Marcus & Millichap is pleased to exclusively offer the opportunity to acquire the Red Roof Inn located at 100 Indian Center Court in Kingsport, TN. The subject hotel is conveniently located between Interstate-81 and Interstate-26 directly off Highway-11 which bridges the Canadian border in New York to New Orleans in the South. The subject property is a economy hotel situated on approximately 2.63 acres which originally opened in November of 1986. This 2-story hotel consists of 122 well appointed guest rooms and offers amenities such as a seasonal outdoor pool and a continental breakfast. In 2018 the Red Roof was able to generate nearly $1,250,000 in revenue, which was a significant boost from the prior year. As of the December 2018 STR report, the Red Roof Inn was operating with an occupancy percentage of 51.5%, an ADR of $54.36, and a RevPAR of $27.97. Considering the Red Roof is capturing only 76.9% of the competitive market share, a new investor has the opportunity to complete the current ongoing renovation and increase market share through sales and marketing. The property had the highest increase of its competitive set for both Occupancy and RevPAR growth compared to previous year.
The Red Roof Inn of Kingsport is located near all major demand generators including the TriCities Airport, the Bristol Motor Speedway, Interstate-26, Interstate-81, and local restaurants. Businesses in Kingsport have recently made investments in the city worth more than $3 billion, it’s a sign that the economy in Kingsport is growing. Home to the global headquarters of Eastman Chemical Company, Kingsport also hosts a diverse mix of manufacturing firms, technology companies and small businesses. Living in Kingsport puts you within minutes of the Smoky Mountains, excellent fishing areas and several cultural venues. Hikers, kayakers and fly fishers often use Kingsport as a base camp because the city is surrounded by forests, parks, lakes and rivers, creating the perfect setting for outdoor lovers. Located near the Virginia/Tennessee line, Kingsport is within a short, scenic drive of Knoxville, Asheville and Roanoke. The downtown area’s historical buildings, artsy shops and affordable housing make Kingsport an attractive city for families.
In recent years, Kingsport schools have earned a number of distinctions for high achievement, including a ranking on U.S. News & World Report’s Best High Schools and Districts of Distinction. Kingsport City Schools comprises 13 schools, including one high school and a non-traditional school, with total enrollment of 7,100 students. Residents of Kingsport enjoy high-quality medical care provided by a collection of hospitals, clinics and doctors’ offices. These facilities include: Wellmont Health System, Mountain States Health Alliance, Indian Path Medical Center, Holston Medical Group, Frontier Health and Associated Orthopedics. CareChex recently ranked Holston Valley the No. 1 facility in the country for interventional carotid care. More than 450 physicians and 2,000 nurses, techs and support staff work at the hospital, which is part of the Wellmont Health System.