Sheraton Louisville Riverside
The Sheraton Louisville Riverside is being offered for sale to provide a qualified buyer with an opportunity to acquire a large-scale, Marriott-branded full-service hotel at an attractive basis and execute a clearly defined value-add repositioning strategy.
180-Key Full-Service Hotel for Sale
Business Name
Sheraton Louisville Riverside
Industry
Website
Address
Country: United States
Address Line 1: 700 West Riverside Drive
Address Line 2:
City: Jeffersonville
State: Indiana
ZIP Code: 47130
Years in Business
37
Business For Sale
Sales Price
$14,500,000
Describe Your Business
Sheraton Louisville Riverside is a 180-key full-service hotel for sale in Jeffersonville, Indiana, strategically located along the Ohio River directly across from downtown Louisville, Kentucky. The Marriott-branded Sheraton hotel presents an attractive hotel investment opportunity for hospitality investors, hotel operators, private equity groups, family offices, real estate investment firms, and strategic buyers seeking a value-add hotel acquisition in the Louisville metropolitan area.
The property was originally built in 1989 and underwent a major renovation in 2019. It currently operates as a full-service Sheraton hotel with approximately 180 guest rooms, indoor and outdoor pools, fitness facilities, restaurant and bar/lounge operations, meeting space, business amenities, and approximately 6,000 square feet of meeting space.
The hotel is offered for $14.5 million, representing approximately $80,556 per key, providing an attractive basis relative to replacement cost for a full-service branded hotel. The property currently generates approximately $4.24 million in annual revenue and $1.16 million in T-12 NOI, representing an approximately 8.0% in-place capitalization rate.
The investment thesis is centered on value-add hotel acquisition and hospitality repositioning. Current occupancy of approximately 38.1% provides substantial room for operational improvement, while current ADR of approximately $169 demonstrates existing pricing power. The business plan contemplates a roughly $5 million Property Improvement Plan (PIP), phased renovations, revenue-management improvements, enhanced food and beverage operations, and stronger occupancy capture.
The hotel benefits from its proximity to downtown Louisville, the Ohio River, Kentucky Derby demand, convention activity, healthcare, logistics, bourbon tourism, corporate headquarters, and other major Louisville-area demand generators.
This opportunity may appeal to buyers searching for hotels for sale in Louisville, Louisville hotels for sale, Indiana hotels for sale, Kentucky hotel investment opportunities, full-service hotels for sale, Sheraton hotels for sale, Marriott hotels for sale, value-add hotel investments, hospitality real estate, hotel acquisition opportunities, and commercial real estate investment opportunities.
Why Are You Selling?
The Sheraton Louisville Riverside is being offered for sale to provide a qualified buyer with an opportunity to acquire a large-scale, Marriott-branded full-service hotel at an attractive basis and execute a clearly defined value-add repositioning strategy.
The property currently operates at approximately 38.1% occupancy, creating significant potential for an experienced hotel operator to improve occupancy, ADR, RevPAR, operating margins, and net operating income. The acquisition strategy includes a planned approximately $5 million Property Improvement Plan, representing approximately $27,800 per key.
The planned repositioning is expected to address guestrooms, lobby areas, food and beverage facilities, and other brand-required improvements while simultaneously creating an opportunity to improve the hotel's market positioning.
The current T-12 NOI of approximately $1.16 million provides an existing cash-flow base. The business plan targets stabilized NOI of approximately $3.1 million, representing substantial potential value creation through improved operations and property repositioning.
Additional downside protection is provided by approximately $420,000 of annual rental income from three existing ground-floor tenants.
The Louisville hospitality market benefits from multiple demand generators, including the Kentucky Derby, convention activity, healthcare, logistics, bourbon tourism, corporate travel, and major employers. The hotel's location across the Ohio River from downtown Louisville provides access to both Indiana and Kentucky demand.
The sale may be particularly attractive to hotel investors, hospitality private equity firms, family offices, hotel REITs, institutional investors, Marriott franchise operators, value-add real estate investors, and experienced hotel owners seeking a repositioning opportunity.
How Will the Funds be Used?
The acquisition capital will be used to purchase the Sheraton Louisville Riverside and execute the property's planned value-add business plan.
Approximately $5 million is anticipated for the Property Improvement Plan, including renovations to guestrooms, lobby areas, food and beverage facilities, soft goods, select hard goods, and other brand-aligned improvements.
Additional capital may be allocated toward:
Guestroom renovations
Lobby modernization
Food and beverage improvements
Furniture, fixtures and equipment
Property Improvement Plan requirements
Revenue-management technology
Sales and marketing
Corporate account development
Convention and group-sales initiatives
Operational improvements
Guest-experience enhancements
Working capital
Property maintenance
Brand-standard improvements
Occupancy growth initiatives
ADR optimization
RevPAR growth
Debt-service requirements
Strategic capital reserves
The objective is to increase occupancy toward approximately 65% or higher, improve ADR toward the $190–$210 range indicated by the competitive set, increase RevPAR toward approximately $125+, and grow NOI toward the approximately $3.1 million stabilized target.
Annual Revenue
$1M–$5M
Timeline
Immediately
Primary Contact Name
First Name: Majid
Last Name: Radaei
Email: majid@radcre.com
Phone Number: (818) 334-2111
Link
Notes
Offered by RAD Commercial Realty. Qualified buyers may be required to execute an NDA before receiving the complete due-diligence package and secure deal-room materials. The investment opportunity should be independently evaluated by prospective purchasers, including verification of financial performance, franchise requirements, Property Improvement Plan costs, market assumptions, financing terms, projected NOI, and repositioning projections.
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