2596 Navajo Blvd
Holbrook, AZ 86025
Green Tree of Holbrook · Hospitality Property For Sale · 16,188 SF

Investment Highlights - 63 key, exterior corridor hotel built in 1992 - Renovations completed in October 2021 - Priced Well below replacement cost - Transient Covid-19 resistant market - Huge upside potential Quick Overview PHC Hotel Advisors is proud to present the Green Tree Inn, Holbrook AZ. The fully renovated hotel is priced well below market value at $2,700,000.00 or $42,856 per a key. The property renovations have been mostly completed in October, 2021 with only minimal work remaining. The property has undergone a studs out renovation, going as far as addressing the plumbing, electrical, and roof. The rooms have been completely retextured, repainted, and refloored. The seller has replaced all soft goods, case goods, and fixtures. Additionally, the parking lot has been resealed, with a pool scheduled to be installed by mid-2022. The two story asset presents a value add opportunity with a turn key property. Taking into consideration a number of comp set figures, the property is well position to conservatively gross 1.1m by the 2nd to 3rd year after reopening in a covid resistant tertiary market. Financial Breakdown (PRO FORMA) While the property hasn’t been open for over a year, we can extrapolate expected performance based on a number of similar assets. Taking the comp set into consideration, we are aware that the property should be achieving an ADR of approximately 70.00 with and Occupancy of 65% and an NOI of $365,000 at 36% , In 2020 we saw a minimal impact in the Holbrook market with RevPAR seeing a 15% correction. In genera., secondary and tertiary markets have proven to be the most resilient in contrast to Metropolitan markets during the Covid-19 pandemic. Based on the above figures with a conservative approach is likely to Gross in the Mid $800,000.00 in the first year with an upward trajectory. Acquisition Scenario - Unit: 63 - Built: 1992 - Listing Price: $2,700,000 - Possible Sales Price: $2,600,000 - Expected Gross: $1,007,850 - Price/Project Cost: $2,300,000 (NO PIP) - Down Payment: $675,000 - Loan: $2,025,000 - Loan Payment: $10,688 per month / $128,264 per year at $2,025,000 NOI: $363,960 @ 36% of Gross Room Revenue At a loan amount of $2,025,000, available cash $242,896 results in a 42.2% cash on cash return when accounting for conservative figures.