Overview
HREC Investment Advisors (“HREC IA”) is pleased to offer, to qualified investors, the opportunity to acquire the fee-simple interest in the 188-room Red Roof PLUS+ Washington, DC – Rockville (“Hotel” or “Property”), situated at 16001 Shady Grove Rd, Rockville, MD 20850.
The Red Roof PLUS+ Washington D.C. – Rockville (the “Hotel” or “Property”) presents a compelling opportunity to acquire an 188-room hospitality asset located just minutes from the 266-bed Adventist Healthcare Shady Grove Medical Center, and Montgomery College, which has almost 14,000 students enrolled at the Rockville Campus.
The Property benefits from its location just under two miles from the bustling newly developed Shady Grove Life Science Center, a “mega-campus” for biotech and pharmaceutical companies. The center contains 175,000 SF occupied by multiple tenants, the most notable being AstraZeneca’s cell therapy manufacturing center. The Shady Grove area as a whole has over 120 life sciences companies.
Rockville’s robust economy is anchored by a number of major life sciences facilities, a variety of colleges and universities, corporations, transportation systems, and leisure attractions. Corporations located near Rockville include Marriott, Choice Hotels, Lockheed Martin, Thermo Fisher Scientific, GlaxoSmithKline, and Supernus Pharmaceuticals. The National Cancer Institute and the National Institutes of Health are also located just over a mile from the Property. The Property is also located near a variety of leisure attractions including the Frederick Fairgrounds, the Montgomery County Agricultural Fair, the Rockville Town Center, and Washington D.C.’s attractions like the National Mall.
The Red Roof Plus+ Washington D.C. – Rockville represents an opportunity for an investor to acquire a hotel with a premium location and strong financial performance.
Investment Highlights
Strong In-Place Cash Flows
The Hotel has earned over $4 million in annual revenue from 2023 to 2025. In addition, it earns over 30% NOI consistently year-over-year.
Highly Competitive Asset
The property ranks 1st of 5 within its competitive set in terms of ADR and RevPAR, achieving a RevPAR penetration of 144%.
No New Supply
There are currently no Hotels that are proposed, in the final planning stages, or under construction within a five-mile radius of the Property.
Premium Location
The Property is positioned adjacent to I-370 and Frederick Road, and nearby to I-270, all of which are major corridors that connect Rockville to either Washington D.C. or Baltimore, creating excellent accessibility to the Property. It is also within two miles of the Shady Grove Medical Center and Shady Grove Life Sciences Center, and within two and a half miles of Montgomery College.
Offered Well Below Replacement Cost
The opportunity to acquire this asset well below replacement cost allows an investor to benefit substantially from a combination of location in a growing economy and upside opportunity. 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 Red Roof Inn Washington, DC – Rockville 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 and seek to revamp the operational strategy of the Hotel, implement strategic cost control initiatives, and employ more aggressive yield management strategies.
Corporate Owned and Operated
The Property is both institutionally owned and managed.
Fee Simple Interest
The Property will be offered as fee simple.
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