Overview
HREC Investment Advisors is pleased to present the opportunity to acquire fee simple interest in the 77-room MainStay Suites St. Robert – Fort Leonard Wood, located at 227 Saint Robert Blvd., St. Robert, MO 65584 (sometimes referred to as “Hotel” or “Property”).
Strategically positioned between Springfield and St. Louis, in close proximity to Fort Leonard Wood, the Hotel is in an economically stable location with diverse demand generators. Military stability aside, which generates a consistent baseline occupancy for the property, demand from local attractions, roadway travelers, nearby health centers, and events on Fort Leonard Wood drive significant peak demand periods that are leverageable by the Hotel.
Investment Highlights
Consistently Strong performance
The Property generated nearly $2.0 million in revenue in the latest TTM while consistently maintaining strong NOI flow-throughs and ranking highly among its STR competitive set in RevPAR penetration (+160% in the latest TTM). A new investor can leverage ongoing cost-control initiatives to sustain high cash flow and achieve an attractive return on investment.
Minimal PIP Requirement
With the completion of certain PIP items estimated at $1,000,000, the Buyer has the opportunity to increase rate and continue the excellent penetration the Property is experiencing. It is anticipated the PIP items can be completed over a 2-3 year period.
Attractive Branded Extended-Stay Segment
Extended stay hotels present a lower-risk investment due to their operational efficiencies, consistently high occupancy rates, and stable revenue streams. Additionally, affiliation with the Choice Hotels system enhances the Property’s competitive positioning by leveraging strong brand recognition, a global distribution platform, and a robust loyalty program that consistently drives room nights and supports revenue growth.
Military Market
Located near Fort Leonard Wood, the Hotel benefits from the economic stability attributed to military adjacent areas, receiving a baseline level of constant extended-stay demand alongside strong peak days not seen in other ancillary markets.
No New Supply
No hotels are currently proposed, in final planning, or under construction within a 20-mile radius of the MainStay Suites, minimizing competitive pressure and protecting the strong in-place occupancy and rate.
Offered Well Below Replacement Cost
The national average cost of building a Hotel has increased significantly in the past few years. Given the size and condition of this Hotel, as well as the increased cost of labor and supplies in today’s market, we can reasonably assume that the construction of this Property would be significantly more than the target selling price of this asset.
Offered Unencumbered by Management
The Property is being offered unencumbered by a management agreement. An investor possesses the opportunity to bring in a new management company or to act as an owner/operator.
Fee Simple Interest
The Property will be offered as fee simple.
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