HOTEL FOR SALE Norsemen Inn, Camroseimages1.loopnet.com/d2/H4HBtC5z5xexSJyD_vZR2j-lvYxn9fF2Iq94nUVfWjA/document.pdfBanquet Hall, Odin Dining Room, Gravity Lounge, Tap Room Bar and
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A full-service hotel on 3.65 acres of land located in the growing city of Camrose, Alberta. Concrete and steel frame with a building area of 65,000 square feet and 75 modern guestrooms including six upgraded suites. On-site amenities include a restaurant, dining room, lounge, brewpub, and banquet hall. Excellent location near four provincial highways. $5,800,000
Net Income $633,636 $657,182 $1,080,477 $327,686 $297,274
Economic GrowthAccording to the Conference Board of Canada, the economy of Alberta is expected to have the highest level of economic growth in the country. This is due to a recovery in energy markets, a vibrant agricultural sector, and increasing economic diversity. Economic growth according to the Conference Board of Canada and the price per barrel of oil (WTI US$) over the past four years are detailed below.
Financial PerformanceThe financial performance for the property weakened during the economic recession of 2015 and 2016 but are recovering in the current fiscal year. For the first three months of Fiscal 2018 (August to October 2017), gross revenue was approximately $1.225 million compared to approximately $1.160 million for the first three months of Fiscal 2017. The historical performance of the property (Fiscal Year ending July 31) is detailed in the following table.
$5,800,000Listing Price:
The listing price implies a price per room of $77,333 and a gross income multiplier of 1.30 based on the Fiscal 2017 performance. The five-year average net operating income of $599,251 implies a capitalization rate of 10.33%.