Lancaster Hotel Investment
For Sale
$11,000,000
43719 17th Street, Lancaster, CA 93534
Holiday Inn Express with 73 guestrooms in Lancaster, California.
Property Size40,414 SF
Lot Size1.64 Acres
Price / SF$272.18
Days on Market523
Property Features for 43719 17th Street
General Information
Standard status
Active
Size
40,414 SF
Lot size
1.64 Acres
Property subtype
General Commercial
Amenities
Window/Wall Unit
3
73 Parking Spaces.
Front Yard.
Building Details
Year Built
2004
Listing Agency:
KO TAI REALTY
(626) 285-8333
Listed By:
LILY WANG · License #01321428
Source:
Xome
Added: Mar 27, 2025
Changed: Aug 31
Last Checked: Aug 31 at 1:39PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of KO TAI REALTY
Investment Insights
Based on property information with market context.
This Holiday Inn Express hotel, presenting an investment opportunity, is located in Lancaster City, Los Angeles County, California. Constructed in 2004, the three-story hotel features an interior corridor design and comprises 73 guestrooms. The building spans 40,014 square feet on a 71,525-square-foot lot. Amenities include a mini-store, breakfast room, swimming pool, and fitness center, along with high-speed internet and Wi-Fi. The hotel offers comfortable rooms.
Key Highlights
- Established Holiday Inn Express Hotel in Lancaster City, Los Angeles County, California.
- Investment opportunity with an operating hotel.
- Substantial building size of 40,014 square feet on a 71,525 square foot lot.
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$364,890
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
3.32%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$7,297,800
$7.3M
Cap Rate 7%
$5,212,714
$5.2M
Cap Rate 9%
$4,054,333
$4.1M
Market Conditions
NOI Build-Up for 40,414 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$872.9K $21.60/SF
− Vacancy
−$104.8K −$2.59/SF
EGI
$768.2K $19.01/SF
− OpEx
−$403.3K −$9.98/SF
NOI
$364.9K $9.03/SF
Area
Lancaster, CA
Vacancy
12.00%
Lease Rate
$21.60 /SF/Yr
Expense Ratio
52.50%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$7,297,800
Cap Rate 7%
$5,212,714
Cap Rate 9%
$4,054,333
Alternative Uses
Best Use
Hotel Hospitality
$5.21M
$4.56M – $6.08M
NOI $364,890 @ 7.0% cap · market cap 3.32%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$12.69M
$11.11M – $14.81M
NOI $888,617 @ 7.0% cap · market cap 8.08%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,171
Businesses Nearby
Explore this area
Business Placement
Demographics for 93534, CA
43,906
Population
16,343
Households
2.7
Avg Household Size
34
Median Age
18%
College-Educated
81%
High-School Grad
19.0 sq mi
ZIP Area
2,311
Density / Sq Mi
$58,891
Median Household Income
$44,566
Median Earnings
$1,513
Median Rent
$339,900
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Hotel - Holiday Inn Express with 73 guestrooms in Lancaster, California.
Where is this hotel located?
The property is located at 43719 17th Street Lancaster, CA.
What is the asking price?
The asking price for this property is $11,000,000.
What are key features of this property?
This property features: Established Holiday Inn Express Hotel in Lancaster City, Los Angeles County, California.; Investment opportunity with an operating hotel.; Substantial building size of 40,014 square feet on a 71,525 square foot lot.
