Fifty Two Room Motel In Drayton Valley Alberta For Sale

Drayton Valley, Alberta

Attention Investors! Here’s an opportunity to acquire a profitable 52 room motel in the thriving town of Drayton Valley. This limited service motel was built in 2006 and has been well-managed and maintained with upgrades made as necessary. The property also includes a large parking lot and a 2-car detached garage used for storage.

Despite the recent market uncertainty that has impacted the rural Alberta hotel/motel market, this property remains marketable given its size and condition. The effective age of the building is only 15 years, and with ongoing maintenance, there is a remaining economic life of 35 years. Additionally, recent renovations have improved the property, making it even more attractive to potential buyers.

While the property has historically underperformed, this presents an excellent opportunity for potential upside. This is an attractive investment opportunity for those looking to expand their portfolio or enter the hospitality industry.

Asking Price

$2,600,000 (CAD)

Sales Revenue

$730,000 (CAD)

Cash Flow
$292,120 (CAD)
Real Estate
Real Property Included
Years Established

15

Reason for Sale

Retirement

Size in Square feet
22,044 Sq.Ft.
Location

Subject Location: The Subject Property is located in southwest, Drayton Valley, with frontage onto 34 Avenue and 63 Street and 150 M west of provincial Highway 22 (Cowboy Trail).

Adjacent Uses: All immediate surrounding properties are industrial and include a UFA card lock fuel site, industrial storage yards, and industrial/office buildings.

Expansion Potential

The current owner does limited marketing. For a potential purchaser who has marketing experience or is willing to invest in marketing, there is enormous potential to drive growth. While the property has historically underperformed, with aggressive marketing and promotion, there is an excellent opportunity to increase occupancy rates and revenue.

Given the growth of the economy around Drayton Valley and increase in oil prices, it’s more important than ever to have a marketing strategy in place to attract guests and stand out from the competition. With the property’s well-maintained condition, recent renovations, and ample parking, it has all the potential to become a go-to destination for travelers in the area.

A new owner with marketing experience or a willingness to invest in marketing can leverage these advantages and capitalize on the property’s potential to drive growth and increase profitability.

Competition / Market

Property Rates Based on Double Occupancy per Night. Spot-rate Survey November 2022. Excludes taxes.

Subject Property $89-$129. Built in 2006, non-flagged motel. Limited service. Free parking. Breakfast included. 52 rooms.

Holliday Inn Express $135.Upper midscale. Built in 2007, flagged hotel. Amenities: Swimming pool, fitness centre, meeting centre, complimentary breakfast, free parking. 96 rooms.

Best Western Plus Drayton Valley All Suites. $189. Upper mid-scale built in 2014. Flagged. Business centre, fitness centre, meeting space, on site retail. free parking. 90 rooms.

Foxwood Inn and Suites. $84. Economy. Non-flagged, limited-service. Amenities: Free breakfast, fitness room, Free parking. 80 rooms.

Westwood Inn $89. Economy. Built in 1976. Independent hotel. Restaurant, free parking. 67 rooms.

Lakeview Inn and Suites.$77. Midscale. Built in 1995. Chain management. Business centre, fitness centre, bar, restaurant, free parking. 90 rooms.

Super 8 by Wyndham. $115-$139. Economy. Built in 1983.-Flagged, business centre, fitness centre, restaurant. Free parking. 60 rooms.

Home Away Inn. $74. Economy. Built in 1985, independent, Restaurant and free parking. 45 rooms.

BCM Inns- Drayton Valley. $85. Economy. Built in 1987, independent, Restaurant and free parking. 58 rooms.

Aspen Motor Inn. $75. Economy. Built in 1956. Non-flagged, limited-service. Free parking. 44 rooms.

Service Plus Inns and Suites. $125. Midscale. Built in 2007/2013, Independent hotel, limited-service. Amenities: Swimming pool, fitness centre, free parking, and breakfast. 135 rooms.

Matador Motel. $84. Economy. Built in 2009, independent, limited service free parking. 20 rooms.

Ramada by Wyndham Drayton Valley. $132-$175. Midscale. Built in 2008, flagged hotel, limited-service. Amenities: Swimming pool, fitness centre, complimentary breakfast, free parking. 82 rooms.

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