Investment Overview

Marcus & Millichap has been chosen to exclusively offer for sale the Best Western Plus Steeplegate Inn, a two story full service hotel with food & beverage operated by lessee, located at the crossroads of Interstate 80 and U.S. Route 61 in Davenport, Iowa. The hotel consists of 118 interior corridor rooms and benefits from close proximity to several attractions and businesses within the Quad Cities Metropolitan area. Amazon recently opened a 2.3-million square-foot, state-of-the-art robotics fulfillment center nearby, with the Best Western Plus Steeplegate Inn being the closest hotel to the site. Amenities include a heated indoor pool & spa, spacious atrium, outdoor patio with seating, fitness center and complimentary breakfast. Business amenities include a business center and more than 8,000 square feet of meeting space. The hotel's F&B is leased out and run by the lessee. The F&B lessee provides catering services for events held at the hotel. The lessee also pays $120,000/year and 30% of the hotel's utility costs. F&B lease commences in September 2024 for events, bar and restaurant. Hotel is responsible for guest breakfast. The cost of capital property improvements in 2023 & 2024 total $756,750 and include 3 phase wiring in all guest rooms, new LVT flooring in 92 guest rooms, new PTAC units in 106 guest rooms, replacement of windows in poor shape in the amount of $36,000, new Atrium HVAC, new outdoor LED parking lot lighting, etc. Additionally, a new $346,380 solar roof has reduced the hotel's electric costs by 30% in its first six months. The hotel’s asking price is $8,000,000. Five-Year IRR on asking price is 30.0% and Average Cash-on-Cash Return on asking price is 22.5%.