January 14, 2021 12:17 pm
Many of us in the hotel business are not sad to see 2020 go. 2020 was a challenging year for many, however, trial always brings innovation, coupled with persistence. I am sure most of us had to adjust on the fly, because the suddenness of the pandemic had very little historical context to draw on. At Leisure Real Estate Advisors, we did manage to finish the year fairly strong, with a number of late year closings, including the Microtel Inn & Suites, Independence, KS. This one was interesting, in that it was a court appointed sale, controlled by a receiver appointed by the District Court. The distress of the asset was unrelated to Covid 19, and had occurred well before the pandemic. Even at that, the hotel lending and investment market was feeling the stress of the pandemic, and the buyer did all of the right things in order to get the financing in place. I will be writing a subsequent post on obtaining financing under the current market conditions, so be watching for it. The buyer was from Houston, TX and the lender was a well-known SBA 7 (a) lender. The property was managed by a third-party management company, Sunway Hospitality, LLC.
Property: Microtel Inn & Suites, Independence, KS
Number of Keys: 69
Asking Price: $1,850,000
Buyer: OM SAI LLC
Seller: Laxminayaran Hospitality, LLC, by a court appointed receiver
Questions can be directed to:
Brent Jaynes, Managing Partner
Leisure Real Estate Advisors, LLC
913-499-4731