TUCSON, ARIZONA – The U.S. hotel industry suffered its worst year on record in 2020 as the coronavirus pandemic severely crimped business travel and Americans gave up on vacations to stay at home. Hotels hit all-time lows in occupancy and in revenue per available room last year, according to data provider STR.
With an occupancy rate of just 44%, the industry surpassed 1 billion unsold room nights for the first time in history, eclipsing the 786 million that went unsold during the global financial crisis in 2009. And 2021 conditions remained poor before starting to improve. The first half of the year looked much like 2020 as Americans start to line up for vaccine shots, according to STR and the American Hotel & Lodging Association.
But in the second half of the year, pent-up demand for experiences finally started to unleash, bolstering the industry and offering a first glimpse of post-pandemic life slowly but surely. Some owners are deciding its time to sell.
Four hotel / motels sold recently in Tucson within days of each other for an aggregate total of $21 million. The sales are as follows:
Best Western Royal Sun Inn & Suites at 1015 N Stone Avenue in Tucson sold for $7.5 million ($95,000 per room) to a private California investor.
Built in 1969, the 42,827-square-foot hotel features 79 guest rooms in five, two-story buildings. The property is located in Central Tucson, near Downtown Tucson, University Arizona, Tucson Convention Center, Pima College with easy access to freeways I-10 and I-19. Nearby are Tucson's most popular attractions such as Arizona-Sonora Desert Museum, Saguaro National Park, Old Tucson Studios, three shopping malls and golf courses. All major hospitals - UMC, TMC, St. Mary's Hospital and Tucson International Airport are located just minutes away. Students, professors, faculty and their families also choose this Tucson hotel when in town for special events such as graduation or homecoming at U of A. Top features include a reception building, pool, spa, fitness center, business center, Bumbsted restaurant and Wonderwall Bar for great drinks & dinner specials. The seller was also a private California Investor.
To learn more, see RED Comp #9155.
Motel 6 Marana / Studio 6 at 7277 N Camino De Oeste in Marana sold for $6.3 million ($52,500 per room) to a Scottsdale investor.
Built in 1987, the 44,419-square-foot motel features 120 guest rooms in three, two-story buildings. The property is located at Ina Road and I-10 in the Northwest submarket and features newly renovated rooms, free Wi-Fi available in all guest rooms, pool /spa and laundry.
To learn more, see RED Comp #9196.
Quality Inn Airport Tucson at 2803 E Valencia Road in Tucson sold for $3,996,400 ($41,200 per room) to a Phoenix investor.
Built in 1984, the 41,764-square-foot hotel features 97 guest rooms in a single 3-story building. The property is located near Tucson Airport in the Southside submarket. Top features of the hotel include 24-hour front desk, pool, spa, laundry services, facilities for disabled guests, Wi-Fi in public areas, and valet parking car park.
To learn more, see RED Comp #9165.
The Days Inn & Suites at 1440 S Craycroft Road in Tucson sold for $2.88 million ($43,000 per room) to a Phoenix investor.
Built in 1982, the 28,858-square-foot hotel features 67 guest rooms in 5 two-story garden-style buildings. This property is located on the Eastside of Tucson, catering to many demand generators such as the Davis Monthan Air-force Base, along with a mix of corporate and leisure business. The property has been owned by an absentee owner from California.
The buyer plans to convert it to an Extended Stay with pre-plumbed & pre-wired ready for kitchenettes. Additionally, the hotel has a large two-bedroom two-bath manager’s living quarters on-site attached to the office.
Dinesh Dan Rama, Ryan Bodine and Jigar “Jay” Desai of NewGen Advisory in Phoenix handled this transaction.
To learn more, see RED Comp #9177.