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 Rodeway Inn Rockford (‘Hotel’ or ‘Property’). The Choice Hotels International Hotel is offered at $3,050,000 or $32,105 per key. The Rodeway Inn Rockford is located at 4605 E State St in Rockford, Illinois, off of State Highway 20. The 95-room, two-story is situated on a 1.73-acre lot. The Property’s common area amenities include a breakfast area, business center, meeting room, guest laundry, and vending machines. Located on the banks of the Rocks River in the far northern part of Illinois, Rockford is the county seat of Winnebago County and about 80 miles northwest of Chicago. The largest city in the state outside of the Chicago Metropolitan Area, Rockford is the fifth largest city in the state and the 171st most populous in the country. Rockford is home to several universities and colleges with events throughout the year, including Rockford University, Rock Valley College, and Northern Illinois University. Several attractions are situated near the Hotel, including Hurricane Harbor (2.2 miles) and Hard Rock Casino (3.1 miles). Nicknamed the Forest City, Rockford is rich with destinations of cultural prominence and historical significance, such as the Anderson Japanese Gardens, Klehm Arboretum, Rockford Art Museum, the Burpee Museum of Natural History and the BMO Harris Bank Center. Historical buildings such as the Tinker Swiss Cottage, the Coronado Theatre, and the Laurent House, have been standing since the early 1900s. Many popular outdoor recreational spots are located near the city including Rock Cut State Park, Atwood Homestead County Forest Preserve, and Lowden State Park. Additionally, Nicholas Conservatory & Gardens, Sinnissippi Park, and the Rockford Park District's Magic Waters Waterpark provide tourists with many outdoor opportunities. The city is also home to the Rockford IceHogs, a professional hockey team that plays in the American Hockey League. The local economy is largely supported by manufacturing, historically a leading furniture and heavy machinery manufacturing city, but further diversification has led to growth in the automotive, aerospace, and health care industries. Revitalization efforts downtown has led Rockford to undertake various strides to increase tourism to the city. For instance, the Coronado Theatre was reopened in 2001 after undergoing an 18-month multi-million-dollar renovation and expansion while the MetroCentre downtown arena completed a $20 million renovation in 2008 and was renamed the BMO Harris Bank Center in 2011. Rockford’s well-established transportation infrastructure connects the metro via the Chicago Rockford International Airport, as well as several major highways and interstates. In the trailing twelve-month period ending in March 2023, the limited-service Hotel recorded room revenues of over $763,000 and a net operating income just over $276,000, or 36.2 percent as a percentage of total revenues, after a 4 percent capital replacement reserve. 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.