By Lilly Riddle
A Motel 6 and Studio 6 property in Victorville offers buyers a unique investment opportunity alongside a planned distribution warehouse development. The 39,000-square-foot property, owned by Hotel Investment Group, is being marketed by Matthews Real Estate Investment Services at an asking price of $10.6 million, or roughly $269 per square foot.
Located an hour from both Los Angeles and Orange County, the 101-room, two-story property built in 1989 is positioned on a 5.92-acre lot and draws from a dense population of more than 100,000 within a five-mile radius. It consists of two hotel structures, a building for the lobby and management quarters and a leased restaurant, which brings in $30,000 annually in rent. Short-term rental revenue for 2021 and 2022 averaged $2,400 per room, and its proximity to Interstate 15 and Route 66 draws in more than 64,000 vehicles a day, according to the market listing. The estimated cap rate is 6.62 percent.
In 2021, Motel 6 saw 90 percent occupancy, with 77 percent occupancy in 2022 and 73 percent occupancy in 2023, according to market documents. The average daily rate for Motel 6 has increased from $76 dollars in 2021 to $79 in 2023, and at Studio 6 from $80 in 2021 to $86 in 2023. The total amount of revenue the property generates has declined from $2,497,832 in 2021 to $2,005,119 in 2023.
Nearby, an 806,080-square-foot light industrial distribution center covering 40 acres — called the Stoddard Wells Warehouse — is planned for development. It is directly adjacent to Motel 6 and Studio 6 on Stoddard Wells Road and the southwest corner of Abbey Lane. The distribution center will offer more than 90 semi-truck docking bays, “bringing an influx of trucking that one can reasonably expect will generate a significant increase in lodging revenue in addition to the increase in revenue during the construction period,” according to the market listing.
The property is located within driving distance of the Southern California Logistics Airport — a major air cargo facility — and the Apple Valley Airport, as well as numerous retail properties including Starbucks, Costco, Macy’s and Walmart. It is also close to the Mojave Narrows Regional Park, the Victor Valley Museum and Art Gallery and the George Air Force Base Museum.
Motel 6, which was founded in 1962, has experienced a 23 percent increase in its employee count in the past year according to the property’s marketing document, and it now employs 5,716 people. With more than 1,400 locations across the United States and Canada, Motel 6 has become the largest owned-and-operated hotel chain in North America, with an estimated annual revenue of $2 billion, per the listing.
