Listed at 2.5X Revenue and under $29.5K per key this well maintained independent extended stay property is within walking distance of the State Capitol of Kansas, in downtown Topeka. It is an historic landmark and a perfect fit for the “boutique lifestyle” buyer as well as cash flow hospitality investors.

Executive Summary

The Senate Luxury Suites is a 51 room property located in downtown Topeka, Kansas. The all-suites hotel offers a wide variety of suite types including hot tub suites, kitchenette suites, two-bedroom suites, studio suites and Tempur-Pedic suites.   It was originally built in 1928 as an up-scale apartment building and has become a historic landmark, currently listed on the National Historic Register and the Kansas Historic Register.

Topeka (population 127,000) is 60 miles west of Kansas City, MO and is the capital of Kansas. Major city employers include the State of Kansas (7,949), Stormont-Vail Health Care (4,302), Goodyear Tire (1,577) and Blue Cross Blue Shield (1,294).   Other notable major employers include Hill’s Pet Nutrition, Security Benefit, BNSF, Payless ShoeSource, and Frito-Lay.

The Topeka hotel market continues to thrive with four consecutive years of growth in hotel revenue for the city. Over that time hotel revenue in Topeka increased from $33 million to $37.9 million in 2016.

The property is situated in advantageously close proximity to largest employer in Topeka, the State Capitol (0.2 miles). While it’s safe to say the Capitol contributes to room demand all year long, the impact is most notable when the State Legislature is in session from January through May each year. With its downtown feel and unique architecture, the Senate Suites deserves attention from “lifestyle” investors in addition to traditional hospitality investors.

Also noteworthy to investors is the additional parking income ($8,100 in 2016). Current ownership has an arrangement in place with nearby businesses that allows them to utilize the additional parking lot for employee parking.

Current ownership spares no expense operationally, a fact that surely contributes to hotel’s superior performance; particularly the ADR which was $70 in 2016. In addition to the above average percentage of financial resources dedicated to operations, current ownership has also invested a significant amount in property updates that will benefit future ownership. The absence of franchise fees as well as the typically lower operating costs of the extended stay model suggest that cash flow has not yet met its full potential.

Don’t overlook this one based on its independent status. With its downtown location, $70 ADR, and consistent revenue the Senate Suites is worthy of your consideration.

Property Details

Address
900 SW Tyler, Topeka, KS 66612
Price
$1,500,000 
Rooms
51 
Price Per Key
$29,411 
Property Type
All Suites - Extended Stay 
Revenue
$600,000 
Website
 

Hotel Description

  • 51 suites
  • Listed at 2.5X revenue
  • Excellent location, 0.2 miles from State Capitol
  • High ADR for independent extended stay property
  • Newer key entry
  • Newer granite vanities
  • Newer flat screen TVs
  • Hot tub suites
  • Studio, one &two room suites
  • Kitchenette suites
  • Assorted Tempur-Pedic studio suites
  • Street street reconstruction, which limited access to property for 18 months, has concluded
  • Well maintained
  • Hot breakfast buffet with eggs & waffles
  • Meeting room, which is ideal for government functions as well as weddings.

Contact a Broker

Randal Dent Headshot

Randal Dent

KS
Cell: 573-353-9596
Brent Jaynes Headshot

Brent Jaynes

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