Hotel-Motel

AmericInn Rochester Airport

7320 Airport View Dr SW, Rochester, MN 55902

Listing Price: $3,650,000

Cap Rate
4.33%
Number of Rooms
72
RevPAR
$30
Gross SF
35,533
Price/Room
$50,694
RRM
4.68
Price/Gross SF
$102.72
Year Built
2003

Investment Overview

Marcus & Millichap, National Hospitality Group, as an exclusive representative of the seller, is pleased to present for sale to qualified investors the leasehold interest in AmericInn Rochester International (RST) Airport Hotel in Rochester, Minnesota. Located on Airport View Road, this is the ONLY hotel designated as an Airport hotel in Rochester and is the southernmost Wyndham property in the market. Positioned visibly, the hotel has benefited significantly from capturing the eyes of almost all the transient demand traveling north into Rochester from I-90.

Rochester is Minnesotas second largest metro with significant growth expectations. The AmericInn Rochester Airport Hotel sits about 4 miles south of the city down Highway 63. This Limited-Service three-story, seventy-two room property was originally constructed as an extended stay Sleep Inn in 2002, opened 2003, and then converted to AmericInn in 2016. As with any major airport hotel, this property is being offered as a leasehold interest due to the proximity to the airport. The current ground lease was renegotiated by current ownership to more accommodating payment structure that the next investor will surely benefit from with current payments less than $22,000 annually. The new lease term commenced in 2016 with 49 years remaining through 2065.

This hotel is being offered to the market at the price of $4,295,000 ($59k/key), well below replacement cost and on a 3x room revenue multiplier. This offering is a rare opportunity for investors to acquire a well-established, stabilized, major metro market far below construction costs with consistent returns. A new owner can continue to run similar operations to maximize their returns as the property is well known in the area. Investors will have to opportunity to review the transfer PIP that Wyndham has prepared for the next owners of the AmericInn and investors should anticipate soft goods refresh and common area elements. Operationally, the hotel is pushing twenty-five percent (25%) of the achieved $1.45 million in room revenue through. This results in a net operating income $367,388 before debt service. The AmericInn Rochester Airport is offered as a ground lease property, unencumbered by management and debt.

Investment Highlights

  • Pricing on 2019: 2.6x RRM | $50k/Key | 10.4% Cap
  • Ideal Construction: Built 2002 | 72 Rooms | 3 Stories | Major Recent Cap Ex
  • Attractive Market: 2nd Largest MN Metro | International Airport | Mayo Clinic
  • Location: Route 63 north of I-90 | Rochester International Airport
  • Demand: The ONLY Rochester International Airport Hotel | Mayo Clinic
  • Franchise: AmericInn | PIP Refresh Expected | Limited Term | Extend Stay Construction

Exclusively Listed By

  • Jon Ruzicka

    First Vice President Investments

    (952) 852-9767

    Email Jon

    License(s): MN: 40583288, IA: B63379000, ND: 10032, WI: 76173-94, SD: 17724, NE: 20200223

    Minneapolis

  • Jake M. Erickson

    Associate

    (952) 852-9721

    Email Jake

    License(s): MN: 40486025, IA: S66396000, WI: 89877-94

    Minneapolis

  • Jared Plamann

    Associate

    (952) 852-9745

    Email Jared

    License(s): MN: 40605209, WI: 89876-94

    Minneapolis

Listing Price: $3,650,000

Cap Rate
4.33%
Number of Rooms
72
RevPAR
$30
Gross SF
35,533
Price/Room
$50,694
RRM
4.68
Price/Gross SF
$102.72
Year Built
2003

Investment Highlights

  • Pricing on 2019: 2.6x RRM | $50k/Key | 10.4% Cap
  • Ideal Construction: Built 2002 | 72 Rooms | 3 Stories | Major Recent Cap Ex
  • Attractive Market: 2nd Largest MN Metro | International Airport | Mayo Clinic
  • Location: Route 63 north of I-90 | Rochester International Airport
  • Demand: The ONLY Rochester International Airport Hotel | Mayo Clinic
  • Franchise: AmericInn | PIP Refresh Expected | Limited Term | Extend Stay Construction

Investment Overview

Marcus & Millichap, National Hospitality Group, as an exclusive representative of the seller, is pleased to present for sale to qualified investors the leasehold interest in AmericInn Rochester International (RST) Airport Hotel in Rochester, Minnesota. Located on Airport View Road, this is the ONLY hotel designated as an Airport hotel in Rochester and is the southernmost Wyndham property in the market. Positioned visibly, the hotel has benefited significantly from capturing the eyes of almost all the transient demand traveling north into Rochester from I-90.

Rochester is Minnesotas second largest metro with significant growth expectations. The AmericInn Rochester Airport Hotel sits about 4 miles south of the city down Highway 63. This Limited-Service three-story, seventy-two room property was originally constructed as an extended stay Sleep Inn in 2002, opened 2003, and then converted to AmericInn in 2016. As with any major airport hotel, this property is being offered as a leasehold interest due to the proximity to the airport. The current ground lease was renegotiated by current ownership to more accommodating payment structure that the next investor will surely benefit from with current payments less than $22,000 annually. The new lease term commenced in 2016 with 49 years remaining through 2065.

This hotel is being offered to the market at the price of $4,295,000 ($59k/key), well below replacement cost and on a 3x room revenue multiplier. This offering is a rare opportunity for investors to acquire a well-established, stabilized, major metro market far below construction costs with consistent returns. A new owner can continue to run similar operations to maximize their returns as the property is well known in the area. Investors will have to opportunity to review the transfer PIP that Wyndham has prepared for the next owners of the AmericInn and investors should anticipate soft goods refresh and common area elements. Operationally, the hotel is pushing twenty-five percent (25%) of the achieved $1.45 million in room revenue through. This results in a net operating income $367,388 before debt service. The AmericInn Rochester Airport is offered as a ground lease property, unencumbered by management and debt.

Exclusively Listed By

  • Jon Ruzicka

    First Vice President Investments

    (952) 852-9767

    Email Jon

    License(s): MN: 40583288, IA: B63379000, ND: 10032, WI: 76173-94, SD: 17724, NE: 20200223

    Minneapolis

  • Jake M. Erickson

    Associate

    (952) 852-9721

    Email Jake

    License(s): MN: 40486025, IA: S66396000, WI: 89877-94

    Minneapolis

  • Jared Plamann

    Associate

    (952) 852-9745

    Email Jared

    License(s): MN: 40605209, WI: 89876-94

    Minneapolis

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