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Hotel-Motel

Holiday Inn Express & Suites Northwood

4712 Wheelerwood Rd, Northwood, IA 50459

Listing Price: $3,900,000

Cap Rate
4.70%
Number of Rooms
60
RevPAR
$61
Gross SF
36,414
Price/Room
$65,000
RRM
2.94
Price/Gross SF
$107.10
Year Built
2011

Investment Overview

Marcus & Millichap is proud to have been chosen as Exclusive Broker and Advisor in regard to the marketing effort of the Holiday Inn Express & Suites in Northwood, Iowa. The hotel is a three-story structure built in 2011. It received a new roof summer of 2022 and features 60 guestrooms. Current ownership has exercised their franchise termination window with IHG and has intended to explore other branding options. This provides a unique opportunity for an investor to explore alternative franchise opportunities and take advantage of franchisors aggressively pursuing recently built and well-located hotels for conversion. Likewise, continued affiliation with the current franchisor remains an option. Overall, this acquisition provides an investor the opportunity to acquire a historically consistent performing recently built hotel with an ideal franchise situation at considerably below replacement cost; seldom do these metrics align in the Upper Midwest. This hotel has been owned and operated by an institutional tier owner which provides upside potential for a more hands on owner/operator by implementing cost saving measures. Enhanced projected revenue generation and improved operating margins via a more hands on approach offers a new owner considerable upside potential. The hotel itself is situated on a large parcel with ample complimentary parking directly off of Interstate 35, the main north/south interstate running through Minnesota and Iowa. It is within walking distance of a large casino that draws patrons from both Minnesota and Iowa. The hotel features all amenities that every type of today’s traveler seeks including: indoor pool and whirlpool, complimentary parking, elevator, meeting room, fitness center, guest laundry, spacious breakfast area and an overall modern and contemporary feeling. There is also an ideal room mix inclusive of a number of suites. Northwood is two hours south of Minneapolis and is located just over the Minnesota/Iowa border. It is situated directly off of the highly traveled Interstate 35. Given that it is home to a large regional casino, the immediate and surrounding areas are able to command a high ADR. The city serves as an approximate halfway point between Minneapolis/St. Paul, MN and Des Moines, IA.

Investment Highlights

  • Seldom Available Opportunity to Acquire a 2011 Build 3-Story Upper-Midscale Hotel in the Upper-Midwest for Considerably Below Replacement Cost
  • Developed, Owned and Operated by an Institutional Tier Owner Provides Operational Upside for a More Hands-On Owner/Operator or Seamless Transition for Larger Owner Implementing 3rd Party Management
  • Ideal Franchise Status as a Buyer May Elect to Continue Affiliation with Current Franchisor or Explore Alternative Options with Substantially Limited Liquidated Damages
  • Location Itself is a Built-In Demand Generator as Property is Located Within Walking Distance of a Large Casino Featuring Live Gaming and Extensive Event Space
  • Stable Historical Room Revenue; Subject Property is Consistently the Market's Clear ADR Leader Yet Still Provides Upside Due to RevPAR Penetration Below 100%
  • Upward Trending Market with Year to Date RevPAR Growth Exceeding 40% for Both Subject Property and Competitive Set Provides Continued Upside Revenue Generation and Should Ultimately Result in a Purchase Price Below 3x Room Revenue

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

Broker of Record

  • Jon Ruzicka

    First Vice President Investments

    (952) 852-9700

    License(s) IA: B63379000

    Iowa

Financing By

Hotel-Motel

Holiday Inn Express & Suites Northwood

Listing Price: $3,900,000

Cap Rate
4.70%
Number of Rooms
60
RevPAR
$61
Gross SF
36,414
Price/Room
$65,000
RRM
2.94
Price/Gross SF
$107.10
Year Built
2011

Investment Highlights

  • Seldom Available Opportunity to Acquire a 2011 Build 3-Story Upper-Midscale Hotel in the Upper-Midwest for Considerably Below Replacement Cost
  • Developed, Owned and Operated by an Institutional Tier Owner Provides Operational Upside for a More Hands-On Owner/Operator or Seamless Transition for Larger Owner Implementing 3rd Party Management
  • Ideal Franchise Status as a Buyer May Elect to Continue Affiliation with Current Franchisor or Explore Alternative Options with Substantially Limited Liquidated Damages
  • Location Itself is a Built-In Demand Generator as Property is Located Within Walking Distance of a Large Casino Featuring Live Gaming and Extensive Event Space
  • Stable Historical Room Revenue; Subject Property is Consistently the Market's Clear ADR Leader Yet Still Provides Upside Due to RevPAR Penetration Below 100%
  • Upward Trending Market with Year to Date RevPAR Growth Exceeding 40% for Both Subject Property and Competitive Set Provides Continued Upside Revenue Generation and Should Ultimately Result in a Purchase Price Below 3x Room Revenue

Investment Overview

Marcus & Millichap is proud to have been chosen as Exclusive Broker and Advisor in regard to the marketing effort of the Holiday Inn Express & Suites in Northwood, Iowa. The hotel is a three-story structure built in 2011. It received a new roof summer of 2022 and features 60 guestrooms. Current ownership has exercised their franchise termination window with IHG and has intended to explore other branding options. This provides a unique opportunity for an investor to explore alternative franchise opportunities and take advantage of franchisors aggressively pursuing recently built and well-located hotels for conversion. Likewise, continued affiliation with the current franchisor remains an option. Overall, this acquisition provides an investor the opportunity to acquire a historically consistent performing recently built hotel with an ideal franchise situation at considerably below replacement cost; seldom do these metrics align in the Upper Midwest. This hotel has been owned and operated by an institutional tier owner which provides upside potential for a more hands on owner/operator by implementing cost saving measures. Enhanced projected revenue generation and improved operating margins via a more hands on approach offers a new owner considerable upside potential. The hotel itself is situated on a large parcel with ample complimentary parking directly off of Interstate 35, the main north/south interstate running through Minnesota and Iowa. It is within walking distance of a large casino that draws patrons from both Minnesota and Iowa. The hotel features all amenities that every type of today’s traveler seeks including: indoor pool and whirlpool, complimentary parking, elevator, meeting room, fitness center, guest laundry, spacious breakfast area and an overall modern and contemporary feeling. There is also an ideal room mix inclusive of a number of suites. Northwood is two hours south of Minneapolis and is located just over the Minnesota/Iowa border. It is situated directly off of the highly traveled Interstate 35. Given that it is home to a large regional casino, the immediate and surrounding areas are able to command a high ADR. The city serves as an approximate halfway point between Minneapolis/St. Paul, MN and Des Moines, IA.

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

Broker of Record

  • Jon Ruzicka

    First Vice President Investments

    (952) 852-9700

    License(s): IA: B63379000

    Iowa

Financing By

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