Holiday Inn Express Downtown Sacramento
Sacramento, California
DESCRIPTION
The Hotel-Innvestments Team at KW Commercial is pleased to present to qualified investors the opportunity to acquire the fee simple interest in the 132-room Holiday Inn Express Downtown Sacramento Convention Center, California. Located in the Downtown CORE, the four story hotel is positioned on a 1.18 acre site and is convenient to the incredible Downtown Revitalizing Projects including the $512M, Downtown Plaza & Kings Stadium redevelopment project, the $220M Convention Center expansion and renovation, the Railyards Infill Project, the new County Courthouse with construction estimated at $440M, the $78M Powerhouse Science Center, the expansive Township 9 Housing Development, and the anticipated Republic FC Soccer Stadium.
The Sacramento Region, one of the top five visitor markets in California, generated $4.08 billion in tourism revenue. Sacramento County saw a 5.9% increase in total spending last year. Travel to the county supported 31,290 jobs, most of which, 18,240, were in accommodations and food service. Travelers spent $440M, a 7% increase, on accommodations and $886M, a 3.9% increase, on food service in the county last year.
The seller of the property has invested significant money and time to renovate the lobby to comply with the Formula Blue Brand Standard. The seller is continuing to renovate the property and will complete the renovation of all of the bathrooms by the close of escrow (the buyer will be responsible for the balance of the PIP). The disruption of the renovation has had a major impact on the top line revenue but the hotel is expected to provide the buyer with a significant lift in revenue once the renovation is complete.
The timing of the renovation work at the hotel coincides with modifications being made to the Sacramento Convention Center (SCC). The SCC, 2 blocks from the hotel, is currently closed for renovation and expansion. The expansion of the SCC will included 65,514 of new event space, 34,835 of new pre-function space, and 36,254 of additional support space. The renovation is set to conclude in 2020 providing the buyer the hotel with an excellent Year 1 scenario.
