• 90 Rooms in a 5-Story, Interior Corridor Building currently operated as Best Western Plus.
• The hotel achieved room revenue of $1,247,032 in 2024, offering significant upside potential for new investors. With operational improvements and strategic market positioning, achieving a 100% RevPAR index could yield room revenue of approximately $2 million.
• The property offers a 40% RevPAR upside compared to the comp set, capitalizing on market trends of increasing occupancy, ADR, and RevPAR, with growth projected through 2025.
• Situated in Jonesboro, AR, a regional hub for industries like manufacturing, healthcare, and education. Located 70 miles from Memphis, TN, and 130 miles from Little Rock, AR.
Scenario 1 – Continue as Best Western Plus
• Offered at $5.7M price and minimal PIP with price per key of approx. $64.4K.
o Year 1 Room Revenue approx. $1.51M
o Year 1 Adjusted NOI approx. $575K
Scenario 2 – Conversion to Spark by Hilton
• Offered at $5.7M price + Approx. $2M PIP cost required to convert to Spark by Hilton.
• Property is already approved by Hilton for Spark by Hilton conversion. The Hilton Brand, Hilton Honors Program and Reservation system can enhance a hotel’s prominence in the Market and positively differentiate it from its competitors.
o Approx. $22.2K per key required to convert, based on Hilton’s Estimates
• After Conversion, the hotel is still priced Significantly below the replacement cost.
o Total approx. $85,556 per Key after acquisition and conversion costs.
? Approx. $63.3K per key cost to acquire.
? Approx. $22.2K per key cost to convert.
• Proforma for Spark by Hilton
o Year 1 Room Revenue approx. $2.2M
o Year 1 Adjusted NOI approx. $800K