96-Room Hotel in Salisbury,
For Sale
$5,490,000
2701 N Salisbury Blvd, Salisbury, MD 21801
Two-story, 96-room hotel on US Route 13.
Property Size47,546 SF
Days on Market137
Property Features for 2701 N Salisbury Blvd
General Information
Standard status
Active
Size
47,546 SF
Class
C
Property subtype
Hospitality
Building Details
Building Size
47,546 SF
Year Built
1986
Listing Agency:
NAI Coastal - Salisbury
Listed By:
Chris Davis · License #302826
(443) 523-4539
Source:
Naicoastal
Added: Apr 24
Changed: Sep 4
Last Checked: Sep 7 at 7:31AM
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 NAI Coastal - Salisbury
Investment Insights
Based on property information with market context.
This two-story hotel, featuring 96 rooms, presents an investment opportunity in Salisbury, Maryland, within an opportunity zone. The property has undergone capital improvements, including major renovations to the rooms, roof, all interior hallways, and FF&E. Situated on US Route 13, the hotel is located in Salisbury's primary commercial corridor. It is approximately 8 miles from Salisbury Regional Airport and in close proximity to beaches. The location has a bike score of 42, indicating it is somewhat bikeable, a walk score of 50, indicating it is somewhat walkable, and a transit score of 16, indicating minimal transit options.
Key Highlights
- Investment opportunity located in an opportunity zone.
- 96‑room hotel in Salisbury, MD.
- Major renovations completed to rooms, roof, interior hallways, and FF&E.
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
$287,950
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
5.24%
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%
$5,759,000
$5.8M
Cap Rate 7%
$4,113,571
$4.1M
Cap Rate 9%
$3,199,444
$3.2M
Market Conditions
NOI Build-Up for 47,546 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
$713.2K $15.00/SF
− Vacancy
−$107.0K −$2.25/SF
EGI
$606.2K $12.75/SF
− OpEx
−$318.3K −$6.69/SF
NOI
$288.0K $6.06/SF
Area
Wicomico County, MD
Vacancy
15.00%
Lease Rate
$15.00 /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%
$5,759,000
Cap Rate 7%
$4,113,571
Cap Rate 9%
$3,199,444
Alternative Uses
Best Use
Hotel Hospitality
$4.11M
$3.60M – $4.80M
NOI $287,950 @ 7.0% cap · market cap 5.24%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$16.63M
$14.55M – $19.40M
NOI $1,164,236 @ 7.0% cap · market cap 21.21%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
397
Businesses Nearby
Explore this area
Business Placement
Demographics for 21801, MD
31,183
Population
12,140
Households
2.6
Avg Household Size
37
Median Age
34%
College-Educated
87%
High-School Grad
40.1 sq mi
ZIP Area
778
Density / Sq Mi
$67,140
Median Household Income
$36,290
Median Earnings
$1,058
Median Rent
$286,800
Median Home Value
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Hotel - Two-story, 96-room hotel on US Route 13.
Where is this hotel located?
The property is located at 2701 N Salisbury Blvd Salisbury, MD.
What is the asking price?
The asking price for this property is $5,490,000.
What are key features of this property?
This property features: Investment opportunity located in an opportunity zone.; 96‑room hotel in Salisbury, MD.; Major renovations completed to rooms, roof, interior hallways, and FF&E.
