Wingate by Wyndham BWI Airport
Hospitality | 182 Keys | $87,912/key
Marketing description
The Wingate by Wyndham BWI Airport is a high-visibility, 182-key investment opportunity situated in the Baltimore-Washington International Airport (BWI) submarket, one of the region’s strongest lodging markets. The property benefits from consistent corporate, government, and airport-driven demand, making it an ideal acquisition for an investor seeking a stable cash-flowing asset with significant value-add potential.
Offered at $16,000,000 ($88K per key), this asset is priced substantially below replacement cost and provides immediate revenue upside through better revenue management, operational efficiencies, and potential rebranding opportunities. Currently, the property is absentee-run without third-party management, leading to inefficiencies in cost controls, revenue strategy, and ADR optimization.
Financial performance indicates strong potential for repositioning—while the hotel exceeds its competitive set in occupancy penetration (MPI >100%), it lags in ADR and RevPAR penetration (below 100%), demonstrating pricing and revenue management inefficiencies. At market-aligned performance, the hotel is projected to generate $4.5M - $4.6M in gross revenue, enhancing NOI and overall valuation.
Additionally, the property was formerly a Hampton Inn, presenting an opportunity for rebranding under multiple midscale franchise options. With 182 keys, there is also the potential for a dual-brand conversion, capturing multiple demand segments and increasing RevPAR potential.
With BWI Airport’s $1.8B expansion, a growing corporate base, and a strong economic corridor, this investment offers both immediate cash flow and long-term value appreciation. The following Investment Highlights outline the key drivers behind this unique opportunity.
Investment highlights
ATTRACTIVE PRICING WITH STRONG YIELD POTENTIAL:
Asking Price: $16,000,000
True Net Income: $1,529,508
Cap Rate: 9.55%, offering an above-market return in a high-barrier-to-entry market.
Revenue Multiplier (Gross Revenue / Asking Price): 4.0x, reflecting an undervalued asset with growth potential.
Discount to Replacement Cost:
The cost to develop a 182-key midscale hotel today exceeds $175,000 – $200,000 per key.
Total replacement cost: $31M - $36M+, making this acquisition at $88K per key a significant discount.
REBRANDING & DUAL BRANDING POTENTIAL
Rebranding Opportunity:
The property was formerly a Hampton Inn, proving viability for a strong midscale brand affiliation.
Multiple midscale brand options available under Wyndham, Choice, Hilton, and IHG, which can enhance market positioning.
Dual-Branding Potential:
With 182 keys, the property is an ideal candidate for a dual-brand conversion, targeting two guest segments under one roof.
Dual branding can improve operational efficiency, enhance demand segmentation, and drive ADR growth.
OPERATIONAL INEFFICIENCIES CREATE A VALUE-ADD OPPORTUNITY
Absentee Ownership with No Third-Party Management:
Currently self-managed, leading to inefficiencies in cost control, revenue strategy, and guest service.
A professional management team can optimize operations, improve ADR, and drive NOI growth.
High Operating Costs with Room for Expense Reduction:
Payroll & Benefits: Currently at $926K annually, higher than market norms. Efficient staffing adjustments can enhance profitability.
Utilities: Running at $179K annually, indicating potential for savings through energy management programs.
Real Estate Taxes: $299K annually—a reassessment or appeal may provide cost savings.
Operational Focus on “Heads in Beds” Limits Profitability
The current owner prioritizes occupancy over rate, leading to high MPI (Occupancy Penetration) but underperformance in ADR and RevPAR.
Revenue Per Available Room (RevPAR) Penetration Below 100% – The property is not achieving its full market share of revenue.
STR PERFORMANCE – REVENUE GROWTH OPPORTUNITY
Occupancy Penetration (MPI) Above 100%: The hotel captures more than its fair share of occupied rooms in the market, proving demand exists.
ADR Penetration Below 100% (ARI Weakness): Underpricing rooms compared to competitors, creating a significant opportunity to increase ADR.
RevPAR Penetration Below 100%:
With optimized pricing and revenue management, the property is projected to hit $4.5M - $4.6M in gross revenue.
This represents a 10-15% increase over current revenue levels, significantly improving net income and valuation.
This property represents a prime repositioning opportunity for an active investor or an experienced hotel operator. The combination of:
Significant discount to replacement cost.
Proven demand fundamentals with BWI Airport, government, and corporate demand.
Opportunities to optimize costs and enhance revenue.
Rebranding and dual-branding potential to maximize market penetration.
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