Value-Add Holiday Inn Express & Retail Portfolio In Pasadena
Acquire a 93-key Holiday Inn Express & Suites with an adjoining income-producing retail portfolio in one of Southern California's strongest hospitality markets. This fee simple investment combines established hotel cash flow with high-margin retail income and offers significant upside through repositioning, renovation, and operational improvements. The offering consists of a 93-room Holiday Inn Express & Suites operating under the globally recognised IHG brand together with a multi-tenant retail centre located on the same campus. The hotel generated T-12 revenue of $4,091,174 and T-12 NOI of $1,000,623, while the retail component contributes $324,392 in T-12 NOI with minimal management requirements. Combined, the portfolio delivers T-12 NOI of $1,325,015 and is offered at an approximate 6.5% blended cap rate. Buyers also have the flexibility to acquire the hotel and retail components separately. Located directly on East Colorado Boulevard along Pasadena's iconic Rose Parade route, the property benefits from year-round demand generated by the Rose Bowl Stadium, Pasadena Convention Center, California Institute of Technology (Caltech), NASA's Jet Propulsion Laboratory, Huntington Hospital, Old Town Pasadena and numerous corporate, educational and cultural institutions. The hotel ranked #1 in RevPAR within its seven-property competitive set, highlighting its strong market position despite current transitionary performance. The investment represents a compelling value-add opportunity. A Property Improvement Plan (PIP) following ownership transfer is expected to provide the platform for increased ADR, improved occupancy and higher profitability. Additional upside exists through enhanced revenue management, owner-operation, expanded ancillary revenue, meeting space utilisation and retail lease optimisation. Projected Year 3 stabilised NOI is estimated at $1,561,663 following renovation and market recovery. The hotel is offered unencumbered by management, allowing an investor or experienced operator maximum flexibility. Full due diligence materials are available following execution of a confidentiality agreement.
Location
Located in Pasadena, California, this hotel and retail investment benefits from a prime position within one of Southern California's most established hospitality markets. The property is situated along the internationally recognised Rose Parade route, providing exceptional exposure and consistent demand generated by one of the country's most famous annual events. Pasadena attracts more than 8 million visitors each year and is supported by a diverse economy driven by tourism, education, healthcare, technology and business. Major demand generators include the Rose Bowl Stadium, Pasadena Convention Center, California Institute of Technology (Caltech), NASA's Jet Propulsion Laboratory (JPL), Huntington Hospital, Old Town Pasadena, Pasadena City College, ArtCenter College of Design, the Huntington Library, Norton Simon Museum and the Pasadena Playhouse. The local hospitality market benefits from limited new hotel supply due to high barriers to entry and restrictive development conditions, supporting long-term occupancy and room rate growth. Pasadena's affluent population, strong employment base and year-round mix of business, leisure and event travel continue to make it one of the most desirable hotel investment markets in the Greater Los Angeles area.
Real Estate
Real Property Included
Franchise Terms
Holiday Inn Express & Suites (IHG).
Premises Details
93-key Holiday Inn Express & Suites with an adjoining multi-tenant retail centre located on approximately the same campus at 3500 E. Colorado Boulevard, Pasadena, California. Amenities include an outdoor pool, whirlpool, fitness centre, business centre, meeting room, complimentary breakfast area, rooftop lounge, self-parking, and on-site restaurant. The retail component comprises 13 suites with 12 currently occupied.
Support & Training
24-hour hotel operation.
Expansion Potential
Property Improvement Plan (PIP)-driven repositioning. Revenue management optimisation. Increased ADR following renovation. Growth in meeting, event and ancillary revenues. Retail lease renewals and re-tenanting at market rents. Opportunity for owner-operator margin improvements.
Size In Square Feet
14,486 sq ft
Competition / Market
The hotel competes within Pasadena's established hospitality market and ranked #1 in RevPAR within its seven-property competitive set over the trailing 12 months. The market benefits from constrained new supply due to zoning restrictions and high barriers to entry.
Franchise Opportunity
Yes
Financials
Interested in this business?
Get in touch with the seller to ask questions and learn more.
Get Expert Help with your acquisition
Connect with an advisor who can guide you through evaluating, financing, and closing the right business acquisition.
Similar Listings
Hotel Resort for Sale in Playa Coronado, Panama
Turnkey Banquet Hall for Sale in Miami, FL - Ideal for Weddings and Events