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220 Waterworks Rd, Somerset, PA, 15501

Red Roof Inn
$2,670,000

Key Information

Proforma Cap
12.27%
Tot. SF
43,010
Lot Size
2.17 Acres
$ per unit
$28,400
Units
94
Year Built
1990
Type
Hospitality

Highlights

  • Prime Turnpike Gate Location with Exceptional Visibility – Located directly adjacent to the I-76 Pennsylvania Turnpike gate with immediate on/off access and exposure to approximately 32,000 vehicles per day, driving consistent transient and drive-through demand.
  • Recently Renovated Asset with Strong Guest Reception – Renovated in 2024, the property offers an upgraded physical condition with limited near-term capital requirements and has achieved 4.4-star Google reviews post-renovation, reflecting improved guest satisfaction and early market acceptance.
  • Recession-Resilient Economy Lodging – Red Roof Inn’s value-oriented positioning historically performs well during economic slowdowns as travelers trade down, supporting durable demand in price-sensitive markets.
  • Diverse and Durable Demand Drivers – Demand is supported by Pennsylvania Turnpike traffic, UPMC-affiliated healthcare activity, regional employers, outdoor recreation, ski resorts, state parks, and visitation to the Flight 93 National Memorial.
  • Discounted Entry Pricing with Stabilization and Operational Upside – Priced below fully stabilized comparable properties, the offering reflects a pro forma operating profile with limited historical performance, creating upside as ADR and occupancy stabilize toward market averages under improved operational execution.
  • Attractive Yield Profile for Owner-Operators and Regional Investors – Pro forma underwriting indicates strong cash-flow potential at double-digit cap rates, supported by a straightforward exterior-corridor layout and limited amenities that favor hands-on operators seeking durable yield.

Photos

Location

Agents

Broker of Record

Kyle Matthews

License # RB068831 (PA)
Matthews Real Estate Investment Services, LLC
1600 West End Ave., Ste. 1500 Nashville, TN 37203