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 Mainstay Suites Watford City Event Center (‘Hotel’ or ‘Property’) located in Watford City, North Dakota. The Choice Hotels - branded Hotel is offered at $4,300,000 or $48,315 per key. The Mainstay Suites Watford City Event Center Hotel is an 89-room, four-story Hotel stationed at 222 Prairie Hills Rd in Watford City, North Dakota, just off the intersection of ND Highway 23 and Route 85. Various common area amenities at the Property include a fitness center, laundry facility, business center, banquet space, outdoor patio with barbecue grills, convenience store, and breakfast area. Watford City is located in the western region of North Dakota, situated on the Bakken Formation, and serves as the county seat of McKenzie County. The Hotels proximity to some of the city’s popular demand generators allows it to take full advantage of the prominent industries within the local economy. Demand drivers for the city include Fox Hills Golf Course ( .8 miles), Watford City Municipal Airport (1.3 miles), and McKenzie County Heritage Park & North Dakota Oil Museum (3 miles). The Long X Trading Post is also nearby. Here visitors can visit a museum dedicated to the history of the fur trade in the region. Watford City is also located near Theodore Roosevelt National Park and Lake Sakakawea, both popular locations for those seeking out hiking trails and scenic overlooks with breathtaking views of the surrounding area. The region is known for its oil and gas industry, which has led to a surge in population growth in recent years. Multiple oil and gas companies are located near the Hotel, including Farmers Union Oil Co. ( 2.2 miles), Hovland Hot Oil Service (2.0 miles), and Rolfson Oil (3.8 miles). Another major employer that is responsible for a significant portion of the workforce is McKenzie County Healthcare Systems which is located 1.3 miles away. In the trailing twelve-month period ending in December 2022, the limited-service Hotel recorded room revenues of over $1.4 million and a net operating income over $336 thousand, or 22.6 percent as a percentage of total revenues, after a 4 percent capital replacement reserve. The twelve-month average RevPAR in the North Dakota Area hotel submarket was up 20.9 percent as of March. A prospective buyer should be able to capitalize on the anticipated increase in RevPAR through better revenue management, not only benefiting from increased market share but also higher NOI flow-through.