Red Roof Plus Wichita East 7335 E Kellogg Dr

As the exclusive representative of the seller, Marcus & Millichap's Hospitality Division is pleased to present for sale to qualified investors the Red Roof PLUS+ Wichita East (‘Hotel’ or ‘Property’) located in Wichita, Kansas. The Red Roof- branded Hotel is offered at $3,650,000 or $37,629 per key.
The Red Roof PLUS+ Wichita East stands prominently as a seven-story, 97-room hotel located at 7335 E Kellogg Drive in Wichita, Kansas. Positioned for high visibility and convenient access off US 54/US 400, known as Kellogg Avenue. Common area amenities include an indoor pool, sauna, hot tub, fitness center, snack center, on-site laundry facilities, vending machines, and limited bus and truck parking. The property boasts 4,125 square feet of meeting/event space spread across two banquet rooms, featuring open catering options, which underwent a complete renovation in December 2022. Ownership has diligently maintained the property, investing over $40,000 in additional capital expenditures in 2023. These enhancements included upgrading to interior and exterior LED lighting, revitalizing the pool area with concrete resurfacing, new tiling, updated pool lighting, and replacing both the pool water heater and area heater.
Wichita, Kansas, strategically positioned near major transportation arteries such as Interstate 35 and U.S. Route 54, serves as a pivotal hub connecting the region to key cities and economic centers. As the largest city in Kansas and a central component of the Wichita Metropolitan Statistical Area (MSA), Wichita plays a vital role in the state's economy.
Wichita Dwight D. Eisenhower National Airport (ICT), located approximately 10 miles from the property, serves as the primary commercial airport in the region, handling over 1.6 million passengers annually. McConnell Air Force Base maintains strong ties with Wichita, contributing economically through jobs and services with over 2,500 active-duty members and 750 civilian employees.
Wichita's economic landscape is bolstered by major corporations within a ten-mile radius of the hotel. Notable companies include Koch Industries (3 miles), headquartered in Wichita and one of the largest privately held companies in the world; Cargill Protein (4.8 miles); Spirit AeroSystems (5.4 miles); and Textron Aviation (11.4 miles), which collectively employ over 9,000 team members and significantly contribute to local employment and business vitality. The city's rich array of tourist attractions, such as Exploration Place (6.9 miles), Sedgwick County Zoo (12.1 miles), and Old Town Wichita (5 miles) – a bustling area known for its restaurants, cocktail bars, and live music venues – along with educational institutions like Wichita State University (4 miles) and Newman University (7.0 miles), contribute to Wichita's vibrant hospitality and leisure sectors. Healthcare facilities such as Wesley Medical Center (4.0 miles), with over 750 beds, and Ascension via Christi Health (5.9 miles), with over 400 beds, provide extensive medical services, further enhancing Wichita's role as a healthcare hub in the region.
The property is priced at a competitive $37.6 thousand per key, implying a low 2.87 Room Revenue Multiplier and a high 11.7 percent cap rate. This indicates strong revenue potential and a favorable return on investment.
As of year-end 2023, the hotel earned just under $1.4 million in total revenue and achieved $450 thousand in net operating income. This denotes an NOI margin of 32.8 percent. With this level of efficiency, the property will likely generate significant profitability which will lead to a higher resale value.
BROKER OF RECORD
Colby Haugness
Kansas
P: (816) 410-1010
Lic #: 00241410