Investment Overview

Marcus & Millichap is proud to have been chosen as Exclusive Broker and Advisor in regard to the marketing effort of the Governor’s Inn Pierre; a newly affiliated Travelodge property. Ownership signed a 15-year franchise agreement with Wyndham in 2022, prior to that time the hotel had been operating as a legacy non-brand affiliated independent hotel. Thus far, the owners have experienced a noticeable increase in revenue which is to be expected with the enhanced booking exposure. There is immediate upside potential via more hands-on expense management. The hotel is a two-story structure built in 1992. It has historically produced stable revenue figures which are currently increasing due to the new franchise affiliation. Overall, this acquisition provides an investor the opportunity to acquire a historically consistent performing hotel with upside potential at an attractive cap rate; seldom do these metrics align in the Upper Midwest. Regardless of whether a new owner implements an owner/operator or regional portfolio addition ownership model, immediate and sizeable enhanced profitability awaits. The hotel itself is situated on a large parcel with ample complimentary parking directly off of the main East/West highway running through Pierre. Pierre is located in Central South Dakota and serves as the state Capital. It is surrounded by a host of regional airports including Pierre itself which is serviced by nonstop flights out of Minneapolis for ease of access for a remote owner. It is located in a scenic part of South Dakota along the Missouri River and boasts numerous leisure demand generators including hunting, fishing, sightseeing and a historic and charming downtown. In addition to its leisure appeal, it also generates abundant government travel due to its status as state capital.