HREC Investment Advisors arranged the sale of the 115-room Red Roof Inn Wilkes-Barre Arena located in Wilkes-Barre, Pa. The buyer is a Northeast operator and existing Red Roof franchisee, who intends to renovate the property to the latest brand standards.
HREC Investment Advisors represented the seller during the transaction. The sale was negotiated by Zane Varvel, VP in the firm's Chicago office, and Herb Warmbrodt, principal in the Kansas City office. The property sale was a strategic disposition from corporate Red Roof as the brand continues to grow well past 500 locations, aiming to reach 600 by the end of 2018.
“Red Roof and their franchisees are doing a great job of working together to help the brand continue to grow, maintain high standards, and improve market perception. Consistently rated among the top leaders in guest satisfaction in JD Power and Associate's economy segment, everyone involved is benefiting from these actions,” Varvel said in a statementl.
Wilkes-Barre is located in northeastern Pennsylvania. Its economy benefits from a base of healthcare facilities, colleges/universities, corporate and industrial business parks and leisure attractions. Geisinger Wyoming Valley Medical Center, a hospital and the fourth largest employer in Luzerne County, is located less than two miles from the hotel. Additional healthcare facilities located within a 10-mile radius of the property include Allied Services John Heinz, VA Medical Center, Northeast Regional Cancer Institute and the Wilkes-Barre General Hospital. Major corporations in the area include Amazon, which has a 400,000 square foot distribution center located six miles north of the Hotel.
HREC is a lodging and gaming real estate advisory firm specializing in property sales, mortgage brokerage, equity/JV structuring, consulting (market studies and appraisals) and litigation support. HREC operates 16 offices throughout North America.