Hotel-Motel
Governor's Inn Pierre - A Travelodge by Wyndham
700 W Sioux Ave, Pierre, SD 57501
Listing Price: $2,800,000
Investment Overview
Marcus & Millichap is proud to have been chosen as Exclusive Broker and Advisor in regard to the marketing effort of the Governor’s Inn Pierre; a newly affiliated Travelodge property. It is being offered well below industry norms at only 2.5x room revenue and this metric continues to become more attractive each month as revenue continues to grow. Ownership signed a 15-year franchise agreement with Wyndham in 2022, prior to that time the hotel had been operating as a legacy non-brand affiliated independent hotel. Thus far, the owners have experienced a noticeable increase in revenue which is to be expected with the enhanced booking exposure. It is currently managed in an absentee capacity with a manager by committee approach being implemented. There is immediate upside potential via more hands-on expense management. The hotel is a two-story structure built in 1992. It has historically produced stable revenue figures which are currently increasing due to the new franchise affiliation.
Overall, this acquisition provides an investor the opportunity to acquire a historically consistent performing hotel with upside potential at an attractive room revenue multiplier; seldom do these metrics align in the Upper Midwest. Regardless of whether a new owner implements an owner/operator or regional portfolio addition ownership model, immediate and sizeable enhanced profitability awaits. The hotel itself is situated on a large parcel with ample complimentary parking directly off of the main East/West highway running through Pierre.
Pierre is located in Central South Dakota and serves as the state Capital. It is surrounded by a host of regional airports including Pierre itself which is serviced by non-stop flights out of Minneapolis for ease of access for a remote owner. It is located in a scenic part of South Dakota along the Missouri River and boasts numerous leisure demand generators including hunting, fishing, sightseeing and a historic and charming downtown. In addition to its leisure appeal, it also generates abundant government travel due to its status as state capital.
Governor's Inn Pierre - A Travelodge by Wyndham
Investment Highlights
- Recent 2022 Brand Affiliation with Wyndham Hotels and Resorts; Prior to that was Built and Operated as a Legacy Independent Hotel.
- Current and Ongoing Revenue Ramp-Up as Should be Expected with Newly Created Franchise Affiliation.
- Historical Absentee Ownership Currently Being Ran with a Manager by Committee Approach.
- Attractive and Below Industry Norm Room Revenue Multiplier of Only 2.5x and Improving Every Month.
- Immediate Upside Potential via a More Hands-On Approach with Expense Management.
- Capital City Market with an Abundance of Alternative Demand Generators of Which the Property is Well Positioned to Capture.
- Easily Managed and Attractive Room Count without any F&B or Banquets/Catering Operations.
- Price per Room of Only $35,897.
Listing Price: $2,800,000
Investment Highlights
- Recent 2022 Brand Affiliation with Wyndham Hotels and Resorts; Prior to that was Built and Operated as a Legacy Independent Hotel.
- Current and Ongoing Revenue Ramp-Up as Should be Expected with Newly Created Franchise Affiliation.
- Historical Absentee Ownership Currently Being Ran with a Manager by Committee Approach.
- Attractive and Below Industry Norm Room Revenue Multiplier of Only 2.5x and Improving Every Month.
- Immediate Upside Potential via a More Hands-On Approach with Expense Management.
- Capital City Market with an Abundance of Alternative Demand Generators of Which the Property is Well Positioned to Capture.
- Easily Managed and Attractive Room Count without any F&B or Banquets/Catering Operations.
- Price per Room of Only $35,897.
Investment Overview
Marcus & Millichap is proud to have been chosen as Exclusive Broker and Advisor in regard to the marketing effort of the Governor’s Inn Pierre; a newly affiliated Travelodge property. It is being offered well below industry norms at only 2.5x room revenue and this metric continues to become more attractive each month as revenue continues to grow. Ownership signed a 15-year franchise agreement with Wyndham in 2022, prior to that time the hotel had been operating as a legacy non-brand affiliated independent hotel. Thus far, the owners have experienced a noticeable increase in revenue which is to be expected with the enhanced booking exposure. It is currently managed in an absentee capacity with a manager by committee approach being implemented. There is immediate upside potential via more hands-on expense management. The hotel is a two-story structure built in 1992. It has historically produced stable revenue figures which are currently increasing due to the new franchise affiliation. Overall, this acquisition provides an investor the opportunity to acquire a historically consistent performing hotel with upside potential at an attractive room revenue multiplier; seldom do these metrics align in the Upper Midwest. Regardless of whether a new owner implements an owner/operator or regional portfolio addition ownership model, immediate and sizeable enhanced profitability awaits. The hotel itself is situated on a large parcel with ample complimentary parking directly off of the main East/West highway running through Pierre. Pierre is located in Central South Dakota and serves as the state Capital. It is surrounded by a host of regional airports including Pierre itself which is serviced by non-stop flights out of Minneapolis for ease of access for a remote owner. It is located in a scenic part of South Dakota along the Missouri River and boasts numerous leisure demand generators including hunting, fishing, sightseeing and a historic and charming downtown. In addition to its leisure appeal, it also generates abundant government travel due to its status as state capital.
