Investment Overview

Marcus & Millichap has been chosen to market the fee simple ownership of the Holiday Inn Downtown Des Moines Mercy Hotel, situated at 1050 6th Avenue, Des Moines, Iowa. Conveniently located two blocks from Mercy Medical Center and is a short drive from Drake University. The property boasts various on-site amenities, including two contemporary American restaurants, a heated indoor pool, fitness center, and free parking. Significant renovations, totaling $3.5 million over the last five years, ensuring its excellent condition and appeal. Notably, it enjoys high visibility along Interstate 235, adding to its attractiveness. The 12th floor meeting space offers the only high rise panoramic space in the market and provides a competitive advantage for the sales team when booking groups. In addition to the 12th floor view, this is the only property that offers guests free covered parking in the two level concrete garage and guests can enter through the basement level of the hotel without having to be exposed to the elements. With substantial demand generated by its proximity to Mercy Medical Center, which is undergoing a significant expansion, as well as its walking distance to the Iowa Event Center and Wells Fargo Arena, popular venues for various events. The hotel is strategically positioned to leverage the influx of government demand during the Iowa Caucus and capitalizes on Des Moines' robust economic growth, driven by insurance and technology sectors. Additionally, there are opportunities to enhance revenue and value, such as assuming the franchise agreement, optimizing room configurations, and capitalizing on the nearby Hilton hotel's influence. The Des Moines CBD/North submarket is displaying a strong recovery, marked by occupancy and revenue growth, with ongoing room expansion further indicating the area's potential.