The Alexander Hotel-Boutique Hotel Renovation 2249 N Palm Canyon Dr 10 Room Hotel Palm Springs, CA 92262 $2,532,150 CAD ($253,215 CAD/Room)

The Alexander Hotel at 2249 Palm Canyon offers an excellent opportunity to renovate an existing, vacant seven-room hotel property on approximately a half-acre, with frontage on the main highway in Palm Springs, California. The existing plans and expired permits contemplate a renovation into a 10-room boutique hotel, with a fully renovated bar and restaurant, and an outdoor bar by the pool. Additional revenue can be generated by installing daybeds and cabanas, establishing a day spa in a perfect area next to the existing reception area.

Palm Springs remains a highly seasonal destination, with demand concentrated in the cooler winter and spring months. Visitors continue to be drawn by the area's resort-oriented offering, golf amenities, and event-driven calendar. Group and meeting activity remains an important demand pillar, generating roughly 240,000 room nights in 2024, with 2025 bookings ahead of 2024.

Leisure demand continues to anchor hotel performance in the Palm Springs submarket, even as growth has moderated from recent peaks. Over the 12 months ending December, RevPAR remained positive, increasing 3.4%.

Seller was given estimates of approximately $1.2 million to $1.5 million to complete the rehab. The seller was advised that it would be relatively simple and fast to get the expired permits re-approved. Boutique hotels in Palm Springs consistently attract strong demand, making them a desirable investment. Upon completion of the renovation, owners can anticipate robust cash flow and excellent performance in this thriving hospitality market.

Price: $1,850,000. Seller has an appraisal showing a completed value of $5.9 million after the renovation is complete and the hotel is open. This solves to a potential profit of approximately $2.5 million. Buyer to verify all information.