A Utah-based private investor has acquired a 156-room select-service hotel portfolio in Cedar City, Utah, for $8.9 million. Other terms were not disclosed.
The portfolio, which consists of a 106-room Quality Inn and a 50-room America’s Best Value Inn, are located within one block of each other on North 1100 West, directly off of U.S. Interstate 15. The Interstate is a major north/south corridor stretching from Alberta, Canada, to San Diego. Cedar City is an important resting stop on the I-15 for visitors traveling to the “Mighty Five National Parks”: Arches, Bryce Canyon, Canyonlands, Capitol Reef and Zion. Each day, approximately 30,000 automobiles pass through Cedar City. The two hotels are also popular among families visiting the 12,000 students enrolled at Southern Utah University, which is less than two miles away.
The Mogharebi Group, a real estate investment and advisory firm, advised on the sale. “Hotels in the region are exceeding pre-Covid levels in terms of occupancy and RevPAR, particularly in Cedar City, which is performing better than most hotels in Utah. This is reflected in the increasing investor appetite for hotels located near the national parks and Utah’s famed ski resorts,” said Mogharebi Senior Vice President Adam Gatto, who leads the firm’s newly formed hospitality practice out of the Salt Lake City office. “We were able to attract numerous bidders immediately upon putting the portfolio on the market and ultimately advised the seller to accept an offer from a local investor with significant holdings in the region.”
Both properties have been well maintained by the seller who has owned them for more than a decade, Gatto added.
Built in 1984 and renovated in 2014, the 106-room Quality Inn at 250 North 1100 West is comprised of two-story buildings situated on three parcels totaling 2.03 acres. Guest facilities include a fitness center, indoor heated swimming pool and business center.
Built in 1998 and renovated in 2004, the 50-room America’s Best Value Inn at 333 North 1100 West is comprised of a two-story building situated on two parcels totaling 1.69 acres. Guest facilities include an outdoor swimming pool and indoor corridors.
The property was co-listed with Kip Paul, vice chairman, investment sales with Cushman & Wakefield.