Comfort Inn Grantsville Deep Creek Lake 2541 Chestnut Ridge Rd

Property listed by Matthew Gannon License number: MD 5005865
Property tours are by APPOINTMENT ONLY. Any attempts to visit/contact property without agent approval will result in a ban from all future listings! Prospective buyers can view financial history including revenue, NOI, ADR, and Occupancy by clicking "Download OM" and signing a confidentiality agreement. This property is currently listed as unpriced. NO PRICING GUIDANCE IS AVAILABLE. Ownership will review and respond to all offers and ultimately select the offer with the best price and terms.
Colliers, as an exclusive representative of the seller, is pleased to present to qualified investors for sale the Comfort Inn Grantsville located at 2541 Chestnut Ridge Road, Grantsville, MD 21536 (hereafter, the “hotel” or the “asset”). The subject property is a 91-room, interior-corridor, limited-service asset located on 3.99 acres visible to Interstate 68 (17,441 vehicles per day) Chestnut Ridge Road (2,621 vehicles per day). The property, built in 1979 and renovated in 2019-2023, is offered with fee-simple interest and presents investors with an opportunity to purchase a recently renovated, upper-midscale asset below replacement costs. The hotel is located in proximity to the newly-constructed four-lane Route 219 / Flight 93 Memorial Highway which connects Interstate 68 to Interstate 76 / PA Turnpike. The site is 30 miles from the Flight 93 Memorial in Shanksville, Pennsylvania.
The hotel was extensively renovated in 2019-2023 to satisfy Choice Hotels’ brand guidelines as part of the Truly Yours property improvement plan design scheme. All 91 rooms of the hotel are in rentable condition and the property is expected to trade with minimal PIP. The renovations included upgrading the carpet, wallpaper, breakfast furniture, lobby furniture, window treatment and artwork in the public areas, as well as carpet, beds, TV’s, case goods, lighting packages, artwork, lounge, and desk chairs in the rooms. Additionally, the vanity, mirror, wallpaper, lights, artwork and refinished tubs in the guestroom baths and a new PBX phone system and guest room phones installed. As a result of the renovations, a new prospective purchaser can capitalize on leveraging the superior quality of the guest rooms to increase market share via RevPAR penetration. Current ownership has failed to capture RevPAR penetration in line with their STR-defined competitive set as a result of guest rooms being offline during the renovation, in conjunction with being regionally based non-owner-operators whose focus has shifted towards other assets. The offering presents a new owner with the opportunity to enter a renovated product with significant upside through hands-on, aggressive sales and management techniques to bring the property towards competitive set RevPAR levels. The hotel’s STR-defined competitive set includes the following hotels: Quality Inn & Suites Frostburg-Cumberland, Hampton Inn Frostburg, Microtel Inn & Suites by Wyndham Hazelton, SureStay Plus Keyser. Given the superior Choice-brand affiliation and recent renovations completed to the hotel, a prospective purchaser could expect RevPAR penetration index to dramatically increase to be in-line with or exceed that of the competitive set. In 2019, at the beginning of the renovations, the hotel achieved RevPAR of $30.29 compared to the competitive set RevPAR of $40.28, contributing to a penetration index of 75%. Similarly, in 2021, the hotel achieved RevPAR of $30.96 compared to the competitive set RevPAR of $44.45, contributing to a RevPAR penetration index of 70%. Subsequently, in 2022, the hotel achieved RevPAR of $34.03 compared to the competitive set RevPAR of $52.76, contributing to a RevPAR penetration index of 65%. Finally, in the trailing-12 months behind August 2023, the hotel achieved $36.36 RevPAR compared to the competitive set RevPAR of $53.61, contributing to a RevPAR penetration index of 68%. As evidenced by the STR Report, an additional $17 in RevPAR could be captured by a prospective purchaser who is able to utilize the most recent renovations in conjunction with handson, aggressive sales and management efforts to effectively positi on the hotel as a leading lodging option in the competitive set .
The hotel was originally built as a full-service Holiday Inn and includes a vacant restaurant space built out with a full commercial kitchen. A new owner could re-open the restaurant and operate it to generate additional food & beverage revenue, or alternatively, lease out the space for additional passive income.