Investment Overview

Marcus & Millichap is proud to serve as the Exclusive Broker and Advisor for the marketing effort of the Country Inn & Suites Fergus Falls. This 2-story limited-service hotel, extensively renovated in 2018, features 96 rooms and boasts a strategic location directly connected to the city owned and operated Bigwood Event Center, the area’s largest convention and meeting space. The hotel frequently hosts event attendees and employees from major local employers such as Otter Tail Power, the US Fish and Wildlife Service, John Deere, and Minnesota State Community and Technical College. Further, the property and its signage boasts billboard like visibility from Interstate 94. This exceptional investment opportunity offers historically consistent performance with impressive room revenue exceeding $2 million and offered at a 2.6X room revenue multiplier. The hotel is owned by a hands-off owner, presenting an opportunity for a more hands-on owner/operator to implement cost-saving measures. By adopting a more involved approach, a new owner could enhance revenue generation and improve operating margins, offering significant upside potential. In 2018 the hotel was converted to Country Inn & Suites which required extensive renovations totaling around $1.7 Million. Located in Fergus Falls, the county seat of Otter Tail County, Minnesota, the hotel benefits from its proximity to approximately 60,000 residents and its ideal position along the Otter Tail River. The area is about 60 minutes from the Fargo/Moorhead MSA and a two-hour drive on the busy I-94 from the Twin Cities Metropolitan Area. Known for its stunning natural environment, Fergus Falls is at the heart of West Central Minnesota's lakes region, including popular vacation spots like Alexandria and Detroit Lakes. Outdoor enthusiasts flock to the area for fishing, boating, hiking, and scenic views, with attractions such as the Prairie Wetlands Learning Center, Pebble Lake Golf Club, and the Central Lakes Trail. Winter activities are abundant, with opportunities for skiing at Andes Tower Hills and Spidahl Ski Gaard, as well as ice fishing. Historical and cultural sites like the Otter Tail County Historical Museum and events like Fergus Falls SummerFest further enhance the area's appeal. The adjacent Bigwood Event Center offers over 12,000 square feet of versatile space for meetings and events, catering to needs ranging from intimate board meetings to large trade shows and weddings. This significantly boosts the hotel's occupancy and supports aggressive ADR strategies while eliminating the operational costs and liabilities for the hotel as the owner is not responsible for operating the event center. As a unique feature attracting guests, the hotel has a distinctive Minnesota-shaped heated indoor pool and spa. Additionally, guests enjoy complimentary breakfast in the designated dining area, along with other sought-after amenities such as a fitness center, guest laundry, and a business center. All 96 rooms are equipped with modern comforts including laptop-friendly workspaces, air conditioning, WiFi, sound-insulated walls, iron/ironing board, coffee & tea makers, flat-screen TVs with premium channels, and hairdryers. Overall, this acquisition presents a seldom available hospitality investment opportunity, highlighted by recent extensive renovations totaling $1.7 Million, consistently outpacing its Comp Set’s ADR, and impressive room revenue exceeding $2 million. With the potential for further upside through hands-on management and operational improvements, this property offers significant growth potential along with a high ROI.