Overview
Besen Partners Hotel Advisory Group as exclusive agent for Ownership is pleased to offer for sale The Gazebo Inn Oceanfront, 1607 South Ocean Boulevard, Myrtle Beach, SC 29577. The Gazebo Inn Oceanfront presents a prime conversion opportunity in Myrtle Beach. Ownership has invested $1,000,000+ in capital improvements, including roof replacement, HVAC upgrades, room renovations, and security enhancements, ensuring a well-maintained asset primed for repositioning.
Currently operating as a profitable independent hotel, the property generated $2,032,645 in gross revenue in 2024, with an NOI of $745,273 (11% Cap Rate), reflecting a 3.32x revenue multiplier. Additionally, the asset comes with an attractive $4.6M assumable loan.
Investment Highlights
MULTIPLE CONVERSION PATHWAYS:
Extended Stay America Conversion (Approved):
▪ The property has already received approval for conversion to an Extended Stay America, capitalizing on the growing demand for extended-stay accommodations.
▪ 48 out of 68 rooms are equipped with in-room kitchens, making the transition cost efficient and operationally seamless.
Short-Term Rental & Airbnb Model:
▪ The existing zoning allows for legal short-term rentals, enabling operators to leverage Airbnb, VRBO, and other hybrid rental models.
▪ Provides the flexibility to capture premium ADRs during peak seasons, optimizing revenue through dynamic pricing strategies.
Multifamily Residential Conversion:
- The hotel can be converted into a fully residential apartment complex, benefiting from strong demand for affordable housing in Myrtle Beach.
- Projected gross rental income: $884,400 annually, based on studio and one bedroom rents that are beach touching fetching a premium of over $1,100 per unit as per rental comps in the area.
- With a limited supply of new residential units in the market, a conversion provides a stable, long-term income stream while reducing operational overhead.
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