Investment Overview

Marcus & Millichap is delighted to offer an exclusive investment opportunity in Grand Rapids, Minnesota, with the listing of a 58-room Country Inn & Suites. This upper midscale property was recently extensively renovated, resulting in minimal PIP expectations for an incoming buyer, if any. With current ownership managing remotely, this opportunity presents significant financial upside for an investor choosing to implement a more hands-on operational approach. Grand Rapids, the county seat of Itasca County, is named after the 3.5-mile-long local rapids in the Mississippi River. It provides small-town charm while offering year-round opportunities to explore Minnesota’s nature. In the summer, the area becomes a hub for excellent fishing on lakes such as Pokegama Lake and Lake Winnibigoshish, and for biking and hiking on the Mesabi Trail. Itasca State Park, Chippewa National Forest, and several golf courses also draw tourists. In the winter, Grand Rapids is known for snowmobiling, with miles of groomed trails that connect to a larger network throughout the state, as well as for snowshoeing and ice fishing. The hotel leverages this year-round appeal, capitalizing on both summer and winter tourism. Other demand generators for the hotel include events at the Itasca County Fairgrounds and nearby convention centers, as well as the Judy Garland Museum, which honors the actress and singer born in Grand Rapids. Grand Rapids is distinguished by its progressive attitude and abundant resources, making it the emerging economic focus of north-central Minnesota and attracting 300,000 visitors annually. Significant increases in area employment are anticipated over the next few years as major development projects come online. Consequently, Grand Rapids is actively seeking new business and housing partners and supporting the growth of existing ones. In addition to its leisure appeal, the city serves as a regional business hub due to its status as the county seat and the presence of a public-use airport located approximately three miles southeast of the central business district. Increasing this investment opportunities appeal, the hotel recently completed a Gen 4 renovation. Guests can now enjoy sought-after amenities such as a complimentary hot breakfast in a dedicated dining area. The well-appointed modern rooms feature amenities including coffee makers, refrigerators, microwaves, flat-screen TVs, and whirlpool bath suites. Overall, this acquisition offers a rare opportunity to invest in a year-round consistent ADR market, with the hotel itself averaging $106. Given the impressive room revenue of $1.3 million from only 58-rooms, an owner may choose to continue operating with a similar model or benefit from a hands-on management approach.