Acquire a 93-key Holiday Inn Express & Suites with an adjoining income-producing retail portfolio in one of Southern California's strongest hospitality markets. This fee simple investment combines established hotel cash flow with high-margin retail income and offers significant upside through repositioning, renovation, and operational improvements.
The offering consists of a 93-room Holiday Inn Express & Suites operating under the globally recognised IHG brand together with a multi-tenant retail centre located on the same campus. The hotel generated T-12 revenue of $4,091,174 and T-12 NOI of $1,000,623, while the retail component contributes $324,392 in T-12 NOI with minimal management requirements. Combined, the portfolio delivers T-12 NOI of $1,325,015 and is offered at an approximate 6.5% blended cap rate. Buyers also have the flexibility to acquire the hotel and retail components separately.
Located directly on East Colorado Boulevard along Pasadena's iconic Rose Parade route, the property benefits from year-round demand generated by the Rose Bowl Stadium, Pasadena Convention Center, California Institute of Technology (Caltech), NASA's Jet Propulsion Laboratory, Huntington Hospital, Old Town Pasadena and numerous corporate, educational and cultural institutions. The hotel ranked #1 in RevPAR within its seven-property competitive set, highlighting its strong market position despite current transitionary performance.
The investment represents a compelling value-add opportunity. A Property Improvement Plan (PIP) following ownership transfer is expected to provide the platform for increased ADR, improved occupancy and higher profitability. Additional upside exists through enhanced revenue management, owner-operation, expanded ancillary revenue, meeting space utilisation and retail lease optimisation. Projected Year 3 stabilised NOI is estimated at $1,561,663 following renovation and market recovery.
The hotel is offered unencumbered by management, allowing an investor or experienced operator maximum flexibility. Full due diligence materials are available following execution of a confidentiality agreement.
