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Holiday Inn Express & Suites Canton, MS – Image Credit HVS
HVS Brokerage & Advisory is the exclusive advisory firm presenting the opportunity to acquire the 80-key Holiday Inn Express & Suites Canton, a limited-service hotel in Canton, Mississippi. The hotel recently underwent renovations and demonstrates promising growth potential, making it attractive for hands-on investors.
The hotel has consistently demonstrated stable top-line performance, averaging $1,628,454 in annual room revenue since 2022. The Trailing Twelve-Month (TTM) room revenue through February 2025 reached $1,867,125, marking a 5.31% increase over the amount earned in 2024. Over the past few years, the hotel has averaged an annual gross operating profit (GOP) of 36.9%, an average net operating income (NOI) of $416,915, and a 30.3% flow-through rate.
Currently absentee-owned, the hotel presents a clear opportunity for more involved investors to streamline operations, reduce expenses, and enhance profitability. Per the February 2025 STR data, the hotel ranks third out of five in terms of Average Daily Rate (ADR) and Revenue per Available Room (RevPAR), highlighting strong potential for rate growth.
With February 2025 occupancy up 33.5% year-to-date (YTD), a new owner can capitalize on this momentum by completing the Formula Blue Property Improvement Plan (PIP) and repositioning the hotel to compete more effectively on rate. HVS’s pro-forma projections anticipate stabilized room revenue in 2027 to conservatively exceed $2 million, with an NOI flow-through of $745,000 (rounded).
This opportunity allows investors to acquire an IHG-branded asset at a pre-PIP basis of $70,000 per key. The Formula Blue PIP is anticipated to cost approximately $1,600,000, or $20,000 per key (rounded), resulting in an all-in basis that remains well below current development costs for comparable upper-midscale assets.
Upon completion of the change-of-ownership PIP, a long-term franchise license agreement with InterContinental Hotels Group (IHG) can be expected, enhancing long-term brand security. IHG’s award-winning Rewards Club loyalty program, one of the largest in the hotel industry, offers members more choices to redeem their points than any other hotel loyalty program worldwide.
Canton, Mississippi, is experiencing robust economic development, with significant investments from Nissan and Amazon Web Services (AWS). Nissan announced a $661-million investment to transform its Canton facility into a “Nissan Intelligent Factory” to support the manufacture of next-generation electric vehicles. AWS announced a $10-billion investment to establish multiple data center complexes in Madison County, including a significant facility in Canton.
The hotel is strategically positioned along Soldier Colony Road, Canton’s well-known “Hotel Row”. It’s one of only three upper-midscale hotels in the market. It offers a unique opportunity for a new owner to lead the market regarding quality and service, especially as demand increases from incoming business travelers associated with major developments.
The hotel is being offered free and clear of any management encumbrances, providing an investor with the flexibility to revamp the current operator’s operational strategies.
Inquire at HVS.
