This very profitable Holiday Inn Express features all of the factors one would look for in a hotel investment, especially for the on-site operator. Besides the performance of the hotel, it also offers the location factors that are attractive to hotel business. That is to say, it displays a high visibility location on I-70 and it is immediately across the street from a 165,000 sq. ft. Caterpillar plant, employing over 300. Moreover, Boonville is an historic river town and is well known for its Isle of Capri casino, which is also a major local employer. It features a 28,000 sq. ft. gaming facility, 900 slots and over 12,000 sq. ft. in meeting & banquet space. It also features a 140 unit hotel, which shows the strength of the hospitality market, in that the Holiday Inn Express still gets gaming reservations from the casino. If that is not enough, Boonville is only 25 miles from Columbia, MO, a very active university town of over 100,000, where the University of MO, Columbia College and Stephens College are all located. Furthermore, Boonville also attracts a number of visitors to the Budweiser Clydesdales of Warm Springs Ranch, (April through Oct). The 224 mile Katy trail, which is a hiking & bike trail that follows the Missouri River is also a major attraction throughout mid-Missouri.
The hotel shows very well as it was renovated under a PIP in 2011, costing over $500K. There is an existing PIP that will apply to a new owner and it mirrors the latest IHG Formula Blue PIPs. That is, it is staged based on the date of last PIP renovation. In any event, the hotel shows well, and it rates well with the online services. As a result, it was granted the TripAdvisor Certificate of Excellence for 2014. The curb appeal of the hotel also provides a pleasant sense of arrival, based on the different depths of elevation in the front view.
Generally, it is unusual to see a HIEX offered for 3X room revenue or less, and this one actually is. The PIP is not too onerous and it will make the visual impression more open when the lobby and breakfast are renovated. We think you will be impressed with the condition and care taken with this property, as well as the cash flow.