300 Truxtun Ave Bakersfield, CA 93301; Hotel & Motel For Sale; 3/19

300 Truxtun Ave Bakersfield, CA 93301; Hotel & Motel For Sale; 3/19

Delta by Marriott conversion Hotel in Central CA

Price $14,900,000 Property Type Hotel & Motel
No. Rooms 200 Property Sub-type Full Service
Building Size 200,000 SF Property Use Type Business For Sale
Price/Room $74,500 Corridor Interior



Hotel Brokers Inc, is pleased to Offer Exclusively for Sale: Rare California Full Service Up Scale Rebranding and Value Add Opportunity.
The nine story hotel 200 room hotel is full service, complete with conference center, meeting space, top floor lounge, bar and restaurant located in one of the highest growth markets in California. The hotel has the potential to become the premier destination hotel in the market.
In 2016 the hotel generated a total revenue of $4,484,000 including $3,650,000 in room revenue. The property is underperforming due to multiple changes in management including attempted self-management by an unqualified management team.
The hotel is currently under-performing in the mostly weaker competitive set on rate by $20.00, primarily due to mis-management of sales and unnecessary discounting. Hotel ADR $85.66 vs. Comp Set $105.95.

Rebranding the hotel to a UP SCALE Marriott / Starwood / Hyatt, franchise will significantly improve Occupancy and ADR. The hotel can potentially be converted to a Delta By Marriott, Sheraton, Hyatt Place amongst other options.
Upon conversion our conservative projections would increase the occupancy 7% to 65% and ADR by $25.00 to $110.00. (Note the comp set ADR is $105.94), delivering approx. $6,100,000 in revenue in the 1st year after rebranding.
Anticipated PIP for conversion to a higher end brand is projected to be in the range of $3,000,000 to $5,000,000 based on the franchise. For a completed cost of $89,500 /key to $99.500/key approximately 30% below full service hotel replacement cost after conversion.
Potential to rebrand to Marriott’ s newest upscale, full service brand, Delta Hotels by Marriott, which offers a lean and flexible operating model with a clean and refreshing design. Marriott has shown enthusiastic interest in the rebranding opportunity.