Best Western Plus, Jonesboro, AR

Key Highlights:

• Prime Asset: 90 guest rooms, 5-story interior corridor building with concrete block construction and two elevators.
• Strategic Location: Jonesboro, AR – a university town and regional hub for manufacturing, healthcare, and education. Located 70 miles from Memphis, TN, and 130 miles from Little Rock, AR.

Market Trends:

• Occupancy has grown 18% since 2020, with further improvements projected through 2025.
• ADR and RevPAR continue to rise, driven by increasing market demand and favorable economic trends.

Performance Opportunity:

• RevPAR Potential: Currently 40% below the comp set, offering room for significant growth.

Brand Options:

• Eligible for Auto Transfer with Best Western Hotels.
• Approved for Spark by Hilton conversion, providing global brand benefits.

Revenue Growth Potential:

• Projected ADR growth supported by strong industry fundamentals.
• Revenue management and operational efficiencies can drive higher profitability and NOI.
• Margin expansion opportunity through streamlined operations and cost controls.

Historical Revenue:

• 2024 - $1.24M
• 2023 - $1.26M
• 2022 - $1.38M
• 2021 - $1.28M

Investment Scenarios:

Scenario 1 – Continue as Best Western Plus:

• Offered at $5.4M with minimal PIP.
• Year 1 Room Revenue: $1.51M | Adjusted NOI: $575K.

Scenario 2 – Convert to Spark by Hilton:

• Offered at $5.4M + $2M PIP for conversion.
• Year 1 Room Revenue: $2.2M | Adjusted NOI: $800K.
• Positioned below replacement cost after acquisition and conversion.