Skip to main content

Hotel-Motel

Best Western Plus Hudson Minneapolis MSA

1200 Gateway Blvd, Hudson, WI 54016

Listing Price: $5,950,000

Cap Rate
4.40%
Number of Rooms
68
RevPAR
$47
Price/Room
$87,500
RRM
5.00
Year Built
1998

Investment Overview

Marcus & Millichap is proud to have been chosen as Exclusive Broker and Advisor in regard to the marketing effort of the recently renovated and converted Best Western Plus in Hudson, WI. This acquisition provides the opportunity to acquire a turn key upper midscale hotel in the highly sought after and seldom available Minneapolis MSA. The hotel is a three-story structure built in 1998 and features 68 guest rooms. Current ownership went through an estimated $1,200,000 conversion renovation that concluded in 2019. Given the timing of the PIP completion and onset of the pandemic the hotel has not yet had an adequate opportunity to properly ramp up and stabilize as a Best Western Plus; however, due to its high-quality renovation it has already established itself as one of the market ADR leaders. Once stabilized projected room revenue figures are approaching $2,000,000; an experienced hotel owner should be able to expedite this path to stabilization. A new owner will be the direct beneficiary of all of the recent substantial capital expenditures and should expect minimal transfer PIP obligations. The Hudson market has historically been a well performing and high ADR market and that will be exaggerated even more so with the recent closure of an aging 100 room property that was pulling down market performance. The hotel itself is situated on a large parcel in a high traffic retail dense corridor. It features all amenities that every type of today’s traveler seeks including: indoor pool and whirlpool, complimentary parking, elevator, meeting room and separate boardroom, fitness center, ample outdoor green space with seating, spacious, breakfast area and an overall modern and contemporary feeling expected with a complete renovation. There is also an ideal room mix inclusive of a number of suites. Hudson is located in the Minneapolis/St. Paul MSA and is located just over the Minnesota/Wisconsin border. It is located off of the highly traveled Interstate 94. Given its location in the St. Croix valley Hudson has strong leisure and travel demand evident by its high ADR. The city is approximately a 20-minute drive to both downtown St. Paul and Minneapolis/St. Paul International Airport.

Investment Highlights

  • Extensive, All-Encompassing and High Quality Conversion PIP Performed in 2019 That Touched All Aspects of the Property; New Owner PIP is Expected to be Minimal to Non-Existent.
  • Renovation and Conversion Were Completed Just Prior to the Onset of Covid; Property is Just Now Being Given the Opportunity to Ramp Up and is Already Establishing Itself as an ADR Leader
  • Rare Opportunity to Acquire a Turn-Key Minneapolis MSA Upper Midscale Hotel For Considerably Below Replacement Cost
  • Aging One-Story 100 Room Hotel in the Market Was Recently Taken Out of Inventory Resulting In Even More Pricing Power in This High ADR Market
  • Desirable Location in a High Traffic Dense Retail Trade Area and Boasting Tall and Prominent Pole Signage
  • Owned by a Hands-Off First Time Hotel Owner Providing Operational Upside Potential for an Experienced Operator; a Long Term GM is in Place
  • Features All of the Amenities Today's Leisure, Business and Convention Travelers Seek: Elevator, Pool and Whirlpool, Modern and Contemporary Guestroom Finishes, Fitness Center, Outdoor Green Space with High End Seating, Spacious Breakfast Area, Convenient Meeting Room and Separate Board Room.

Exclusively Listed By

  • Jon Ruzicka

    First Vice President Investments

    (952) 852-9767

    Email Jon

    License(s): MN: 40583288, IA: B63379000, ND: 10032, WI: 76173-94, SD: 17724, NE: 20200223

    Minneapolis

  • Jake M. Erickson

    Senior Associate

    (952) 852-9721

    Email Jake

    License(s): MN: 40486025, IA: S66396000, WI: 89877-94

    Minneapolis

  • Jared Plamann

    Associate

    (952) 852-9745

    Email Jared

    License(s): MN: 40605209, WI: 89876-94

    Minneapolis

  • Joseph Ferguson

    Associate

    (952) 852-9769

    Email Joseph

    License(s): MN: 40737246

    Minneapolis

Broker of Record

  • Todd Lindblom

    First Vice President/Regional Manager

    (262) 364-1900

    License(s) WI: 56163-90

    Wisconsin

Financing By

Hotel-Motel

Best Western Plus Hudson Minneapolis MSA

Listing Price: $5,950,000

Cap Rate
4.40%
Number of Rooms
68
RevPAR
$47
Price/Room
$87,500
RRM
5.00
Year Built
1998

Investment Highlights

  • Extensive, All-Encompassing and High Quality Conversion PIP Performed in 2019 That Touched All Aspects of the Property; New Owner PIP is Expected to be Minimal to Non-Existent.
  • Renovation and Conversion Were Completed Just Prior to the Onset of Covid; Property is Just Now Being Given the Opportunity to Ramp Up and is Already Establishing Itself as an ADR Leader
  • Rare Opportunity to Acquire a Turn-Key Minneapolis MSA Upper Midscale Hotel For Considerably Below Replacement Cost
  • Aging One-Story 100 Room Hotel in the Market Was Recently Taken Out of Inventory Resulting In Even More Pricing Power in This High ADR Market
  • Desirable Location in a High Traffic Dense Retail Trade Area and Boasting Tall and Prominent Pole Signage
  • Owned by a Hands-Off First Time Hotel Owner Providing Operational Upside Potential for an Experienced Operator; a Long Term GM is in Place
  • Features All of the Amenities Today's Leisure, Business and Convention Travelers Seek: Elevator, Pool and Whirlpool, Modern and Contemporary Guestroom Finishes, Fitness Center, Outdoor Green Space with High End Seating, Spacious Breakfast Area, Convenient Meeting Room and Separate Board Room.

Investment Overview

Marcus & Millichap is proud to have been chosen as Exclusive Broker and Advisor in regard to the marketing effort of the recently renovated and converted Best Western Plus in Hudson, WI. This acquisition provides the opportunity to acquire a turn key upper midscale hotel in the highly sought after and seldom available Minneapolis MSA. The hotel is a three-story structure built in 1998 and features 68 guest rooms. Current ownership went through an estimated $1,200,000 conversion renovation that concluded in 2019. Given the timing of the PIP completion and onset of the pandemic the hotel has not yet had an adequate opportunity to properly ramp up and stabilize as a Best Western Plus; however, due to its high-quality renovation it has already established itself as one of the market ADR leaders. Once stabilized projected room revenue figures are approaching $2,000,000; an experienced hotel owner should be able to expedite this path to stabilization. A new owner will be the direct beneficiary of all of the recent substantial capital expenditures and should expect minimal transfer PIP obligations. The Hudson market has historically been a well performing and high ADR market and that will be exaggerated even more so with the recent closure of an aging 100 room property that was pulling down market performance. The hotel itself is situated on a large parcel in a high traffic retail dense corridor. It features all amenities that every type of today’s traveler seeks including: indoor pool and whirlpool, complimentary parking, elevator, meeting room and separate boardroom, fitness center, ample outdoor green space with seating, spacious, breakfast area and an overall modern and contemporary feeling expected with a complete renovation. There is also an ideal room mix inclusive of a number of suites. Hudson is located in the Minneapolis/St. Paul MSA and is located just over the Minnesota/Wisconsin border. It is located off of the highly traveled Interstate 94. Given its location in the St. Croix valley Hudson has strong leisure and travel demand evident by its high ADR. The city is approximately a 20-minute drive to both downtown St. Paul and Minneapolis/St. Paul International Airport.

Exclusively Listed By

  • Jon Ruzicka

    First Vice President Investments

    (952) 852-9767

    Email Jon

    License(s): MN: 40583288, IA: B63379000, ND: 10032, WI: 76173-94, SD: 17724, NE: 20200223

    Minneapolis

  • Jake M. Erickson

    Senior Associate

    (952) 852-9721

    Email Jake

    License(s): MN: 40486025, IA: S66396000, WI: 89877-94

    Minneapolis

  • Jared Plamann

    Associate

    (952) 852-9745

    Email Jared

    License(s): MN: 40605209, WI: 89876-94

    Minneapolis

  • Joseph Ferguson

    Associate

    (952) 852-9769

    Email Joseph

    License(s): MN: 40737246

    Minneapolis

Broker of Record

  • Todd Lindblom

    First Vice President/Regional Manager

    (262) 364-1900

    License(s): WI: 56163-90

    Wisconsin

Financing By

MM Texture Background
MM Textured Background Lower