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Hotel-Motel

Double Tree Conversion (Riverside Plaza Hotel)

701 Gordon Dr, Sioux City, IA 51101

Listing Price: $6,900,000

Cap Rate
19.10%
Number of Rooms
114
RevPAR
$85
Price/Room
$60,526
RRM
1.96
Year Built
1974

Investment Overview

As the exclusive representative of the seller, Marcus & Millichap's National Hospitality Division is pleased to present for sale to qualified investors the Riverside Plaza Hotel (‘Hotel’ or ‘Property’). The independent-branded Hotel is offered at $6,900,000 or $60,526 ($57,500 post-conversion) per key. The Riverside Plaza Hotel is located at 701 Gordon Drive in Sioux City, near the intersection of Highway 12 and Interstate 29. The 114-room Property is slated to convert to a 120-room DoubleTree and has approximately 110,000 square feet of space between six stories. Built in 1974, the Property sits on a 3.27-acre plot and maintains amenities such as an indoor pool and spa, fitness center, and Bar Louie – an on-site restaurant/bar. Sioux City, located in Woodbury and Plymouth Counties, is the fourth largest city in Iowa. The city is home to multiple cultural points of interest including Sioux City Art Center, Sergeant Floyd Monument, and Sioux City Public Museum. Sioux City’s riverfront location promoted the area to become the navigational head of the Missouri River, which provides cargo transportation to the surrounding region. Major industries include food processing, manufacturing, retail, military, and health care. The city's top employers are Tyson Fresh Meats, Seaboard Triumph Foods, Mercy Medical Center, and 185th Air Refueling Wing. The area also offers plenty of leisure attractions including the Lewis & Clark Interpretive Center, Tyson Event Center, Sioux City Hard Rock Casino, and the Sioux City Convention Center. In 2021, the Hotel recorded room revenues of over $1.3 million, while Bar Louie brought in over $1 million. The independent Hotel averaged an 81 percent RevPAR penetration from 2018 through 2020, presenting a new investor with the opportunity to acquire a well-positioned asset with an upside opportunity through revenue management strategies. Furthermore, once the impending PIP is completed, a new owner can expect to increase daily rates, leading to increased RevPAR and NOI flow-through.

Investment Highlights

  • Six-Story, 114-Room (120 Post-Conversion), Independent Hotel within the Sioux City Metropolitan Statistical Area
  • Highly Visible and Easily Accessible from Highway 12 and Interstate 29 – Two of the Most Trafficked Thoroughfares in Sioux City
  • Surrounded by Nationally Acclaimed Businesses, Retailers, Restaurants, and Entertainment Amenities
  • Average RevPAR Penetration Index of 81 Percent from 2018 through 2020, Presenting Upside Potential to Increase RevPAR through Renovations and Revenue Management Strategies

Broker of Record

  • Jon Ruzicka

    First Vice President Investments

    (952) 852-9700

    License(s) IA: B63379000

    Iowa

Hotel-Motel

Double Tree Conversion (Riverside Plaza Hotel)

Listing Price: $6,900,000

Cap Rate
19.10%
Number of Rooms
114
RevPAR
$85
Price/Room
$60,526
RRM
1.96
Year Built
1974

Investment Highlights

  • Six-Story, 114-Room (120 Post-Conversion), Independent Hotel within the Sioux City Metropolitan Statistical Area
  • Highly Visible and Easily Accessible from Highway 12 and Interstate 29 – Two of the Most Trafficked Thoroughfares in Sioux City
  • Surrounded by Nationally Acclaimed Businesses, Retailers, Restaurants, and Entertainment Amenities
  • Average RevPAR Penetration Index of 81 Percent from 2018 through 2020, Presenting Upside Potential to Increase RevPAR through Renovations and Revenue Management Strategies

Investment Overview

As the exclusive representative of the seller, Marcus & Millichap's National Hospitality Division is pleased to present for sale to qualified investors the Riverside Plaza Hotel (‘Hotel’ or ‘Property’). The independent-branded Hotel is offered at $6,900,000 or $60,526 ($57,500 post-conversion) per key. The Riverside Plaza Hotel is located at 701 Gordon Drive in Sioux City, near the intersection of Highway 12 and Interstate 29. The 114-room Property is slated to convert to a 120-room DoubleTree and has approximately 110,000 square feet of space between six stories. Built in 1974, the Property sits on a 3.27-acre plot and maintains amenities such as an indoor pool and spa, fitness center, and Bar Louie – an on-site restaurant/bar. Sioux City, located in Woodbury and Plymouth Counties, is the fourth largest city in Iowa. The city is home to multiple cultural points of interest including Sioux City Art Center, Sergeant Floyd Monument, and Sioux City Public Museum. Sioux City’s riverfront location promoted the area to become the navigational head of the Missouri River, which provides cargo transportation to the surrounding region. Major industries include food processing, manufacturing, retail, military, and health care. The city's top employers are Tyson Fresh Meats, Seaboard Triumph Foods, Mercy Medical Center, and 185th Air Refueling Wing. The area also offers plenty of leisure attractions including the Lewis & Clark Interpretive Center, Tyson Event Center, Sioux City Hard Rock Casino, and the Sioux City Convention Center. In 2021, the Hotel recorded room revenues of over $1.3 million, while Bar Louie brought in over $1 million. The independent Hotel averaged an 81 percent RevPAR penetration from 2018 through 2020, presenting a new investor with the opportunity to acquire a well-positioned asset with an upside opportunity through revenue management strategies. Furthermore, once the impending PIP is completed, a new owner can expect to increase daily rates, leading to increased RevPAR and NOI flow-through.

Broker of Record

  • Jon Ruzicka

    First Vice President Investments

    (952) 852-9700

    License(s): IA: B63379000

    Iowa

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