Operating Motel With Conversion
For Sale
$3,500,000
981 State Route 940, White Haven, PA 18661
COMMERCIAL - White Haven, PA
Property Size18,000 SF
Lot Size7.89 Acres
Price / SF$194.44
Days on Market110
Property Features for 981 State Route 940
General Information
Property type
Commercial Sale
Property subtype
Other
Zoning description
Commercial
Subdivision
Kidder Township
Standard status
Active
APN
45-20-A14.02
Size
18,000 SF
Lot size
7.89 Acres
Taxes and HOA fees
Tax Year
2026
Tax Annual Amount
32320
Utilities
Heating system
Electric (Heating)
Cooling system
Ductless
Water source
Well
Building Details
Year built
1990
Floors in Building
2
Building materials
Frame
Listing Agency:
USA Realty
(570) 517-2428
Listed By:
Michael Feite Jr · License #RS322600
(570) 517-2428
Added: May 14
Changed: Aug 4
Last Checked: Aug 31 at 8:06AM
MLS# PM-141288
Copyright © 2026 Pocono Mountains Association of Realtors. All rights reserved. All information provided by the listing agent/broker is deemed reliable but is not guaranteed and should be independently verified.
Investment Insights
Based on property information with market context.
This property is an operating motel currently offering 66 or more rooms. The hotel is described as coming fully furnished with equipment. The seller notes ongoing plans to convert 20 of the current suites into 40 individual units, targeting a total of 86 units in the near future.
The property is located on State Route 940, just off the Pennsylvania Turnpike, in White Haven, Pennsylvania. The remarks cite proximity to Jack Frost and Big Boulder ski areas, Jack Frost National Golf, Pocono Raceway, and Lake Harmony.
It is presented as a multi-purpose hospitality property, with the highest and best use discussed as a short-term rental conversion or other retreat or educational uses, depending on a buyer’s vision.
The property is located on State Route 940, just off the Pennsylvania Turnpike, in White Haven, Pennsylvania. The remarks cite proximity to Jack Frost and Big Boulder ski areas, Jack Frost National Golf, Pocono Raceway, and Lake Harmony.
It is presented as a multi-purpose hospitality property, with the highest and best use discussed as a short-term rental conversion or other retreat or educational uses, depending on a buyer’s vision.
Key Highlights
- High‑traffic location off PA Turnpike (Rt 940) within the popular Pocono tourist region near Jack Frost/Big Boulder, Pocono Raceway, and Lake Harmony.
- Existing operating motel with potential for short‑term rental conversion (STR Resort) with digital lock code entry.
- Current configuration of 66+ furnished rooms with plans to convert 20 suites into 40 units, totaling 86 units.
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
$237,006
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
6.77%
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%
$4,740,120
$4.7M
Cap Rate 7%
$3,385,800
$3.4M
Cap Rate 9%
$2,633,400
$2.6M
Market Conditions
NOI Build-Up for 18,000 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
$594.0K $33.00/SF
− Vacancy
−$95.0K −$5.28/SF
EGI
$499.0K $27.72/SF
− OpEx
−$262.0K −$14.55/SF
NOI
$237.0K $13.17/SF
Area
Luzerne County, PA
Vacancy
16.00%
Lease Rate
$33.00 /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%
$4,740,120
Cap Rate 7%
$3,385,800
Cap Rate 9%
$2,633,400
Alternative Uses
Best Use
Hotel Hospitality
$3.39M
$2.96M – $3.95M
NOI $237,006 @ 7.0% cap · market cap 6.77%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$5.70M
$4.99M – $6.65M
NOI $399,168 @ 7.0% cap · market cap 11.40%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
9
Businesses Nearby
Explore this area
Business Placement
Demographics for 18661, PA
5,611
Population
3,644
Households
1.5
Avg Household Size
52
Median Age
21%
College-Educated
96%
High-School Grad
121.2 sq mi
ZIP Area
46
Density / Sq Mi
$68,795
Median Household Income
$42,500
Median Earnings
$1,231
Median Rent
$182,500
Median Home Value
Questions? Ask Rey
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Similar Off Market Nearby
- Country Place Inn and Suites — 942 PA-940, White Haven, PA 18661
- Econo Lodge Inn & Suites Lake Harmony - Pocono Mountains Area — 981 PA-940, White Haven, PA 18661
Frequently Asked Questions
What type of property is this?
Motel - Operating motel with 66+ rooms, fully furnished, and plans to convert suites into additional units.
Where is this motel located?
The property is located at 981 State Route 940 White Haven, PA.
What is the asking price?
The asking price for this property is $3,500,000.
What are key features of this property?
This property features: High‑traffic location off PA Turnpike (Rt 940) within the popular Pocono tourist region near Jack Frost/Big Boulder, Pocono Raceway, and Lake Harmony.; Existing operating motel with potential for short‑term rental conversion (STR Resort) with digital lock code entry.; Current configuration of 66+ furnished rooms with plans to convert 20 suites into 40 units, totaling 86 units.
