Lexington Hospitality Asset For
For Sale
Contact for pricing
5531 Athens Boonesboro Rd, Lexington, KY 40509
59-room hotel with recent renovations and strong location.
Property Size36,327 SF
Lot Size1.90 Acres
Price / SF$79.83
Days on Market170
Property Features for 5531 Athens Boonesboro Rd
General Information
Standard status
Active
Size
36,327 SF
Lot size
1.90 Acres
Property subtype
Hospitality
Zoning
B-5P
Building Details
Year Built
1995
Listing Agency:
Keller Williams Realty Louisville
Listed By:
Krisi Patel · License #30210
Source:
Crexi
Added: Mar 3
Changed: Aug 8
Last Checked: Jul 23 at 8:39AM
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 Keller Williams Realty Louisville
Investment Insights
Based on property information with market context.
The hospitality asset at 5531 Athens Boonesboro Rd, Lexington, KY 40509, is a nationally affiliated hotel opportunity located in a strong commercial corridor. Constructed in 1995, this interior corridor property features 59 guest rooms and underwent a comprehensive Property Improvement Plan (PIP) in 2021 to meet current brand standards. The hotel includes updated guest rooms and refreshed common areas, along with a fitness center, a complimentary breakfast area, and an indoor pool. The property is located directly off I-75, providing visibility and accessibility. It is near Lexington’s new professional soccer stadium and less than seven miles from Downtown Lexington, placing it near the University of Kentucky, medical facilities, equine industry operations, retail centers, and regional tourism attractions. The property sits on approximately 1.9 acres and is zoned B-5, allowing continued hospitality use. The asset benefits from brand recognition, an established reservation system, and a customer base that supports occupancy and revenue performance. This offering represents a value-add hospitality opportunity with an anticipated opportunity for future brand conversion that may allow for strategic repositioning and enhanced revenue potential. The property size is 36327 square feet.
Key Highlights
- Nationally affiliated hotel with recent 2021 PIP ensuring modern brand standards.
- Strategically located directly off I‑75, near Lexington's new soccer stadium and less than 7 miles from Downtown Lexington, providing excellent visibility and accessibility.
- Features 59 updated guest rooms, refreshed common areas, fitness center, complimentary breakfast area, and indoor pool.
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
$218,659
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
7.54%
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%
$4,373,180
$4.4M
Cap Rate 7%
$3,123,700
$3.1M
Cap Rate 9%
$2,429,544
$2.4M
Market Conditions
NOI Build-Up for 36,327 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
$523.1K $14.40/SF
− Vacancy
−$62.8K −$1.73/SF
EGI
$460.3K $12.67/SF
− OpEx
−$241.7K −$6.65/SF
NOI
$218.7K $6.02/SF
Area
ZIP 40509
Vacancy
12.00%
Lease Rate
$14.40 /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%
$4,373,180
Cap Rate 7%
$3,123,700
Cap Rate 9%
$2,429,544
Alternative Uses
Best Use
Hotel Hospitality
$3.12M
$2.73M – $3.64M
NOI $218,659 @ 7.0% cap · market cap 7.54%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$7.57M
$6.62M – $8.83M
NOI $529,805 @ 7.0% cap · market cap 18.27%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Location Intelligence
Trade Area within ½ mile
161
Businesses Nearby
Explore this area
Business Placement
Demographics for 40509, KY
44,572
Population
19,802
Households
2.3
Avg Household Size
36
Median Age
57%
College-Educated
95%
High-School Grad
47.8 sq mi
ZIP Area
932
Density / Sq Mi
$89,429
Median Household Income
$52,489
Median Earnings
$1,317
Median Rent
$338,200
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 - 59-room hotel with recent renovations and strong location.
Where is this hotel located?
The property is located at 5531 Athens Boonesboro Rd Lexington, KY.
What is the asking price?
The asking price for this property is $2,900,000.
What are key features of this property?
This property features: Nationally affiliated hotel with recent 2021 PIP ensuring modern brand standards.; Strategically located directly off I‑75, near Lexington's new soccer stadium and less than 7 miles from Downtown Lexington, providing excellent visibility and accessibility.; Features 59 updated guest rooms, refreshed common areas, fitness center, complimentary breakfast area, and indoor pool.
