51-Room Hotel with Manager
For Sale
$2,950,000
2352 Esplanade, Chico, CA 95926
Hospitality property featuring refreshed guest rooms and dedicated manager accommodations.
Property Size20,000 SF
Price / SF$147.50
Days on Market315
Property Features for 2352 Esplanade
General Information
Standard status
Active
Size
20,000 SF
Property subtype
General Commercial
Amenities
3
Building Details
Year Built
1900
Listing Agency:
Re/Max of Chico
(530) 896-9300
Listed By:
Dan Bosch · License #01236305
Source:
Xome
Added: Oct 20, 2025
Changed: Aug 29
Last Checked: Aug 29 at 7:31PM
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 Re/Max of Chico
Investment Insights
Based on property information with market context.
The Safari Inn is a 20,000-square-foot hotel property with 51 individual guest rooms and on-site manager’s quarters. Several rooms have received updates that include newer flooring, paint, and fixtures, providing completed improvements within the existing lodging operation. The property was built in 1900.
Located at 2352 Esplanade in Chico, the hotel offers walkable access to restaurants and shopping. Highway 99 is readily accessible, while Downtown Chico is a short drive away. The combination of guest accommodations, manager housing, and completed room updates defines the property’s current hospitality configuration.
Located at 2352 Esplanade in Chico, the hotel offers walkable access to restaurants and shopping. Highway 99 is readily accessible, while Downtown Chico is a short drive away. The combination of guest accommodations, manager housing, and completed room updates defines the property’s current hospitality configuration.
Key Highlights
- 51 individual guest rooms
- 20,000 square feet of hotel space
- Dedicated manager’s quarters
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
$125,400
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
4.25%
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%
$2,508,000
$2.5M
Cap Rate 7%
$1,791,429
$1.8M
Cap Rate 9%
$1,393,333
$1.4M
Market Conditions
NOI Build-Up for 20,000 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
$300.0K $15.00/SF
− Vacancy
−$36.0K −$1.80/SF
EGI
$264.0K $13.20/SF
− OpEx
−$138.6K −$6.93/SF
NOI
$125.4K $6.27/SF
Area
Chico, CA
Vacancy
12.00%
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%
$2,508,000
Cap Rate 7%
$1,791,429
Cap Rate 9%
$1,393,333
Alternative Uses
Best Use
Hotel Hospitality
$1.79M
$1.57M – $2.09M
NOI $125,400 @ 7.0% cap · market cap 4.25%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$4.04M
$3.53M – $4.71M
NOI $282,670 @ 7.0% cap · market cap 9.58%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
1,577
Businesses Nearby
Explore this area
Business Placement
Demographics for 95926, CA
41,259
Population
18,566
Households
2.2
Avg Household Size
31
Median Age
45%
College-Educated
96%
High-School Grad
7.8 sq mi
ZIP Area
5,290
Density / Sq Mi
$62,334
Median Household Income
$27,870
Median Earnings
$1,418
Median Rent
$462,900
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Hotel - Hospitality property featuring refreshed guest rooms and dedicated manager accommodations.
Where is this hotel located?
The property is located at 2352 Esplanade Chico, CA.
What is the asking price?
The asking price for this property is $2,950,000.
What are key features of this property?
This property features: 51 individual guest rooms; 20,000 square feet of hotel space; Dedicated manager’s quarters
