as a portfolio.  Portfolio sale preferred, but owner will consider an individual sale.

Executive Summary

This is an opportunity to purchase a newer premium branded hotel below replacement cost (when considering the CID reimbursements and the cost of the convention center). This beautiful Hilton Garden Inn offers an ideal location just off Highway I-135, a major north-south thoroughfare connecting Wichita (and I-35) to I-70 & then north to I-80.  As a result of these interstates, Salina serves as the industrial, medical, retail, trade and service hub for north central Kansas. The hotel has easy access to many shops and restaurants as well as the Salina Municipal Airport providing service west to Denver International Airport. Wichita, Kansas and Kansas City, Kansas are 95 and 175 miles away, respectively.

The City of Salina is located in north central Kansas, near the geographic center of the contiguous United States. It is the seventh largest city in Kansas with an estimated population of 50,000. The city is the county seat for Saline County, which has an estimated population of 55,000.

Salina enjoys a diverse economy that includes several manufacturing interests both large and small, a strong agricultural economy that supplies local food processors and beverage makers and creates strong demand for industries such as agricultural equipment manufacturing. Kansas is also poised to become a leader in alternative energies, particularly solar and wind.

Kansas State Polytechnic is home to one of only 12 Federal Aviation Administration (FAA) research facilities in the country – is preparing its students for almost any job in the aviation and aeronautics industries with a robust set of programs that include: Unmanned aircraft systems (UAS) flight and operations.

The hotel is the newest and most state of the art in the city. From electronically controlled door locks with guest smartphones, to sensor controlled thermostats which detect body temperature. The modern rooms all include the Garden Sleep System®, microwave and refrigerator.

This property benefits from a unique form of Kansas governmental assistance called Community Improvement District (CID). CID is a real estate economic development tool which can be used to finance public or private facilities, improvements and services within specific boundaries. It allows the owner to recoup approximately $4.5M in costs through an additional tax rebate that is charged to guests (2%) for a period up to 22 years.  The CID reimbursements include revenue from the Hampton Inn and Courtyard, which are owned by the same owner, and allow the CID repayments to be paid back faster.

Guests can enjoy a freshly prepared breakfast and dinner in the Garden Grille restaurant or order a meal from room service or stock up on snacks from the 24-hour Garden Market. The hotel also features a business center, fitness center and an indoor heated pool.

The attached Convention Center is “Class A” and is the most popular space in town. It can accommodate up to 550 guests in over 10,000 square feet. The center has hosted wedding receptions, trade shows, annual meetings and numerous corporate functions- all accretive to the hotel’s revenues.

Notable Demand Generators:

  • Schwan’s Global Supply Chain- Frozen Pizza Manufacturing (2,000 Employees)
  • Excide Technologies- Automotive Battery Manufacturer (800 Employees)
  • Phillips Lighting- Lighting Manufacturer (600 Employees)
  • Solomon Corporation (324 Employees)
  • Great Plains Manufacturing (258 Employees)
  • Eldorado National- Bus Manufacturer (255 Employees)
  • Crestwood, Inc (219 Employees)

This premium branded hotel is being offered as a portfolio with another select service hotel in Salina, the nearby Courtyard by Marriott.

 

Property Details

Address
3320 S 9th, Salina, KS 67401
Price
$14,250,000 
Rooms
97 
Price Per Key
$146,907 w/out CID repayment 
Property Type
Upper mid-scale select service with conference 
Revenue
Call or email for Confidentiality Agreement 
Website
 

Hotel Description

  • Opened Sept 2017
  • 97 keys
  • Attached state of the art Conference Center with 10,000 square feet of meeting space in 6 rooms. Can accommodate up to 550 people for a single event
  • Community Improvement District (CID) allows approximately $4.2M to be rebated to Owner (through sales and franchise taxes) over the next 19 years. Direct NOI impact
  • Anticipated minimal PIP
  •  79% occupancy with $90 RevPAR (Nov 2019)
  • Market leader – 1 of 5 in RevPAR, ADR and Occupancy compared to STR compset
  • Rates 4.5 on TripAdvisor and #1 of 33 hotels
  • Certificate of Excellence 2019
  • Additional F&B revenue from catering the Conference Center
  • Offered below replacement costs, when considering CID reimbursement
  • Offered as a package with the adjacent Courtyard by Marriott. Portfolio sale preferred but will consider one off sale.

Contact a Broker

Brent Jaynes Headshot

Brent Jaynes

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