Marcus & Millichap is pleased to offer for sale a fee-simple interest in the 57-unit interior corridor, Best Western Plus South Hill Inn located in Virginia. This hotel was constructed in 1988, is situated on a 1.39-acre parcel and is being offered well below replacement costs with the ability to retain the current franchise. The well-appointed guest rooms feature free Wi-Fi, and flat-screen TVs with premium channels, plus coffeemakers, microwaves and minifridges. Additional suites are available and offer whirlpool tubs and/or kitchenettes. Other amenities include a seasonal outdoor pool, a fitness room, a business center, on-site parking, and laundry facilities. Located just off I-85, this hotel is 2 miles from the South Hill Doll & Train Museum and 11 miles from Rosemont of Virginia Winery.
The property benefits from being located in a Qualified Opportunity Zone and is in close-proximity to the band new VCU Health Community Memorial Hospital. The current ownership completed a full Property Improvement Plan in 2019. The turn-key hotel is currently managed by an out-of-state investor who drives to the property weekly to handle operations. A new investor has the opportunity to operate the property directly allowing an opportunity to reduce payroll and increase the cash-on-cash return. Operationally, the property has seen moderate and steady increases in ADR and occupancy as a result of the recently completed Property Improvement Plan. Renovations included both interior and exterior finishes and will contribute to the projected ADR increases moving forward. An investor can expect to see significant traffic increases as a direct result of the opening of the new nearby hospital, described as a 167,000 square foot state of the art facility with 70 acute care beds. Demand generators in the area include tourism from Lake Gaston and the John H Kerr Dam & Reservoir. Additionally, South Hill is home to the Tobacco Farm Life Museum, Model Train Museum, and the Virginia S Evans Doll Museum.
South Hill is a town in Mecklenburg County and is strategically located at the intersection of Interstate 85 and U.S. Highway 58. The town is also served by U.S. Highway 1 and Virginia Route 47, and Interstate 95 is a short 45 miles away down Highway 58. South Hill has a full-service hospital (serving patients from several rural counties), a tobacco market, and several hotels. South Hill has a close relationship with the neighboring town of La Crosse. Lake Gaston, a large reservoir popular with boaters and fishermen, is a short distance to the southwest. South Hill is located on the center of the Mid-Atlantic coast of the U.S., midway between Miami and Bangor, Maine. Closer to home, they’re also halfway between Richmond, VA, and Raleigh-Durham, NC. This highway access serves as an economic advantage to companies who want to save time and money on moving products and supplies, as well as making it easier to hire commuters from their expanded labor market.