Property Description
APEX Commercial Real Estate | KW South Valley Keller Williams is pleased to present the sale of the La Quinta Inn and Suites St. George, which is part of Wyndham’s Franchise. The Property, originally opened in 2007 on the south end of the city of St. George. The magnificent facade of St. George continues to impress guests as they first glance at the marvelous landscape and beautiful red rocks.
OCCUPANCY VALUE ADD
The La Quinta performs exceptionally well, however there is some value add opportunity because the current owners do not target their occupancy percentage when on average it is around 70%. Lowering the ADR could potentially capture 10%-12% more occupancy and drive the gross room revenue up.
VERY STRONG CURRENT REVENUE AND CASH FLOW PLUS FUTURE UPSIDE
POTENTIAL
The La Quinta performs exceptionally well, with effective cost controls in place by current ownership. In 2019, the hotel achieved over $2.6 million in total revenues, driving 10%-20% of this revenue to the bottom line, after the deduction of management fees and reserves.
GENERAL MANAGER RETENTION
The hotel is ideally offered unencumbered by management, however speaking with the general manager, he is willing to stay aboard and continue to run the hotel, thus providing a buyer with full optionality, including new management or retaining current management and several possible brand conversion opportunities to increase revenue and reservation delivery.
COST OF PROPERTY IMPROVEMENT PLAN
The La Quinta can be acquired below replacement cost, however transfer PIP running anywhere between $700k-$800k can make a difference, that is why we have spoken with lenders and they feel very confident that they can finance the PIP as well.
HIGH VISIBILITY FREEWAY LOCATION
The La Quinta boasts an excellent “Freeway” location, close to the many restaurants, shops and outdoor activities. Located directly north off of Exit 4 in St. George.
