Budget Hotel Redevelopment
For Sale
Contact for pricing
6911 Pensacola Blvd., Pensacola, FL 32505
Two-story 121-room hotel for sale on a major boulevard with extensive roadside frontage.
Property Size56,907 SF
Lot Size4.36 Acres
Price / SF$67.65
Days on Market18
Property Features for 6911 Pensacola Blvd.
General Information
Standard status
Active
Size
56,907 SF
Lot size
4.36 Acres
Property subtype
LAND
Site & Location
Traffic Count
41,500 vehicles/day
Highway Access
Yes
Road Access
Yes
Building Details
Stories
2
Listing Agency:
NAI Pensacola
(850) 450-5126
Listed By:
John Griffing, ALC, CRE, SIOR
(850) 450-5126
Source:
Moodyscre
Added: Jul 21
Changed: Jul 26
Last Checked: Aug 6 at 12:18PM
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 Pensacola
Investment Insights
Based on property information with market context.
6911 Pensacola Boulevard is an operating, two-story budget hotel improved with 121 rooms totaling approximately 56,907 square feet. The property is being marketed primarily for redevelopment potential and highest-and-best-use, subject to zoning, governmental approvals, and buyer due diligence.
The site offers approximately 255 feet of frontage along Pensacola Boulevard, providing visibility to approximately 41,500 vehicles per day. It is positioned minutes from the Interstate 10 interchange, where traffic volumes are approximately 91,000 vehicles per day, and sits along an established automotive retail and service corridor with major dealerships, national hotel brands, restaurants, retailers, and service-oriented businesses.
The surrounding five-mile trade area is supported by approximately 156,887 residents and a daytime population of approximately 167,460, with about 7,300 businesses and more than 90,725 employees within five miles. Reported 2026 trade-area sales total approximately $14.751 billion.
The site offers approximately 255 feet of frontage along Pensacola Boulevard, providing visibility to approximately 41,500 vehicles per day. It is positioned minutes from the Interstate 10 interchange, where traffic volumes are approximately 91,000 vehicles per day, and sits along an established automotive retail and service corridor with major dealerships, national hotel brands, restaurants, retailers, and service-oriented businesses.
The surrounding five-mile trade area is supported by approximately 156,887 residents and a daytime population of approximately 167,460, with about 7,300 businesses and more than 90,725 employees within five miles. Reported 2026 trade-area sales total approximately $14.751 billion.
Key Highlights
- Operating two‑story 121‑room budget hotel totaling approximately 56,907 SF
- Approximately 255 ft of frontage on Pensacola Boulevard with exposure to approximately 41,500 vehicles per day
- Minutes from the I‑10 interchange with approximately 91,000 vehicles per day on I‑10
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
$125,337
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
3.26%
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%
$2,506,740
$2.5M
Cap Rate 7%
$1,790,529
$1.8M
Cap Rate 9%
$1,392,633
$1.4M
Market Conditions
NOI Build-Up for 56,907 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
$628.3K $11.04/SF
− Vacancy
−$364.4K −$6.40/SF
EGI
$263.9K $4.64/SF
− OpEx
−$138.5K −$2.43/SF
NOI
$125.3K $2.20/SF
Area
Escambia County, FL
Vacancy
58.00%
Lease Rate
$11.04 /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%
$2,506,740
Cap Rate 7%
$1,790,529
Cap Rate 9%
$1,392,633
Alternative Uses
Best Use
Hotel Hospitality
$1.79M
$1.57M – $2.09M
NOI $125,337 @ 7.0% cap · market cap 3.26%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$16.70M
$14.61M – $19.49M
NOI $1,169,101 @ 7.0% cap · market cap 30.37%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
41,500 VPD
Traffic count
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
298
Businesses Nearby
Explore this area
Business Placement
Demographics for 32505, FL
28,671
Population
12,278
Households
2.3
Avg Household Size
36
Median Age
14%
College-Educated
82%
High-School Grad
13.0 sq mi
ZIP Area
2,205
Density / Sq Mi
$41,039
Median Household Income
$27,950
Median Earnings
$1,053
Median Rent
$120,300
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Hotel - Two-story 121-room hotel for sale on a major boulevard with extensive roadside frontage.
Where is this hotel located?
The property is located at 6911 Pensacola Blvd. Pensacola, FL.
What is the asking price?
The asking price for this property is $3,850,000.
What are key features of this property?
This property features: Operating two‑story 121‑room budget hotel totaling approximately 56,907 SF; Approximately 255 ft of frontage on Pensacola Boulevard with exposure to approximately 41,500 vehicles per day; Minutes from the I‑10 interchange with approximately 91,000 vehicles per day on I‑10
