Description

This offering presents the fee-simple interest in a 32-unit EconoLodge by Choice, including a 3-unit manager suite and two retail spaces, situated on a prime ±1.6-acre corner parcel in Hoover, an affluent suburb of Birmingham, Alabama. The property offers a strong value-add opportunity with high visibility along U.S. Hwy 31 and direct access to I-65 (Exit 252), a major corridor with approximately 37,000 vehicles passing daily. The hotel is strategically located near significant demand drivers, including Riverchase Galleria (2.7 miles), UAB Hospital (9 miles), several universities, and a cluster of national retailers such as CVS, Walmart, Publix, and Aldi, providing guests with convenience and enhancing exposure. Birmingham continues to experience rapid economic growth, with over $690 million in new building permits issued in 2024. Key developments fueling the local economy include the newly opened 9,300-seat Coca-Cola Star Amphitheater, 4.04 million overnight visitors annually, and major investments from companies like Coca-Cola and Wells Fargo. Jefferson County, Alabama’s largest economy, is further strengthened by projects such as the 1,100-acre JeffMet North Industrial Park, projected to create 4,700 jobs. With robust infrastructure and a pro-business environment, the market supports growth in logistics, healthcare, and technology—positioning this hotel to benefit from sustained economic momentum. In addition to the hotel, the property includes two income-producing retail tenants, Wings R King and Barristers Tavern, generating approximately $92,400 in annual cash flow. Allocating $10,000 of expenses to the retail portion at a 7% cap rate estimates the retail value at approximately $1.1 million. Effectively, investors acquire the hotel for $1.25 million, equating to $39,063 per key.