Palace Inn & Suites
Hospitality | 51 Keys
Marketing description
Oregon Coast Hotel Opportunity – 51 Rooms + Expansion Potential
Property Overview:
This is a rare chance to acquire a well-maintained, absentee-owned, independent economy hotel located directly along Oregon’s iconic Highway 101 in the heart of Lincoln City. Built in 2002 and renovated in 2021, the 4-story, 51-room property includes oversized suites with kitchenettes, whirlpool tubs, and patio rooms, plus on-site amenities like a gym, wet spa, and cafeteria space.
The property includes a connected lot and infrastructure to add 21 additional rooms, with electrical capacity already in place. Currently operated with zero marketing and full absentee ownership, the hotel still produces consistent positive net income—presenting major upside for a hands-on operator or franchise conversion.
Financial Highlights:
Asking Price: $5,499,000
2024 Gross Revenue: $730,000
2024 Net Operating Income: $161,000
2024 Cap Rate: 2.93%
2023 Gross Revenue: $755,000 | Net: $185,000
2022 Gross Revenue: $886,000 | Net: $190,000
2021 Gross Revenue: $938,000 | Net: $233,000
Property Details:
Room Count: 51 keys
Stories: 4
Building Size: 22,863 SF
Land Area: 3.35 acres
Year Built: 2002 | Renovated: 2021
Zoning: G-C, R-M
Parking: 70+ spaces | Excellent asphalt condition
Occupancy: Currently operational, absentee-owned
Hotel Class: Economy | Independent | Franchise interest active
Investment Highlights:
Expansion Potential: Lot and utilities in place for 21 additional rooms
High-Traffic Location: 19,500+ vehicles/day on Highway 101
Strong Tourism Base: Near beach, casino, shopping, and kite festivals
Operational Flexibility: Remain independent or convert to flagged brand
Passive Income: Full absentee ownership with stable cash flow
Suite Flexibility: Extra-large rooms can be converted to multi-key options
Walkable Score: 72 – close to restaurants, retail, and entertainment
Confidential Listing – Confidentiality Agreement Required for Financials & Full Offering Memorandum
Investment highlights
✅ 51 Rooms + Lot for 21 Additional Units – Infrastructure and electric capacity already in place
🏗️ Built in 2002 | Renovated in 2021 – Turnkey condition with modernized systems and finishes
💼 100% Absentee-Run – Zero marketing, yet consistently profitable year-over-year
📈 Franchise Interest Active – Strong potential to boost revenue with brand affiliation
🧳 Extra-Large Suites – Kitchenettes, separate bedrooms, whirlpool tubs, patios
💧 Amenities Include – Gym, cafeteria, wet spa room, ADA units
🚗 70+ Parking Spaces – Excellent asphalt condition + connected expansion lot
📍 Prime Hwy 101 Visibility – 19,500+ vehicles/day | Walk Score: 72
🏖️ Tourism Hotspot – Minutes from beach, casino, outlet mall, and festivals
💰 2024 NOI: $161K | Gross: $730K – Cap Rate: 2.93% (Value-add upside)
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