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Hotel-Motel

Super 8 by Wyndham Rapid City Rushmore Road

2520 Tower Rd, Rapid City, SD 57701

Listing Price: $3,400,000

Cap Rate
7.85%
Number of Rooms
98
RevPAR
$33
Price/Room
$34,694
RRM
2.95
Year Built
1977

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 Super 8 by Wyndham Rapid City Rushmore Rd (‘Hotel’ or ‘Property’). The Wyndham Hotels & Resorts-branded Hotel is offered at $3,400,000 or $34,694 per key. The Super 8 by Wyndham Rapid City Rushmore Road is located at 2520 Tower Road in Rapid City, South Dakota just off Highway 16. The 98-room, 3-story pair of buildings was built in 1977 and sits on a 1.34-acre plot. With approximately 34,769 square feet between each of the buildings’ three floors, the Property maintains a wide array of common area amenities including a business center, laundry facility, and parking space that can accommodate buses and trucks. Rapid City, the county seat of Pennington County, is the second-most populous city in South Dakota. The Rapid City Regional Airport is 10.8 miles from the Property and schedules flights with three major airlines to and from Salt Lake City, Dallas-Fort Worth, Denver, Minneapolis, Phoenix, and Chicago. Boasting an unemployment rate 3 percent lower than the national average and a growing job market, Rapid City’s fast-paced economy mostly relies on the healthcare industry. This is largely a result of the city’s position as the major healthcare center for five of the states that surround South Dakota. Nationally acclaimed for clinical excellence, Monument Health Rapid City Hospital is easily the most notable health care center. While Rapid City largely anchors its economy in the health care and military fields, the city is packed with attractions and sites that drive tourism. Tourism makes up roughly an eighth of the city’s economic contribution, largely due to Rapid City’s proximity to the tourist sites that pepper the region. Just over 20 miles south of the city, Mount Rushmore is among Rapid City’s top tourist destinations. The larger region in which Mount Rushmore lies, the Black Hills National Forest, is also filled with national monuments, trails, and parks. Among the most popular include the Crazy Horse National Monument, Jewel Cave National Monument, Custer State Park, and Wind Cave National Park. Outside of the popular national monuments, Rapid City is also home to attractions like Dinosaur Park, Art Alley, Chapel in the Hills, Storybook Island, and the ever-buzzing Main Street Square. In 2021, the Hotel recorded a RevPAR of $32.81 and room revenues over $1.15 million. With a 77 percent RevPAR penetration index, the Hotel’s revenues have plenty of room to grow. An experienced owner-operator can expect to surpass the STR-defined competitive set through revenue management strategies and cost control initiatives. Additionally, completion of the impending property improvement plan would present a substantial value add opportunity and assist new ownership in garnering real rate growth.

Investment Highlights

  • Three-Story, 98-Room, Interior-Corridor, Wyndham Hotels & Resorts-Branded Hotel
  • Priced Below Replacement Costs at $34,694 Per Key
  • Highly Visible and Easily Accessible from South Highway 16 – One of the Most Trafficked Thoroughfares in Rapid City Which Runs Through the Heart of Rapid City

Exclusively Listed By

Broker of Record

  • Jon Ruzicka

    First Vice President Investments

    (952) 852-9700

    License(s) SD: 17724

    South Dakota

Financing By

Hotel-Motel

Super 8 by Wyndham Rapid City Rushmore Road

Listing Price: $3,400,000

Cap Rate
7.85%
Number of Rooms
98
RevPAR
$33
Price/Room
$34,694
RRM
2.95
Year Built
1977

Investment Highlights

  • Three-Story, 98-Room, Interior-Corridor, Wyndham Hotels & Resorts-Branded Hotel
  • Priced Below Replacement Costs at $34,694 Per Key
  • Highly Visible and Easily Accessible from South Highway 16 – One of the Most Trafficked Thoroughfares in Rapid City Which Runs Through the Heart of Rapid City

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 Super 8 by Wyndham Rapid City Rushmore Rd (‘Hotel’ or ‘Property’). The Wyndham Hotels & Resorts-branded Hotel is offered at $3,400,000 or $34,694 per key. The Super 8 by Wyndham Rapid City Rushmore Road is located at 2520 Tower Road in Rapid City, South Dakota just off Highway 16. The 98-room, 3-story pair of buildings was built in 1977 and sits on a 1.34-acre plot. With approximately 34,769 square feet between each of the buildings’ three floors, the Property maintains a wide array of common area amenities including a business center, laundry facility, and parking space that can accommodate buses and trucks. Rapid City, the county seat of Pennington County, is the second-most populous city in South Dakota. The Rapid City Regional Airport is 10.8 miles from the Property and schedules flights with three major airlines to and from Salt Lake City, Dallas-Fort Worth, Denver, Minneapolis, Phoenix, and Chicago. Boasting an unemployment rate 3 percent lower than the national average and a growing job market, Rapid City’s fast-paced economy mostly relies on the healthcare industry. This is largely a result of the city’s position as the major healthcare center for five of the states that surround South Dakota. Nationally acclaimed for clinical excellence, Monument Health Rapid City Hospital is easily the most notable health care center. While Rapid City largely anchors its economy in the health care and military fields, the city is packed with attractions and sites that drive tourism. Tourism makes up roughly an eighth of the city’s economic contribution, largely due to Rapid City’s proximity to the tourist sites that pepper the region. Just over 20 miles south of the city, Mount Rushmore is among Rapid City’s top tourist destinations. The larger region in which Mount Rushmore lies, the Black Hills National Forest, is also filled with national monuments, trails, and parks. Among the most popular include the Crazy Horse National Monument, Jewel Cave National Monument, Custer State Park, and Wind Cave National Park. Outside of the popular national monuments, Rapid City is also home to attractions like Dinosaur Park, Art Alley, Chapel in the Hills, Storybook Island, and the ever-buzzing Main Street Square. In 2021, the Hotel recorded a RevPAR of $32.81 and room revenues over $1.15 million. With a 77 percent RevPAR penetration index, the Hotel’s revenues have plenty of room to grow. An experienced owner-operator can expect to surpass the STR-defined competitive set through revenue management strategies and cost control initiatives. Additionally, completion of the impending property improvement plan would present a substantial value add opportunity and assist new ownership in garnering real rate growth.

Exclusively Listed By

Broker of Record

  • Jon Ruzicka

    First Vice President Investments

    (952) 852-9700

    License(s): SD: 17724

    South Dakota

Financing By

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