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    Well-Maintained Hotel off Highway 62 Title is generated by Realmo AI

    360 US-62, Salem, AR 72576

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    Profitable, well-maintained 22-room hotel with high occupancy.

    Type:Hospitality
    Property size:
    8,425 SF
    Price / SF:
    $97/SF
    Added:
    Nov 23, 2022
    Days on Market:
    1277
    Last Refresh:
    May 19 at 9:12 pm

    Property Features for 360 US-62

    General Information

    Standard status
    Active
    Size
    8,425 SF
    Property subtype
    Hospitality

    Building Details

    Year Built
    1997

    We can help!

    Listing Contact
    Jerry George

    Listing agent Jerry George

    Listing office The Real Estate Group

    Listing date Nov 23, 2022

    Source Crexi

    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 The Real Estate Group

    HighLights

    • High occupancy and strong return for an owner‑operator.
    • Located directly off Highway 62, providing high visibility and traffic from truckers, contractors, and vacationers.
    • Recent improvements of $70‑80k, including a new roof and central heating and air.
    • Well‑maintained property in excellent condition.
    • Includes 22 air‑conditioned rooms with amenities like refrigerators, flat‑screen TVs, and complimentary Wi‑Fi.
    • On‑site professional property host/manager with own apartment.

    Overview

    This well-run hotel in Arkansas, located directly off Highway 62, has been under the same ownership and operation for many years. Recent improvements totaling approximately $70,000 - $80,000 have been made, including a new roof and updated central heating and air systems. The property is in excellent condition and has been well-maintained. The hotel experiences high occupancy and offers a strong return for an owner-operator. Its location provides significant traffic from truckers, contractors, and vacationers. The 8,425 square foot motel features 22 air-conditioned rooms, each equipped with refrigerators and flat-screen televisions. Complimentary wireless internet access and cable programming are available. Bathrooms include shower/tub combinations and complimentary toiletries. Microwaves and coffee/tea makers are provided, and daily housekeeping services are offered. A complimentary continental breakfast is served daily from 7:00 AM to 10:00 AM. The property is located approximately 15 minutes by car from a golf course on Turkey Mountain, 12.9 miles from Crown Lake, and 13.3 miles from Horseshoe Bend City Hall. Restaurants, bars, lounge, and dining options are available in town.
    Location Intelligence

    Current Use by Public Records

    Motels

    Similar Places Nearby

    • Cottonwood Inn — 360 US-62, Salem, AR 72576

    Map

    City
    Salem
    County
    Fulton
    State
    Arkansas
    Longitude
    -91.8589
    Latitude
    36.3515

    FAQs

    What type of property is this?
    Motel - Profitable, well-maintained 22-room hotel with high occupancy.
    Where is this motel located?
    The property is located at 360 US-62 Salem, AR.
    What is the asking price?
    The asking price for this property is $825,000.
    What are key features of this property?
    This property features: High occupancy and strong return for an owner‑operator.; Located directly off Highway 62, providing high visibility and traffic from truckers, contractors, and vacationers.; Recent improvements of $70‑80k, including a new roof and central heating and air.
    We can help!
    Contact for Pricing
    Please call us for current price
    and status of this listing
    Jerry George
    Learn More
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    Realmo Value Estimations

    Realmo estimates a property’s market value using a proprietary methodology that incorporates public data and user-submitted information. This cumulative value is generated by integrating a variety of conventional and innovative methods. 

    Disclaimer

    These figures are not official appraisals and should not be used as a substitute for a valuation performed by a licensed appraiser.
    Actual market value may differ due to factors not captured in the data. Estimates are offered for informational purposes only, and users should conduct independent research before making financial or investment decisions.
    By using this feature, you acknowledge that Realmo is not responsible for actions taken based on these estimates.

    AI approach

    Realmo AI Method estimates property value using machine learning models trained on millions of comparable listings, transactions, and market signals. It analyzes property features, location intelligence data, and current market dynamics to predict the most probable market value in real time.

    Realmo CapRate Calculation

    Realmo calculates the Capitalization Rate (Cap Rate) to help estimate a property's potential return on investment. The Cap Rate is a fundamental metric in commercial real estate that measures the relationship between a property's net operating income and its market value.

    How We Calculate Cap Rate

    Cap Rate Formula:
    Cap Rate (%) = (Net Operating Income / Property Value) × 100

    Net Operating Income (NOI) Formula:
    NOI = Area × Lease Rate × (1 - Vacancy Rate) × (1 - Operating Expense Ratio)

    Components

    Net Operating Income (NOI) represents the annual income a property generates after operating expenses:

    • Area: Building square footage from property records
    • Lease Rate: Annual $/sqft based on market data for the property type and geographic location
    • Vacancy Rate: Percentage of unoccupied space based on market data for the property type and location
    • Operating Expense Ratio: Operating costs as a percentage of income, varies by property type

    Property Value is derived from:

    • Recent sale price (if available)
    • Statistical models using comparable sales
    • AI-powered valuation estimates

    Example Calculation

    For a 100,000 sqft Office Building:

    • Lease Rate: $25.00/sqft/year (market data for Office in this area)
    • Vacancy Rate: 8% (market data for Office in this area)
    • Operating Expense Ratio: 35% (typical for Office properties)
    • Property Value: $15,000,000

    Step 1: Calculate NOI

    NOI = 100,000 × $25.00 × (1 - 0.08) × (1 - 0.35)
    NOI = 100,000 × $25.00 × 0.92 × 0.65
    NOI = $1,495,000/year

    Step 2: Calculate Cap Rate

    Cap Rate = ($1,495,000 / $15,000,000) × 100
    Cap Rate = 9.97%

    Property Type Considerations

    Net Operating Income calculations vary by property type due to different operating expense ratios:

    • Office: Higher expenses (30-40%) for HVAC, utilities, maintenance
    • Retail: Moderate expenses (25-35%) for common area maintenance
    • Industrial/Warehouse: Lower expenses (15-25%) for minimal tenant services
    • Multifamily: Moderate expenses (35-45%) including property management
    • Self-Storage: Lower expenses (25-35%) due to minimal maintenance

    Market lease rates and vacancy rates are specific to each property type and geographic location, reflecting local market conditions.

    Disclaimer

    These calculations are estimates for informational purposes only and should not be used as a substitute for professional financial analysis or appraisal.

    • Cap Rate calculations depend on market data that may change over time
    • Actual operating expenses, lease rates, and vacancy rates may differ from market averages
    • Individual property conditions, lease terms, and tenant quality significantly impact actual NOI
    • Property value estimates are approximations and not official appraisals
    • Cap rates vary widely by market, property condition, and investment risk profile

    Professional Guidance Recommended: Before making any investment or financial decisions, consult with licensed appraisers, commercial real estate brokers, and financial advisors who can evaluate your specific property and circumstances.
    By using this feature, you acknowledge that Realmo is not responsible for investment decisions or actions taken based on these estimates.

    Cap approach

    Capitalization Method calculates value based on estimated net operating income (NOI) and applying a market-based capitalization rate (cap rate), we estimate what a typical investor might be willing to pay for it.

    Comparable approach

    Comparable estimate is based on recent sales of similar nearby properties, adjusted for factors like size, condition, and location.

    Relative

    Relative property class coefficient uses factors that account for typical price differences between various asset types (e.g., retail vs. industrial) to provide a more accurate market-aligned estimate.

    Geo

    Comparable Sales Method, enhanced by Geo coefficients — location-based adjustment factors that reflect differences in price levels across neighborhoods, cities, or regions ensuring a more accurate, market-sensitive valuation.

    Stat Estimate

    This method estimates value based on actual market adjusted recent (~5 years) sales of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all similar sales ($/sqft) are above this value
    • Range-to: 75% of all similar sales ($/sqft) are below this value
    AI Estimate

    This method estimates value based on AI market estimation of comparable properties around by location and property type.

    • Ranges - area data calculated by industry standard IQR Outlier Removal Method
    • Range-from: 75% of all estimations ($/sqft) are above this value
    • Range-to: 75% of all estimations ($/sqft) are below this value
    Alternative use

    Estimate considers the property’s potential value if used for a different purpose-based on zoning, demand, and market feasibility.

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