The Mogharebi Group has advised a Utah-based private investor on the $8.9 million sale of a 156-key select-service hotel portfolio in Cedar City, UT.
The portfolio consists of the 106-room Quality Inn Cedar City – University Area and the 50-room Americas Best Value Inn Cedar City, which are located within one block of each other directly off of U.S. Interstate 15. The interstate is one of the West’s most-traveled north/south corridors stretching from Alberta, Canada, to San Diego. Cedar City serves as a resting stop on the I-15 for the millions of visitors traveling to the “Mighty 5 National Parks”—Arches, Bryce Canyon, Canyonlands, Capitol Reef and Zion. The two hotels are also popular among families visiting the 12,000 students enrolled at Southern Utah University, which is less than two miles away, according to the company.
“Hotels in the region are exceeding pre-COVID levels in terms of occupancy and RevPAR, particularly in Cedar City, which is performing better than most hotels in Utah,” said Adam Gatto, SVP, Mogharebi, who leads the firm’s newly formed hospitality practice out of the Salt Lake City office. “This is reflected in the increasing investor appetite for hotels located near the national parks and Utah’s famed ski resorts. We were able to attract numerous bidders immediately upon putting the portfolio on the market and ultimately advised the seller to accept an offer from a local investor with significant holdings in the region.”
Both properties have been well maintained by the seller, who has owned them for more than a decade, according to Gatto.
Built in 1984 and renovated in 2014, the Quality Inn Cedar City – University Area consists of two two-story buildings situated on three parcels totaling 2.03 acres. Guest facilities include a fitness center, indoor heated swimming pool and business center.
Built in 1998 and renovated in 2004, the Americas Best Value Inn Cedar City is a two-story building situated on two parcels totaling 1.69 acres. Guest facilities include an outdoor swimming pool and indoor corridors.
The property was co-listed with Kip Paul, vice chairman, investment sales with Cushman & Wakefield.
