350 W Montgomery Ave, Porterville, CA 93257

Midscale Flag in a Supply-Constrained Market

Best Western is one of the most recognized midscale brands globally, delivering immediate

consumer trust, a national loyalty program (Best Western Rewards), and strong OTA presence. With

only 120 hotels totaling 6,600 rooms across the entire Tulare/Visalia submarket, the competitive

set is shallow and new supply is limited, insulating the property’s market position.

Largest Hotel in the Immediate Porterville Trade Area

At 115 keys, the Best Western Porterville Inn is the dominant hotel in the city, offering amenities

including pool, hot tub, fitness center, business center, meeting and event space, and

complimentary breakfast that no direct competitor in Porterville can match, capturing both

transient leisure and corporate demand that smaller properties cannot accommodate.

Renovated Asset, Minimal Near-Term Capital Exposure

Originally built in 1992, the property has been meticulously maintained through significant capital

reinvestment, including the addition of two elevators, an ongoing roof renovation, and spa

plumbing upgrades. As a result, a new buyer acquires a modernized asset with reduced near-term

capital expenditure requirements relative to comparable vintage hotels in the region.

Compelling Revenue Trajectory

The property generated $3.43M in room revenue in 2024 and grew to $3.57M in 2025, a yearover-

year increase of approximately 4%, demonstrating consistent demand growth. RevPAR

expanded from $81.74 to $85.04 during the same period, reflecting improving market penetration

and rate optimization.

Outperforming on RevPAR Relative to Class

Despite carrying a higher ADR ($148.73 in 2025) than the broader Tulare/Visalia Midscale and

Economy submarket average ($106), the property achieves a RevPAR of $85.04 that exceeds the

midscale/economy tier average of $61, demonstrating the property’s ability to command premium

positioning within its class and trade area.

Proven Income Producer / Nearly $1.54M Buyer-Adjusted NOI

The property generated $1.67M in owner’s NOI in 2025. After normalizing for a property

tax reassessment at sale and a market-rate insurance premium, the adjusted buyer’s

NOI is $1,537,179, equating to a 9.92% cap rate on the asking price of $15,500,000, a

compelling yield for a flagged midscale asset in California. Submarket cap rate is a 9.0%

average, midscale/economy is 9.5% and midscale alone is 9.4%.

Priced At or Below Submarket Comparables

At $134,783 per key, the offering is priced in line with the submarket average of

$131,563 per key yet delivers materially superior cash flow and physical quality relative

to the comparable trades that make up that average. Active listings in the region for

comparable upper-midscale and midscale product are trading up to $161,000 per key

further supporting the value proposition.

Property Significantly Outperformed Submarket

The property generated RevPAR of $100.16 in 2021 and $97.41 in 2022, a period when

the broader Tulare/Visalia submarket averaged $56.96 and $78.56 respectively. This

premium performance during the most stressed operating environment in hospitality

history demonstrates the property’s resilience and the non-discretionary, institutional

nature of Porterville’s demand base, the type of guests including state workers,

healthcare travelers, and agribusiness contractors who kept traveling when leisure

demand collapsed.

Submarket RevPAR Has Grown Consistently Since Recovery

Per CoStar’s Tulare/Visalia Hospitality Submarket Report dated May 2026, the

submarket’s 12-month RevPAR reached $87 as of April 2026, representing

uninterrupted recovery from the 2020 trough. The property’s 2025 RevPAR of $85.04

tracks in line with the overall submarket, confirming full participation in the market’s

demand recovery.