We don’t see these very often…….that is, a 10 year old Holiday Inn Express priced less than $67K per key.   Even if one were to spend $20K per key on the Formula Blue PIP, the total cost of the project would still be 20% less than a new build.     The exterior lines are attractive, so most of the PIP expense will go to the interior were the guest will enjoy them.  A new Starbucks is being built on the pad site near the entrance to the hotel.

Executive Summary

Leisure Real Estate Advisors is pleased to offer for sale this Holiday Inn Express & Suites, located in the Capitol City of Topeka, KS.   It is well positioned just west of NW Topeka Blvd on busy Hwy 24.  NW Topeka Blvd is the direct connection to downtown Topeka, and to the state government, the Capitol grounds, the Statehouse, and Kansas Expocentre.   Opened in 2010, it is rare to find a 10 year old hotel priced at 60% of replacement.   The 81 key Express does have a history of favorable performance, and excellent profitability, but is in need of a Formula Blue PIP.   Even with spending $20K per key on the PIP improvements, the completely renovated hotel would still be 20% less than new build cost.

Topeka, with a county population of nearly 180,000, is known for its diverse economy related to the State Capital and the state government offices.  However, it is also known for its manufacturing, medical, insurance, transportation, sports and banking/financial sectors including quite a number of international companies.  It has historically been a strong hospitality market and the underlying business fundamentals are there to sustain it.  The property is located about 1 hour from Kansas City International Airport.  Major manufacturing facilities are also nearby, including Hill’s Pet Products, a JM Smuckers production plant, and one of the largest Goodyear plants in the world.

Notable Local Employers:

  • State of Kansas (6,000 local employees)
  • Capitol Federal Savings
  • Frito Lay Company
  • Goodyear Tire & Rubber (one of the 4 largest plants in the world)
  • JM Smuckers
  • Hill’s Pet Nutrition
  • Security Benefit Life Insurance
  • Washburn University (4 year university including School of Law)
  • Westar Energy
  • Blue Cross Blue Shield of KS
  • BNSF Railway

Other demand generators include:

  • Brown v. Board of Education historic site
  • Kansas Expocentre
  • Topeka Performing Arts Center
  • Prairie Band Casino
  • Topeka Zoo
  • Combat Air Museum

 

Property Details

Address
601 NW US Highway 24, Topeka, KS 66208
Price
$5,400,000 
Rooms
81 with 41 Suites 
Price Per Key
$66,667 
Property Type
Limited Service - Highway 
Revenue
Call or email for CA 
Website
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Hotel Description

  • Built 2010
  • 81 keys
  • 41 Executive Suites of various types
  • Offered at $66,667 per key, 40% less than a new build
  • Attractive exterior lines
  • Growing area with newer Dillon’s and Walmart Super Center nearby
  • Goodyear, Hill’s Pet, JM Smuckers manufacturing nearby
  • Fitness Center
  • Indoor Pool
  • Meeting Room (600′)
  • New Starbucks being built in front of hotel.

Contact a Broker

Brent Jaynes Headshot

Brent Jaynes

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