award winning boutique hotel - loopnet...ranked #5 among “the top 10 most romantic hotels in the...

Crowne Plaza Phoenix Airport I Page !1

Award Winning Boutique Hotel

11 Hacienda Suites $5,200,000

9.3% Cap on 2018 Actual Tennis Club Neighborhood

EXECUTIVE SUMMARY APRIL, 2019

EXCLUSIVE AGENT Maxim Hotel Brokerage, Inc. Harry Pflueger 1303 Avocado Ave., Suite 225 (949) 759-8739 Newport Beach, CA 92660 [email protected] CA License #01361118 www.maxim-hb.com

“A perfectly manicured oasis in a great downtown location.” – Condé Nast Traveler

http://www.maxim-hb.com

http://www.maxim-hb.com


Last sold in 2004

Owner operated

Built in the 1920s, positioned as San Giuliano in 2006,

positioned as The Rossi in 2017 and expanded to 11

haciendas in 2018

Within two hours from most of Southern California’s

population of 22.4 million

Condé Nast Magazine 2018 HOT LIST

Strong performer

Not optimized, mostly repeat guests, limited marketing

Excellent potential for boutique portfolio

centerpiece, or an innkeeper/proprietor

Strong, desirable Palm Springs market

Food & Beverage potential with liquor license or adding

restaurant

Two pools; a sun pool and tropical shade pool

Ranked #5 among “The Top 10 Most Romantic Hotels in the US” – TripAdvisor 2016

https://www.cntraveler.com/stories/2016-04-19/best-new-hotels-in-the-world-hot-list-2016





LOBBY

The Rossi Hotel Palm Springs I Page !4

INVESTMENT HIGHLIGHTS

Maxim Hotel Brokerage, Inc. is pleased to present for sale the 11-hacienda Rossi Hotel located at 375 W Arenas Rd, Palm Springs, California, an opportunity to acquire an irreplaceable and acclaimed boutique hotel in one of the nation’s most inspired markets for lifestyle and design oriented hotels.

OVERVIEW

Please consider the following investment highlights:

• Ideal Historic Tennis Club Location - The location in the Historic Tennis Club places the hotel within close walking distance from Palm Springs’ Downtown Village.

• Strong Yield - The asking price represents a 9.3% cap rate based on actual 2018 operating results, after deducting for a 4% Replacement Reserve and adjusting Property Taxes based upon the sale.

• Operating Upside - Despite the strong performance and profit, plenty of upside remains for a new owner. The hotel has not utilized OTAs like booking.com or expedia, travelocity, etc. The hotel has benefitted from a very high ratio of return guests, comprising 70 percent or more of the hotel’s business.

• Large Hacienda Suite Units- Unlike typical guestrooms, every individually-named unit at The Rossi is spacious, typically including a living area and private outdoor patio area with an individual jacuzzi tub.

• Food and Beverage Potential - A new lobby, bar/lounge area, second pool and three additional suites were added in 2018. A new owner could add incremental revenue from food and beverage sales to guests and from special events. The property does not currently have a liquor license, though ownership believes one could be obtained. Layout and design for a potential on-site restaurant is included in the sale.

• Owner/Operator Potential - Some units are large enough to convert for use as comfortable, private living quarters for an owner who wishes to live on-site in the Historic Tennis Club neighborhood.

• Valuable Antique Furnishings - Procured from around the world.

Maxim Hotel Brokerage – Harry Pflueger (949) 759-8739

SUNFLOWER HACIENDA




COBA HACIENDA




PUKA HACIENDA




FOUNTAIN HACIENDA




LOUNGE




HISTORIC TENNIS CLUB NEIGHBORHOOD COMPETITION MAP




Property Summary

Address 375 W Arenas Rd, Palm Springs, California, 92262

Built 1920s/2006/2018

Site 0.55 acre, APN 513-151-047, 513-151-002

Interest Fee simple

Guestrooms 11

Amenities Two swimming pools, lounge area, jacuzzi tubs on guest patios, independent contractor spa services

Parking 11 parking spaces




Financial Summary

2018 2017

Rooms 11 8

Occupancy 84.4% 76.2%

ADR $283.11 $313.57

RevPAR $238.90 $238.93

Rooms Revenue $803,170 $697,686

Total Revenue $852,256 $735,488

NOI $482,432 $353,339

Notes: • Property added 3 units on Feb 1, 2018. • Other Revenues include add-on items, pet fees, event fees,

massage and spa fees. • NOI is calculated after 4% Replacement Reserves and also

adjusted Property Taxes. • Revenue was negatively impacted by the ongoing construction

project next to the hotel since April 4, 2018. Approximately 560 room nights were taken off-line with an impact of at least $100,000.

award winning boutique hotel - loopnet...ranked #5 among “the top 10 most romantic hotels in the...

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