I have 2 hotels for sale in Augusta, Georgia. Along with a land parcel.
[removed]
[{"id": "ipzhb3r", "text": "Too high price unfortunately I do have interest in hotels but the multiple is way too high", "replies": [], "depth": 1}, {"id": "ipzskm5", "text": "This property will sell for 7 to 8 million max", "replies": [], "depth": 1}, {"id": "ipzuleh", "text": "You\u2019re having a laugh with that multiple. \n\nI\u2019m close to a property hungry REIT who raised just over $1B in \u201821 to expand their portfolio. They are super aggressive and will take down deals with multiples like this, historically speaking, if the location and other metrics are right for them. Presently, they have paused all purchases because assets are devaluing so fast against their models, it just makes sense to sit back and watch the free fall and just hold onto their remaining 620ish million in dry powder. \n\nThis property will almost certainly sit untouched at this price. I hope you get it though. Good luck.", "replies": [{"id": "ipzwuge", "text": "Yep, I know REITs/PE groups like this too. When money was free and financing easy, they would gobble this stuff up.  Window closed for that.  Sit back and buy up on the discount. Paying a 5 cap should be for a premium asset in a primary market. Not some 85 room lean-to in a tertiary (?? If that??) market.  There is a generation of investment people who are going to get a rude awakening to the re-evaluation of risk/risk premium/risk-free rate.  There may be options to actually put money to work that doesn\u2019t require getting so far out on the risk curve reaching for yield.", "replies": [], "depth": 2}], "depth": 1}, {"id": "ipzv91x", "text": "A little cocktail napkin math\u2026 assume 25% NOI margin (it is probably lower) on that 2.5MM revenue number = 625K NOI = 6.0 cap rate. That is a rich ask given the financing environment and future economic headwinds and increased/sustained interest rates. (Our cost of debt has doubled in the last 6 months.)   Plus, I\u2019m sure it\u2019s going to need some kind of renovation to update it which means more $$$.  Seller is looking too far in the rear-view mirror\u2026this isn\u2019t May 2021. Way overpriced in my opinion.", "replies": [], "depth": 1}]