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Successful Franchise Hotel For Sale

961
Cumberland County, Pennsylvania, United States
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Asking PriceUndisclosed
Revenue$1,796,691 Established1989
Cash Flow$441,315 Employees21 full-time
FF&E$1,850,000* FranchiseNo
Inventory$1,500* RelocatableNo
Real EstateUndisclosed Home-basedNo
* Included in Asking Price
Profitable highly successful 136 room national franchise hotel minutes from various state highways which serves thousands of yearly travelers. The subject is an existing quality limited-service hotel property containing 136 rooms. The property also contains a small lounge that is operated by ownership on an as needed basis and the amenities include a fitness center and outdoor pool. The improvements were constructed in 1989, the site area consists of 4.45 acres and a legal description of the property is available upon request. The property is in Cumberland County, PA conveniently located near various interstate highways with immediate access to the airport and other county roads. The property consists of a modern fully upgraded service hotel that is operated under a well-known national franchise agreement. The hotel also has a restaurant / lounge, private meeting space, fitness center, with additional back-of-the-house facilities. All the public space, including the restaurant and lounge, guest registration, lobby, sales and administrative offices are located on the first floor. Guestrooms are located throughout the first and second floor of the guestroom wing of the hotel. This facility was constructed in 1989 and has been upgraded during the past years. The restaurant and banquet businesses are owned and operated by the hotel, has been recently upgraded. The business fixed assets has a substantial value, based on equipment and licensing replacement cost and the sale consists of a fully equipped hotel, restaurants, which includes real estate, licensing, including all the necessary equipment to maintain the day to day business operation and a list of assets will be supplied to purchaser upon request. This business has twenty-one full & part time employees who are unaware of the pending sale and fully expected to remain post closing monthly payroll is approximately $25,600.This business location has 136 private parking areas on the site as part of the sale. The business is operational 365 days yearly 24 hours daily. The sale includes all required documentation including a certificate of occupancy from the municipality and the required state or city licenses to conduct its day to day business. The price of this franchise hotel business opportunity has been valued based on the various assets, which includes the real estate, liquor licenses and a multiple of the net yearly income. This transaction is confidential; all viewings are by appointment only and photo may not represent this business opportunity.
Facilities:This franchise hotel is in eastern Pennsylvania, Cumberland County on an active highway with a traffic count of approximately 23,000 vehicles daily. The facility consists of one hundred and thirty-six rooms, 55,000 square feet on 4,45 acres. The property real estate taxes are $56,614 and assessed value is $2,750,000, Zoning Designation C-2, Commercial - General District. Highest and Best Use - As if Vacant Hotel use. The site is zoned C-2, Commercial - General District. Land Area 4.45 acres; 193,842 SF. The facility is in south central Pennsylvania, west of Harrisburg. The county is 545 square miles in size and has a population density of 453 persons per square mile. The County is part of the Harrisburg-Carlisle, PA Metropolitan Statistical Area, hereinafter called the Harrisburg MSA, as defined by the U.S. Office of Management and Budget. The County has an estimated 2016 population of 247,160, which represents an average annual 0.8% increase over the 2010 census of 235,406. Cumberland County added an average of 1,959 residents per year over the 2010-2016 period, and its annual growth rate exceeded the State of Pennsylvania rate of 0.1%. Recent data shows that the County unemployment rate is 3.3% in comparison to a 5.0% rate for PA, a positive sign that is consistent with the fact that the County has outperformed PA in the rate of job growth over the past two years. The County has greater concentrations than PA in the following employment sectors: Trade; Transportation; and Utilities, representing 25.8% of the County payroll employment compared to 20.0% for PA. This sector includes jobs in retail trade, wholesale trade, trucking, warehousing, and electric, gas, and water utilities. The County is more affluent than Pennsylvania and median household income for is $63,732, which is 15.1% greater than the corresponding figure for PA.
Competition:This general area has competitors; however, we are not aware of any hotels that are reportedly in the planning stages. Nonetheless, appraiser has considered the risk of a potential supply increase in our selection of capitalization and discount rates, as well as our stabilized occupancy projection. Sellers has agreed to supply an appropriate non-compete agreement to the new operator. The subject hotel competes in the following segment areas, Economy Chain, Middle Atlantic Region, and Interstate Location. In terms of occupancy, the subject’s competitive segments all showed growth, in line with national trends, subject’s competitive segments all experienced growth in ADR as well.
Growth Potential:With an ongoing and more aggressive marketing plan, improved web site, the business can be further improved. Between 2012 and 2015, the subject averaged above 95% occupancy penetration, or earned over 95% of its fair share of the room nights sold, although it has been decreasing recently. Note that ownership invested over $200,000 in 2015 to replace bedding and change all televisions to flat screens. This should enhance its performance going forward and appraiser’s projection of 93% is in line with historic operations. The United States hotel market experienced a modest recovery in 2010 through 2015, following precipitous drops in all key hotel performance metrics during 2009. In 2010, business travelers returned to the roads and skies to fuel an increase in overall occupancy rates, which drove a rise in revenue per available room. Nationwide occupancy rebounded from an 8.8% decline in 2009 to a 5.4% increase in 2010, followed by increases of 4.3%, 2.5%, 1.5%, 3.6% and 1.9% respectively in 2011, 2012, 2013, 2014 and 2015. The U.S. hotel industry currently posts an occupancy rate of 65.6%, slightly above historical levels.
Training/Support:The seller / owner will remain post closing to supply an appropriate training and transitional period.
Seller Financing:Is available to a qualified buyer with an appropriate down payment.
Sale Reason:The partners/ owners are separating and relocating out of state.
Ad #99856
Seller Reference #HTL112
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Contact This Seller
Ron Cervelli
Regal Consulting Corp.
973-837-0808
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