Small Motels

The lodging industry is on an upswing. Revenue for properties with 25 to 100 rooms is up 7.4% for the first nine months of the year. Here are three motels with fewer than 50 rooms selling for $2.5 million.

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LOCATION/PRICE: Harwich, Mass. / $2.5 million

PROPERTY TAX: $5,067 annually *

THE PROPERTY: 26-room independent with restaurant and two-story owner's quarters.

DESCRIPTION: The motel was built in 1965 as an addition to a 1,200-square-foot 2-bedroom, 2-bath Victorian home. The business operates a heated outdoor pool and 45-seat restaurant.

NOTABLE: Located on 1.3 acres on Cape Cod, the Coachman Inn & Restaurant is walking distance to beaches and boat docks. Estimated 2004 net revenue is $480,000 with a daily RevPAR** of $66.38.

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LOCATION/PRICE: Abilene, Texas / $2.5 million

PROPERTY TAX: $52,020 annually

THE PROPERTY: 48-room two-story franchise on two acres.

DESCRIPTION: Built in 1995, this Comfort Inn comes with an outdoor pool, business center and gym. Each unit offers high-speed Internet access via wireless and DSL data ports.

NOTABLE: Located off Interstate-20 leading into Dallas-Ft. Worth, this motel is two miles from the convention center, zoo and rodeo. It estimates 2004 net revenue of $251,000 with a daily RevPAR of $46.54.

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LOCATION/PRICE: Turtle Lake, Wis. / $2.5 million

PROPERTY TAX: $58,736 annually

THE PROPERTY: Built in 1999, this two-story independent has 46 units and is located on 2.5 acres.

DESCRIPTION: Wood-frame structure with green pitched roof, houses an indoor pool, breakfast room, whirlpool and sauna. Units are equipped with modem hook-up.

NOTABLE: Only four blocks from the 24-hour St. Croix Casino and 75 miles from Minneapolis, the Country Lodge has estimated 2004 net revenue of $211,837 and a RevPAR of $36.94

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LOCATION/PRICE: Salem, Ill. / $2.5 million

PROPERTY TAX: $43,953 annually

THE PROPERTY: Built in 1972, this two-story independent has 95 rooms and is on six acres.

DESCRIPTION: Renovated within the past five years, this flat-roof motel has an outdoor pool and meeting facilities for as many as 100 people. Lounge is run by a third party.

NOTABLE: An on-site Denny's Restaurant operates as a leased business for this motel 75 minutes from St. Louis. It estimates of $160,898 for 2004, with a RevPAR of $22.37.

Sources: smithtravelresearch.com, kinlingrover.com, southeastinternational.com, hotelbrokersinternational.com

Notes: * Cape Cod taxes are lower than the rest of Massachusetts due to zoning; ** RevPAR is daily revenue per available room.

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