Listed by Maxim Hotel Brokerage Inc
$7,295,000
Del Marcos Hotel
Details
APN 513-202-002
Property Type Hospitality
Sub Type Hotel
Square Footage 8,383
Keys 17
Cap Rate 2.54%
NOI $185,160
Occupancy 53.6%
Tenancy Single
Price per SqFt $870
Class A
Year Built 1947
Buildings 1
Stories 2
Acreage 0.470
Zoning R-3 Multiple-family residential and hotel zone
Parking Spaces 11 spaces
Parking Per SqFt 1.31
Investment Type Value Add
Ownership Fee simple
Hospitality | 17 Keys | $429,118/key
Marketing description
Maxim Hotel Brokerage, Inc. is pleased to present an exclusive listing on Del Marcos Hotel. Ideally located within Palm Springs premier neighborhood for boutique hotels, the hotel is within a very short walking distance to Palm Springs Downtown Village and proximate to numerous spectacular restaurants and retail stores. Palm Springs is within two hours drive of Southern California's 22-million-person population base. Unencumbered by brand or management, a new entrepreneurial owner will own and operate one of the highest rated boutique hotels in Palm Springs, a world class boutique destination hotel and resort market.
Del Marcos Hotel is a mid-century modern boutique hotel that competes within the high-end boutique segment in the Palm Springs market. Del Marcos Hotel is a 17-room mid-century modern style destination boutique hotel in the Historic Tennis Club neighborhood of Palm Springs. The Property was purchased by its current owner in 2023, and is positioned as a primary showcase for mid-century modern architecture and design in Palm Springs. The hotel offers 17 rooms within a single 2- and 1- story wood-frame, U-shaped building. Designed by William Cody, Del Marcos is a focus on the Modernism bus tour and walking tours of Palm Springs.
Investment highlights
- Premier Location within Historic Tennis Club Neighborhood - The hotel is nestled among some of Palm Springs' best performing boutique hotels, including Avalon, La Serena Villas, The Ingleside Inn, Willows, Holiday House, Rowan and the future home of The Soho House Palm Springs. The Downtown Village is a short walk.
- Institutionally Owned and Operated - Originally built in 1947, current ownership bought the hotel in 2023 as part of a three-hotel portfolio anchored by La Serena Villas, adjacent to the south.
- Historically Strong Performance - The property historically achieved strong RevPAR, in excess of $230 as recently as 2023. NOI exceeded $600,000 in recent years.
- Positive Market Trends - Performance trends have been stable and improving for the Palm Springs hotel market since 2023's record breaking year. Market RevPAR is healthy and improving. Convention bookings, airport passenger counts and hotel performance trends have been very strong and are showing great promise for the remainder of 2026.
- Fee Simple Site - Unlike many other hotels in the Palm Springs market, Del Marcos offers fee simple ownership.
- Rare Class 1 Historic Landmark Designation – Designed in 1947 by renowned architect William F. Cody as his first independent commission, Del Marcos Hotel was designated a Class 1 Historic Site by the City of Palm Springs in 2012 in recognition of its architectural and cultural significance. As one of the city's few historically designated boutique hotels, the property offers a highly differentiated hospitality experience and benefits from enduring appeal among architecture, design, and heritage-focused travelers.
- Mills Act Agreement - Recorded Historic Property Preservation Agreement (Mills Act) with the City of Palm Springs provides favorable historic property tax treatment and runs with the land. This agreement materially reduces annual real estate taxes versus conventional valuation methods.
- Revenue Recovery Opportunity – Del Marcos historically achieved occupancy levels approaching or exceeding 80% and RevPAR above $200, demonstrating the property's ability to generate strong cash flow within the Palm Springs boutique hotel market. Recent performance presents a compelling opportunity for a new owner to implement targeted capital improvements, enhanced revenue management strategies, and focused sales efforts to restore market share and drive revenue growth.
- Boutique-Focused Operating Strategy – The property's recent management transitions create an opportunity for a new owner to implement a more hands-on operating approach tailored to the unique characteristics of an independent luxury boutique hotel. Strategic revenue management, guest experience enhancements, and disciplined expense controls may provide meaningful opportunities to improve profitability.
- Premier Downtown Location with Significant Nearby Investment – Del Marcos benefits from a highly desirable corner location within Downtown Palm Springs' premier boutique hotel district. Continued investment in the immediate neighborhood, including planned luxury hospitality redevelopments and ongoing downtown improvements, reinforces the long-term desirability of the location and supports future revenue growth potential.
- Rare Historic Boutique Asset – As a designated Class 1 Historic Site designed by renowned architect William F. Cody, Del Marcos occupies a unique position within the Palm Springs lodging market. Continued consumer demand for authentic, design-oriented hospitality experiences provides opportunities to further leverage the property's historic character, architectural significance, and boutique positioning.
Listing Contacts
Listed by Maxim Hotel Brokerage Inc
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Loan Amount
$0.00
Annual Debt Service
$--
$--
Annual Cash Flow
$185,160.00
$15,430.00/mo
Valuation Metrics
0
DSCR
2.54%
Cap Rate
2.54%
ROI
Map
Zoning
R-3 ResidentialMulti FamilyMultiple Family Residential And Hotel
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View all 32 uses Last updated Jun 1, 2026 For deeper zoning details, reports are available at Zoneomics
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