1100 Ramada Drive | Lansing, MI 48911
CONFIDENTIAL OFFERING BROCHURE
LIstIng OffeReD CB Richard Ellis Hotels presents, for your consideration, the opportunity to acquire
By: the 100-room Americas Best Value Inn in Lansing, Michigan at a very affordable
James Johnson price. The limited service hotel is located just south of downtown Lansing. The
Santa Fe: 505.986.5890 one-story, exterior corridor hotel is situated on 2.9 acres along I-96, and within an
eight mile drive of the State Capitol, Michigan State University, Sparrow Hospital,
Jackson National Life Insurance, and General Motors.
Asset Americas Best Value Inn
yeAR BUILt Originally built in 1980 as a Knights Inn. The property consists of four separate one-story
OwneRshIp InteRest Fee Simple
sIte AReA 2.9 acres (±128,066 square feet)
pARkIng On-site surface parking (133 spaces)
nUMBeR Of UnIts 100 rooms and a two bedroom manager’s apartment
COnstRUCtIOn Wood construction with stucco exterior. The roofs of each building are wood trusses covered
topped by asphalt shingles.
MeetIng fACILItIes A large 600 sq. foot meeting/banquet room off the side of the lobby. It is currently used for
CApItAL IMpROveMents Over the last three years improvements have included new carpet, drapes, furniture, sink,
vanities, tile work, and air conditioners to the rooms. All four buildings have new roofs.
Twenty rooms have been completely remodeled. New exterior signs and a PMS system have
been added this year.
AMenItIes Continental breakfast and high speed wireless internet access in the lobby area. The outdoor
pool is available from May to September. A guest laundry room. Each room includes a
microwave and a minifridge.
fRAnChIse AgReeMent Franchise license agreement subject to annual renewal with Americas Best Value Inn
Year End 12 Months Year End Year End
ALL REASONABLE 2009 Ending 4/30/09 2008 2007
Occupancy 35.2% 35.8% 36.6% 38.4%
OFFERS CONSIDERED! Average Daily Rate $42.29 $38.23 $38.77 $39.05
RevPAR $14.89 $13.72 $14.19 $15.00
Rooms Revenue $434,800 $501,460 $519,544 $547,547
America’s Best Value Inn| Lansing, MI
TransienT & Leisure DeManD to year contract. Additionally, franchise fees are limited to
The Americas Best Value Inn is well located to capture transient, $1,500 per month. This franchise is ideal for a hands on
leisure and SMERF demand due to its proximity to the area’s owner/operator looking to have an affordable association
corporate and leisure attractions. Easy interstate access, with a nationally known brand and reservation system.
adequate parking facilities, and great visibility positions the
property to accommodate leisure and trucking demand.
Nearby demand generators include the State Capitol,
Michigan State University, Sparrow Hospital, Ingham County
Regional Medical Center Jackson National Life Insurance,
Cooley Law School, Lansing Community College, the Lansing
Center, General Motors, and Oldsmobile Park. The State
of Michigan government is the largest employer in Lansing,
the capitol of the state. Michigan State University (MSU),
located in East Lansing is one of the largest universities in
the country with over 45,000 students. Additionally, MSU is
regarded as one of the top research universities in the United
States. Americas Best Value Inn offers travelers an affordable
alternative to other hotels along I-96, yet comparable
convenience in terms of access to local demand generators,
food outlets, and interstate highway access.
HanDs On Owner/OperaTOr
This property is ideal for a hands on owner/operator who
would live in the two-bedroom manager’s suite. An on-site
owner would be able to reduce operating expenses such as
payroll, increase gross room revenue, and enhance NOI for
the property. Projections for a hands on owner/operator over
the next four years are shown below:
Projected Operating Performance
Year End Year End Year End Year End
2011 2012 2013 2014
Occupancy 40.0% 42.0% 44.0% 45.0%
Average Daily Rate $41.50 $44.00 $46.50 $48.75
RevPAR $16.60 $18.48 $20.46 $21.94
Rooms Revenue $605,900 $674,520 $748,836 $800,719
NOI $160,321 $203,986 $251,482 $283,327
upsiDe pOTenTiaL THrOugH renOvaTiOn
Given the property’s good location, a strong opportunity exists
for new ownership to improve the operating performance.
Renovation of the guest rooms, guest bathrooms, and
common areas will enable the Americas Best Value Inn to
compete more successfully with other economy class hotels
in the market.
The Americas Best Value Inn franchise began in May 2009.
Current ownership has negotiated a free transfer of franchise
to a new buyer which includes no PIP and features a year