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Hotel-Motel

La Quinta Inn & Suites Rochester 2014 Build

4353 Canal Pl SE, Rochester, MN 55904

Listing Price: $6,500,000

Cap Rate
2.90%
Number of Rooms
83
RevPAR
$53
Price/Room
$78,313
RRM
4.00
Year Built
2014

Investment Overview

Marcus & Millichap is honored to have been selected as the Exclusive Broker and Advisor for the marketing effort of the La Quinta Inn & Suites Rochester Mayo Clinic South.

This four-story hotel, built in 2014, boasts 83 guestrooms and is conveniently situated just off US Highway 63. Its prime location offers proximity to the world-renowned Mayo Clinic, Rochester’s downtown shopping and dining district, IBM, Seneca Foods, and the Rochester International Airport, making it an attractive choice for a diverse range of travelers.

Modern amenities at the hotel include a saltwater pool, meeting room, business center, pet-friendly rooms, and complimentary shuttle service to the Mayo Clinic and other local attractions. The ideal room mix, including numerous suites, aligns with the expectations of today’s travelers. Additional features such as EV charging, an elevator, fitness center, guest laundry, spacious breakfast area, and an overall modern contemporary feel further enhance the guest experience.

This investment represents a strategically positioned asset, combining modern amenities with a prime location. The acquisition offers a unique opportunity to secure a recently constructed hotel that consistently achieved pre-COVID room revenue ranging between $2.2 million and $2.3 million, all at a notably lower cost than replacement. The twelve-month average RevPAR in the Rochester hotel submarket was robust, experiencing an annual growth rate of 11.1 percent, surpassing the 6.7 percent increase observed in the broader Minnesota market.

Rochester, with a population of well over 100,000, stands as Minnesota’s third-largest city. Serving as the county seat of Olmsted County, it is home to the world-renowned Mayo Clinic, drawing in 2 million annual visitors. The Mayo Clinic anchors the $5.6 billion Destination Medical Center (DMC) project, positioning Rochester as a highly dynamic city with numerous demand generators. Its location, less than two hours south of Minneapolis, adds to its appeal.

Investment Highlights

  • 2014 Build High Performing Midscale Hotel With Consistent Baseline Room Revenue
  • Pre-COVID Room Revenue Figures Approaching $2.4 Million
  • Current and Historical Occupancy and RevPAR Metrics Consistently Outperform Competitive Set
  • Rare Opportunity to Acquire an Upper-Midscale Hotel in the Rochester Market That's a Recent Build complete with a Modern Contemporary Look
  • Conveniently Located Near All Top Traveler Rochester Destinations such as the World Renowned Mayo Clinic, IBM, Seneca Foods, Downtown, and Rochester International Airport
  • Rochester's Post Covid Improvement Market Metrics Are Outpacing Those of the Greater Minnesota Market
  • Modern and In Demand Amenities Including A Salt Water Pool, Fitness Center, Meeting Room, Spacious Breakfast Area, and EV Charging

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

  • Jared Plamann

    Senior Associate

    (952) 852-9745

    Email Jared

    License(s): MN: 40605209, WI: 89876-94

    Minneapolis

  • Joseph Ferguson

    Associate

    (952) 852-9769

    Email Joseph

    License(s): MN: 40737246

    Minneapolis

Hotel-Motel

La Quinta Inn & Suites Rochester 2014 Build

Listing Price: $6,500,000

Cap Rate
2.90%
Number of Rooms
83
RevPAR
$53
Price/Room
$78,313
RRM
4.00
Year Built
2014

Investment Highlights

  • 2014 Build High Performing Midscale Hotel With Consistent Baseline Room Revenue
  • Pre-COVID Room Revenue Figures Approaching $2.4 Million
  • Current and Historical Occupancy and RevPAR Metrics Consistently Outperform Competitive Set
  • Rare Opportunity to Acquire an Upper-Midscale Hotel in the Rochester Market That's a Recent Build complete with a Modern Contemporary Look
  • Conveniently Located Near All Top Traveler Rochester Destinations such as the World Renowned Mayo Clinic, IBM, Seneca Foods, Downtown, and Rochester International Airport
  • Rochester's Post Covid Improvement Market Metrics Are Outpacing Those of the Greater Minnesota Market
  • Modern and In Demand Amenities Including A Salt Water Pool, Fitness Center, Meeting Room, Spacious Breakfast Area, and EV Charging

Investment Overview

Marcus & Millichap is honored to have been selected as the Exclusive Broker and Advisor for the marketing effort of the La Quinta Inn & Suites Rochester Mayo Clinic South. This four-story hotel, built in 2014, boasts 83 guestrooms and is conveniently situated just off US Highway 63. Its prime location offers proximity to the world-renowned Mayo Clinic, Rochester’s downtown shopping and dining district, IBM, Seneca Foods, and the Rochester International Airport, making it an attractive choice for a diverse range of travelers. Modern amenities at the hotel include a saltwater pool, meeting room, business center, pet-friendly rooms, and complimentary shuttle service to the Mayo Clinic and other local attractions. The ideal room mix, including numerous suites, aligns with the expectations of today’s travelers. Additional features such as EV charging, an elevator, fitness center, guest laundry, spacious breakfast area, and an overall modern contemporary feel further enhance the guest experience. This investment represents a strategically positioned asset, combining modern amenities with a prime location. The acquisition offers a unique opportunity to secure a recently constructed hotel that consistently achieved pre-COVID room revenue ranging between $2.2 million and $2.3 million, all at a notably lower cost than replacement. The twelve-month average RevPAR in the Rochester hotel submarket was robust, experiencing an annual growth rate of 11.1 percent, surpassing the 6.7 percent increase observed in the broader Minnesota market. Rochester, with a population of well over 100,000, stands as Minnesota’s third-largest city. Serving as the county seat of Olmsted County, it is home to the world-renowned Mayo Clinic, drawing in 2 million annual visitors. The Mayo Clinic anchors the $5.6 billion Destination Medical Center (DMC) project, positioning Rochester as a highly dynamic city with numerous demand generators. Its location, less than two hours south of Minneapolis, adds to its appeal.

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

  • Jared Plamann

    Senior Associate

    (952) 852-9745

    Email Jared

    License(s): MN: 40605209, WI: 89876-94

    Minneapolis

  • Joseph Ferguson

    Associate

    (952) 852-9769

    Email Joseph

    License(s): MN: 40737246

    Minneapolis

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