Investing in hotels in Milwaukee can be a lucrative venture, especially considering the city's rich history, cultural attractions, and strong economy. Hotels in Milwaukee offer a unique opportunity to capitalize on the city's tourism industry, which is driven by its picturesque lakefront location, numerous festivals, and world-class attractions like the Milwaukee Art Museum and Summerfest. As a hotel owner, you can cater to a diverse range of clients, from business travelers attending conferences at the Wisconsin Center to families visiting the Milwaukee County Zoo. With 4 hotels for sale in Milwaukee, there are plenty of options to choose from, each offering its own unique characteristics and investment opportunities.
Milwaukee's hotel market is characterized by its amenities, infrastructure, location, education, and geography. The city's hotels often feature modern amenities like fitness centers, restaurants, and meeting spaces, making them attractive to business travelers and tourists alike. Milwaukee's infrastructure, including the Milwaukee Regional Medical Complex, Milwaukee Mitchell International Airport, and the Interstate highway system, ensures easy accessibility and connectivity. The city's location on the shores of Lake Michigan and its proximity to major educational institutions like Marquette University and the University of Wisconsin-Milwaukee also make it an attractive destination for students, faculty, and staff. Additionally, the city's diverse neighborhoods, such as the Historic Third Ward and Bay View, offer a unique blend of culture, entertainment, and dining options. If you're considering investing in a hotel in Milwaukee, you can also explore other property types, such as restaurants, apartment buildings, and shopping centers, each with its own unique characteristics and investment opportunities. For example, restaurants in Milwaukee can capitalize on the city's thriving food scene, while apartment buildings can cater to the city's growing population of young professionals and students. Shopping centers, on the other hand, can benefit from the city's strong retail market and tourist traffic. Overall, Milwaukee offers a diverse range of investment opportunities, making it an attractive destination for investors and entrepreneurs alike.
What factors should I consider when buying a hotel in Milwaukee?
When considering buying a hotel in Milwaukee, there are several key factors to take into account, including:
- The local economy, which is driven by major industries such as manufacturing, breweries, and healthcare, and is home to Fortune 500 companies and professional sports teams, ensuring a steady stream of business travelers and tourists.
- The city's infrastructure, which features two major transportation hubs, Milwaukee Mitchell International Airport and Milwaukee Intermodal Station, providing easy access to the city and its amenities, as well as a network of Interstate highways and public transportation systems.
- The current market conditions, with 4 available listings of hotels, an average price per square foot of $173 USD, and an average size of 30,555 square feet, offering a range of options for investors and developers.
Additionally, it's essential to research and understand the local zoning laws, permits, and regulations, as well as the potential for growth and development in the area. Furthermore, exploring financing options, such as CRE loans, can help make your hotel investment a reality. For more information on commercial real estate loans, check out our article at CRE loans.
How is the value of a hotel for sale typically calculated?
When evaluating hotels for sale in Milwaukee, the value is typically calculated through a comprehensive CRE appraisal, which considers factors such as the property's income-generating potential, local market conditions, and the overall condition of the hotel. This process involves analyzing the hotel's financial performance, including its revenue, expenses, and cash flow, as well as its physical attributes, such as the average size of 30,555 square feet and largest size of 64,000 square feet, to determine its value, which can range from an average price per square foot of $173 USD to an average cap rate of 12%.
