Marcus & Millichap is pleased to offer the opportunity to acquire the Ramada Inn and Suites located in Sarasota, Florida. The Ramada Sarasota is a 2 story, 136 room interior/exterior corridor hotel located directly off Florida’s famous “Tamiami Trail” with excellent visibility and access to all demand generators. The hotel consists of 136 rentable guest rooms. The room matrix for the property consists of 25 double queens, 62 traditional doubles, 27 kings, 22 executive suites. Each of the guest rooms contain microwave ovens and mini-refrigerators. All guest rooms have fire alarms, feature desks and seating areas, with selected suite rooms featuring sofas and chairs. The average room size is approximately 300 SqFt. The main building of the hotel features both business and fitness centers, breakfast area, full-service restaurant with an outdoor Tiki bar. Other amenities include a seasonal outdoor pool and volleyball court. The property was originally constructed as a Holiday Inn in 1958/78 and consists of reinforced concrete with EIFS masonry trim. The Ramada boasts 6.2 acres and allows for 255 guest parking spaces.
Current ownership has injected approximately $750k in capital improvements over the past 24 months. The capital improvements included new landscaping and irrigation, a new security system, new exterior signage and lighting, hot water storage tanks, new a/c units for the approximately 7,800 sqft restaurant space and an updated roof. The seller has also replaced the case goods, linens and vanities in all the guest rooms, as well as painted the entire interior of the property. The restaurant and tiki bar is currently being operated inhouse and is unencumbered of an existing lease, allowing a new investor the opportunity to capitalize on a long-term lease or improve top line revenues through improved onsite operations. The investment opportunity also includes a 9,000 sqft conference space which has historically generated approximately $42,000 in annual revenue.
The subject property based on its strategic location and superior accommodations is a top market performer among its class but still has room to improve through operations and marketing following a recent renovation completed in 2018. The Ramada Sarasota underwent a significant renovation throughout 2017/18, adding tremendous value to a new owner/operator. As of the Dec 2018 STR report the property is operating with an occupancy of 54.1%, an ADR of $81.12, and a RevPAR of $43.91, which is penetrating the market at an index of 75.1% currently. The property has continued to see an upward trend in performance over the past year and is on pace to exceed $2.6MM in room revenue in 2019.