98 Room Independent Value Add Hotel 1030 Arsenal St 57 Room Hotel Watertown, NY 13601 $4,134,000 CAD ($72,526 CAD/Room)

Hospitality Associates is pleased to exclusively offer a 98-room independent hotel on approximately 5.14 acres in Watertown, New York. The property consists of two two-story concrete lodging buildings, an on-site manager’s apartment, and a separate retail building with direct frontage on Arsenal Street.
The hotel is located immediately off Interstate 81 at Exit 45, within Watertown’s primary retail and commercial corridor. Arsenal Street is the region’s dominant concentration of national retailers, restaurants, shopping centers and service businesses, making this one of the strongest hospitality locations in the Watertown market.
The property is currently operating and generating positive cash flow, with historical results averaging approximately $770,000 in annual revenue and $250,000 in NOI. Current 2026 performance is trending back toward stronger 2024 levels, with NOI projected to approach approximately $300,000.
The principal opportunity is to renovate and reposition the hotel’s 98 guestrooms, which are dated but located within well-maintained concrete buildings. A new owner can focus capital primarily on guest-facing improvements rather than major structural redevelopment.
Current ownership has already completed several operational improvements, including two new first-floor laundry rooms, a new lobby and office area, and new public restrooms, helping improve both operating efficiency and the guest experience.
The broader Watertown lodging market supports the repositioning opportunity. The market operates at approximately 50% occupancy and $110 ADR, while our stabilized projection assumes approximately 50% occupancy at only an $89 ADR. At those assumptions, the hotel has the potential to generate approximately $1.6 million in annual room revenue.
This provides a relatively conservative upside case, as the projection assumes market-level occupancy while maintaining an ADR materially below the broader Watertown market.
A potential conversion to Park Inn by Radisson, or another appropriate hotel brand, may provide additional upside through enhanced distribution, loyalty programs, revenue-management support and possible key-money assistance, subject to brand approval and final terms.
The property also includes a separate retail building positioned directly along Arsenal Street. While currently used as a cigar shop, the space provides flexibility for a future owner to lease to a new tenant, operate a complementary business, or use the building for another commercial purpose. An owner-operated cigar business could potentially generate approximately $40,000 in additional annual income.
Watertown benefits from a diversified lodging demand base driven by Fort Drum, Canadian travelers, regional commerce, Interstate 81 traffic and tourism associated with the Thousand Islands, Lake Ontario and Northern New York.
The offering provides investors with multiple value-creation opportunities through guestroom renovation, improved revenue management, potential brand conversion, ancillary retail income and stronger market positioning.