A hospitality asset has been listed for sale in the vibrant coastal city of Oceanside, California. The Motel 6, located at 3708 Plaza Dr., offers investors a compelling opportunity to acquire a well-established property for $19 million, or roughly $138,686 per key, in a region experiencing significant tourism growth.
This three-story Motel 6, developed in 1988 on a two-acre lot, comprises 137 guest rooms. It boasts a prime location near Camp Pendleton, a major United States Marine Corps base, providing a consistent source of potential clientele. The property’s convenient access to Interstate 5 makes it a popular choice for travelers exploring the greater San Diego area.
The Motel 6 Oceanside maintains the brand’s reputation for providing affordable accommodations and a no-frills guest experience. Amenities include an outdoor pool, free WiFi, self-parking, and pet-friendly policies, according to the hotel’s website. The property is within a short drive of popular attractions like Oceanside Pier, Carlsbad Premium Outlets, Legoland California, and the Flower Fields of Carlsbad.
The marketing of the property is managed by Kamlesh Patel of Colliers. He is located in the firm’s Ontario, Calif. office. The cap rate on the property is at 6.96 percent, and the net operating income is at $1.3 million.
Oceanside is a key contributor to the booming tourism industry in San Diego County. The county welcomed a record-breaking number of visitors last year, according to a recent Marcus & Millichap hospitality report for San Diego Meto Area in 2024. Hotel occupancy rates are projected to surpass pre-pandemic levels in 2024, a trend fueled by a robust schedule of cruise ship calls, conventions, and the enduring popularity of attractions like the San Diego Zoo, SeaWorld, and Legoland.
The county’s hospitality sector may receive an additional boost from residents of neighboring Southern California counties seeking budget-conscious weekend getaways, the report added. Furthermore, the opening of the Gaylord Pacific Resort & Convention Center promises to drive demand for hotel rooms, given its substantial convention space.
The Motel 6 Oceanside presents a value-driven investment opportunity in a market with strong fundamentals. Investors may find substantial interest in properties like this, particularly in the economy and upper-midscale segments, where occupancy rates are poised for significant growth.
Due to rising construction costs, properties that have undergone recent renovations may be highly sought after. Additionally, investors focused on long-term growth prospects may target properties located near major universities like San Diego State University, Cal State San Marcos, and the University of California San Diego, as record enrollments could lead to increased demand for accommodations from visiting families and guests, the Marcus & Millichap report added.
In addition, a pre-pandemic count of overnight stays and modest daily rate growth elevated San Diego’s RevPAR to $163.81, a metric only surpassed by San Francisco and New York.
