Quality Inn Bristol

Colliers, as exclusive representative of the seller, is pleased to present to qualified investors the Quality Inn Bristol, located at 3281 W State St, Bristol, TN 37620. The subject property is a 90-room, two-story, exterior-corridor, limited-service hotel constructed in 1978 and situated on approximately 2.85 acres with direct visibility and access to Interstate 81 (approximately 45,000 vehicles per day). The asset is offered fee simple, unencumbered by debt, and free of third-party management.

The asset serves as a central economic and lodging hub for the Tri-Cities region of Northeast Tennessee and Southwest Virginia. The market is positioned roughly 85 miles from Asheville, 115 miles from Knoxville, and 145 miles from Roanoke. A primary lodging driver is the world-famous Bristol Motor Speedway, which draws continuous out-of-town visitation for premier NASCAR events and generates an annual regional economic impact of approximately $450 million. Crucially, Bristol is an expanding entertainment and commercial corridor, anchored by a major new investment from the Hard Rock Hotel & Casino Bristol. The $550 million permanent resort and casino development is injecting thousands of new jobs into the local economy. This capital investment elevates the region's economic profile, generating a multi-year surge of construction-phase demand from engineers and contractors, followed by sustained leisure and corporate visitation that will drive significant growth in midweek occupancy and average daily rate. Furthermore, the local economy is stabilized by a robust healthcare and corporate sector, highlighted by the Ballad Health network, which employs approximately 13,800 people throughout the region.

The property’s competitive set is comprised of the Days Inn Bristol Parkway, Econo Lodge Near Motor Speedway Bristol, Red Roof Inn Bristol, Hampton Inn Bristol, and Motel 6 Bristol, VA. Recently, the subject property has operated at a noticeable discount to this competitive set, trailing its peers in both occupancy and rate penetration. This performance gap indicates a significant amount of uncaptured market share. While the hotel has historically demonstrated the capacity for strong top-line revenues and healthy profit margins, recent trailing performance has softened. However, pro forma projections highlight a clear path to stabilization. Through strategic rate management and operational enhancements over a five-year horizon, a new owner can regain fair market share by driving revenue growth and expanding bottom-line margins. Notably, the Quality Inn Bristol underwent a comprehensive, full-gut renovation in 2020, ensuring the asset remains in exceptional physical condition with minimal deferred maintenance.

Ultimately, the Quality Inn Bristol presents a compelling value-add investment opportunity to acquire a fee-simple asset in a highly connected market. The property's recent operational shortfalls and compressed net operating income are largely attributed to the current out-of-state, absentee ownership model. A more hands-on, proactive owner-operator will be ideally positioned to implement aggressive revenue management strategies and correct operational inefficiencies. By actively capitalizing on the region's robust demand drivers and pushing rates to align closer to the competitive set, a dedicated investor can dramatically increase top-line revenues and realize substantial long-term profitability.

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