Economy Hotel - Kansas City

Blue Springs, MO

Property Overview

Asking Price: $2,500,000

Avison Young Hospitality Group, as the exclusive agent for the Seller, is pleased to present the Economy Hotel – Kansas City, Missouri, a 90-room property offered unencumbered by management and debt.

Originally purchased with 50 operational rooms and 40 out-of-order rooms, the owner invested in renovations to bring the additional 40 rooms online. The hotel now offers a total of 90 rooms.

This offering provides investors with the opportunity to acquire a stabilized, cash-flowing asset in a strong regional market. The property benefits from in-place income and operational upside, making it well-suited for both owner-operators and value-focused investors.

With construction costs at historic highs due to inflation in labor and materials, ground-up development of a comparable hotel would require significantly higher capital investment. In contrast, this hotel is being offered at a substantial discount to replacement cost, delivering immediate value and an attractive basis for a new owner.

Investment Highlights

In-Place Cash Flow: The hotel is currently operating with positive net operating income, providing immediate yield for a new owner.

Attractive Basis: Offered at $23,333 per key, this asset trades at a substantial discount to replacement cost in today’s high-construction-cost environment.

Originally purchased with 50 operational rooms and 40 out-of-order rooms, the owner invested in renovations to bring the additional 40 rooms online. The hotel now offers a total of 90 rooms.

Efficient Scale: With 90 rooms, the hotel is well-suited for either hands-on ownership or third-party management.

Market Strength: The Kansas City metro continues to benefit from diverse demand drivers including defense contracting, healthcare, and a rebounding regional travel base.