Saint Louis Area Hotel

Business Overview This business is a branded limited-service hotel Built in 1990 and positioned on a 2.25-acre site, it features 84 rooms across two floors. The mix includes 40 double rooms, 33 king rooms, and 9 suites with kitchenettes, along with ADA-compliant units. Amenities include a seasonal outdoor pool, guest laundry facilities, and ample surface parking suitable for buses, trucks, and RVs. The hotel caters to both business and leisure travelers. Its proximity to major interstates and demand generators such as healthcare institutions, universities, and corporate headquarters positions it as a steady performer in the St. Louis metro lodging market. Financial Performance Historical Operations 2022 Room Revenue: $851,462 Total Revenue: $862,015 EBITDA: $173,894 (20.2% margin) 2023 Room Revenue: $805,839 Total Revenue: $795,999 EBITDA: $168,308 (21.1% margin) Performance shows a slight decline in occupancy (from 51.8% to 45.3%), but ADR grew from $55.30 to $58.99, stabilizing RevPAR near $27. Expense Structure (2023) Departmental Expenses: $261,967 (32.9% of revenue) Undistributed Operating Expenses: $216,800 (27.2%) Fixed Charges (Taxes & Insurance): $125,043 (15.7%) Total Expenses: $627,691 (78.9%) The property demonstrates a consistent ability to generate positive cash flow, with gross operating profit margins between 36–39%. Forward-Looking Projections (5-Year Pro Forma) The broker’s pro forma projects moderate growth, with occupancy stabilizing around 46% and ADR increasing to $66.54 by Year 5. Year 1 EBITDA: $152,416 (20.3% margin) Year 5 EBITDA: $186,515 (21.8% margin) These forecasts suggest gradual revenue and profit expansion, underpinned by steady demand and careful cost management. Investment Highlights Future Growth Drivers – The upcoming $1.7B NGA West development, expected to bring over 3,000 jobs by 2026, will further enhance regional lodging demand. Offering – The property is being marketed on a “call for offers” basis, allowing investors to acquire it at a competitive Room Revenue Multiplier of 3.0 RevPAR Penetration – The hotel has achieved an index of 101%, with projections sustaining above 109% over the next five years, signaling strong competitive positioning. Capital Improvements – A major furniture upgrade worth $600,000 has recently been completed, significantly enhancing guest experience and reducing near-term CapEx needs. Diverse Demand Base – Demand is driven by healthcare (Barnes-Jewish Hospital), education (SLU, Washington University, SIUE), corporate travel (Nestlé Purina, Peabody Energy, Federal Reserve Bank), and tourism (Gateway Arch, Cahokia Mounds, CITYPARK Stadium).