Investment Overview

Marcus & Millichap is pleased to exclusively present the opportunity to acquire the 163-room Radisson Hotel La Crosse, a prominently positioned full-service hospitality asset located along the Mississippi River in the heart of downtown La Crosse, Wisconsin. Institutionally owned since development, this legacy asset remains under its original ownership and is being offered for sale for the first time. Situated on approximately 3.08 acres across two parcels, the Property occupies an irreplaceable riverfront location widely regarded as the premier hospitality site in La Crosse. This exceptional downtown setting provides immediate access to the city's leading leisure, corporate, medical, educational, and entertainment demand generators. The Property is directly connected to the La Crosse Convention Center via an enclosed skyway, providing a distinct competitive advantage and a consistent source of convention, meeting, banquet, and group lodging demand throughout the year. Originally constructed in 1980, the hotel features post-tension concrete construction, providing exceptional structural integrity, durability, superior sound attenuation, and long-term capital resilience. The Property is currently operated pursuant to a Choice Hotels management agreement scheduled to expire on December 31, 2026, creating a rare opportunity for future ownership to evaluate branding, management, and operational strategies. A Hilton conversion PIP has already been completed, providing a clear roadmap for potential repositioning. Ownership is currently structured as a ground lease but upon close of escrow, will be converted to fee simple so an investor is purchasing both the building and ground in a traditional fee simple structure. The Radisson La Crosse represents a compelling value-add investment opportunity at a significant discount to replacement cost. Ownership has maintained the Property to institutional standards through a disciplined preventative maintenance program while investing approximately $5.5 million in capital improvements over the past two years. More than $3 million was allocated toward a comprehensive renovation of every guestroom bathroom completed between 2025 and 2026, substantially enhancing guest satisfaction while materially reducing near-term capital requirements. Additional investments include replacement of the service elevator, chiller system, kitchen and laundry equipment, extensive public area carpeting, and conversion of a former VIP lounge into an additional guest suite. Collectively, these improvements position the asset with limited deferred maintenance and minimal near-term capital exposure. Favorable feedback received during a recent Hilton conversion PIP further validates the quality and physical condition of the Property. A key component of the investment thesis is the expiration of the existing Choice Hotels management agreement on December 31, 2026. This creates meaningful flexibility for future ownership to pursue self-management, engage a third-party operator, or execute a strategic rebranding initiative. Ownership has already explored a potential Hilton affiliation, providing investors with a clear path to elevate market positioning, broaden customer reach, and enhance long-term RevPAR growth and profitability. Additional long-term upside exists through the expiration of the La Crosse Club lease in 2029. Upon lease expiration, the space will revert to hotel ownership, creating opportunities to expand food and beverage offerings, meeting and event space, guest amenities, or other revenue-generating uses that further enhance overall asset value. Operating performance during 2025 and 2026 was temporarily impacted by the phased guestroom bathroom renovation program, during which approximately 27% of guestrooms were unavailable at any given time. Although this created temporary RevPAR pressure and reduced available inventory, the Property has historically achieved approximately 100 percent RevPAR penetration within its competitive set. With renovated guestrooms returning to service, ownership is positioned to benefit from meaningful earnings recovery, operating margin expansion, and accelerated cash flow growth. The La Crosse lodging market is supported by a diversified economic base anchored by healthcare, higher education, manufacturing, and regional distribution. The Property benefits from quick access to Mayo Clinic Health System, Gundersen Health System, Reinhart Food Service, the University of Wisconsin–La Crosse, Viterbo University, Western Technical College, and its direct connection to the La Crosse Convention Center, which consistently generates convention, banquet, meeting, and group lodging demand throughout the year. Combined with the vibrant downtown entertainment district, scenic Mississippi River waterfront, and year-round tourism, the Radisson La Crosse offers investors a rare opportunity to acquire a recently renovated, institutionally maintained full-service hotel with multiple avenues for operational enhancement, strategic repositioning, and long-term value creation.