SALINA, KS, April 14, 2020: HVS Brokerage & Advisory is pleased to announce that, in cooperation with Ten-X, it has closed on the auction and sale of the 100-key SureStay Hotel by Best Western, located at 1846 N 9th Street, Salina, Kansas 67401.
The property, built in 1973, was purchased by Cheema Investments, a Nebraska limited liability company, from I-70 Hotel Corporation, a Kansas limited liability company, in an all-cash transaction.
Hiral Bhakta, managing member of I-70 Hotel Corporation, commented, “This hotel was distressed prior to the recent events affecting the hotel industry. A closed gas station and closed retail building were impacting the appearance and profitability of the hotel. We wanted a high degree of certainty that a sale would occur in the near term,” said Hiral. “Dustin assured us he would produce a buyer and close the deal, and he delivered. My family is very happy with the outcome, and we look forward to working with Dustin and HVS again in the future.”
The property was auctioned on February 27, 2020, and closed escrow 45 days later. There were no delays or changes to the original agreement despite the uncertainty that arose in the hotel industry during that period. The buyer did not require financing and the deal was settled in cash.
“We did a great deal of work early in the process that enabled this transaction to happen,” said Dustin Robinett of HVS. “This hotel was not cash-flow positive at the time of the sale and had not been for some time. We clearly articulated the opportunity to our buyers and outlined the path to unlocking the upside in this deal. Given our hotel knowledge and expertise, we have the ability and credibility to sell hotels in any market environment, whether it’s making money or not,” said Dustin.
The property is located along a heavily traveled section of I-70 on the northern edge of Salina, Kansas. The city is located near the geographic center of the United States at the crossroads of I-70 and I-135 and boasts a diverse economy that includes several manufacturing interests, a strong agricultural economy and related businesses, and the growing alternative energy sector of wind and solar.
HVS Brokerage & Advisory team members Dustin Robinett and Kelson Reimer participated in this transaction. Jennifer Stein Real Estate, Inc., a licensed Kansas real estate broker, served as broker of record for HVS Brokerage & Advisory.
About HVS Brokerage & AdvisoryThe Brokerage & Advisory Division is a specialized group within HVS that offers brokerage, debt and equity financing, and investment search services focused exclusively on the hospitality industry. With a global footprint and over 40 offices nationwide, HVS’s hospitality intelligence and extensive expertise. During this unprecedented time of COVID-19 disruption, we are fully functional and stand ready to assist you with any aspect of your business through this challenging time.
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