Investment Overview

Marcus & Millichap is proud to serve as the Exclusive Broker and Advisor for the marketing efforts of the Quality Inn Detroit Lakes. This 56-room midscale hotel is located in the heavily tourism-driven economy of Minnesota’s "Lakes Country," a popular summer destination and winter sports haven. It offers investors a predictable high occupancy rate and revenue. With current ownership using a delegating approach to operations, the combination of its strategic location, property attractions, and a more hands-on management style makes this an excellent value-add investment opportunity. The Quality Inn offers many sought-after in-room amenities to meet a variety of travelers' needs. While guests may choose to stay in a spacious whirlpool suite, all rooms feature flat-screen TVs, microwaves, refrigerators, coffee makers, hairdryers, and irons, as well as thoughtful comforts like premium bedding, USB charging stations, and curved shower curtains. All guests have access to the waterpark, which includes a 133-foot waterslide, whirlpool, swimming pool, and kiddie pool with a splash pad. Additional hotel features such as complimentary hot breakfast with a sitting area, a business center, meeting space accommodating up to 60 guests, and a fitness center also add value to the guest experience. The area of Detroit Lakes, MN sees a steady stream of visitors for its beautiful nature setting. Summer activities like boating, fishing, hiking, the 1 mile stretch of city beach less a mile from the hotel, and the eight golf courses located within six miles are a major draw to the hotel. Impressively, Detroit Lakes annually hosts WE Fest, one of the largest country music festivals in the United States. The event typically attracts between 40,000 to 50,000 people over its four-day duration, leading to full occupancy in local accommodations and driving a high ADR. Downtown Detroit Lakes is less than 10 minutes away from our hotel, making it easy to check out local restaurants and enjoy some “up north” shopping. The hotel also takes advantage of year-round revenue with winter skiing, snowboarding, and tubing at nearby Detroit Mountain Recreation Area as well as snowmobiling with direct trail access from the Quality Inn. Overall, this investment offers an excellent investor opportunity in a high ADR location, attracting a steady stream of tourism with its proximate location to major area attractions and the on-site amenities. Incoming investor upside implementing alternative operations management strategies can yield excellent ROI.