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Hotel-Motel

Best Western Premier Nicollet Inn

14201 Nicollet Ave, Burnsville, MN 55337

Listing Price: $9,550,000

Cap Rate
7.28%
Number of Rooms
131
RevPAR
$48
Gross SF
93,206
Price/Room
$72,901
RRM
2.80
Price/Gross SF
$102.46
Year Built
1984

Investment Overview

Marcus & Millichap Minneapolis is proud to have been selected as exclusive advisor and broker regarding the marketing of the five-story, 131 room, Best Western Premier Nicollet Inn. Situated directly off Interstate 35E, this TripAdvisor Certificate of Excellence-winning hotel is just minutes from the Twin Cities and close to renowned shopping, cultural institutes, and sporting venues. The hotel sits on over seven acres of prime interstate real estate at the 35W/35E interchange. As legacy owners, current ownership has spent over ten years with the asset and have owned and operated since 2010. The next owner will benefit from acquiring a well-maintained structure but more importantly, an experienced staff and team that will keep the hotel operating. With the strong historical performance of the operation, the substantial renovation, substantial site value, and has spent the last ten years under professional management, potential investors can feel confident in pursuing this as an opportunity. The Best Western Premier Nicollet Inn is priced attractively at $72,901 per key, or $9,550,000.00. Far below replacement cost, the existing seven-acre site with 93,205 sq ft, 131 room hotel and restaurant this is an opportunity to acquire a prime metro area asset that has historically generated over $1 million in net operating income. At the listing price, 2021 room revenue multiplier (RRM) is 4.78x. When incorporating other revenue, 2021 total revenue multiplier (TRM) is at an attractive 3.26x. Reviewing 2019 performance, RRM at the listing price equates to 3.43x and a 2019 TRM of 1.89x. Operationally, the hotel has flowed between fifteen to twenty percent of its generated revenue to the bottom line. While still in post-COVID-19 recovery, the hotel generated a 2021 RevPAR of $40.39 versus $58.12 in 2019. Room revenue 2021 totaled $1.99 million compared to historical 2019 room revenue of $2.78 million. In addition to the hotel’s room revenue, the hotel is supported by a substantial food and beverage operation. Combined Year-end 2021 revenue hit $2.86 million compared to the $5.25 million generated during 2019. Stabilized occupancy of between fifty and fifty-five percent with an ADR of $110.00, the asset should be able to re-achieve the historical stabilized room revenue between $2.9 million and $3.2 million during 2022/2023. In conjunction to the hotel, ownership operates the connected restaurant, Morgan’s Farm to Table. The restaurant supports the hotel and utilizes the 3,200 sq ft banquet ballroom with three sections, occupancy of 300 guests. To capture the area’s group demand for below 50 guests, the hotel itself also encompasses two boardrooms and one conference room. Collectively, Morgan’s Farm to Table, banquet, and other revenue totaled just under $1 million for 2021 compared to 2018 figures of $2.35 million and 2019 totaling $2.27 million. Recent substantial capital expenditures of which a buyer will directly benefit include: 2019: two new water heaters; 2020: carpet and tile all guest rooms, wallpaper in all guest rooms and public space, new roof over the pool, sky lights; 2021: carpet restaurant and boardrooms, main building new roof the building.

Investment Highlights

  • Premier Asset | Five-Story | 131 Room Hotel and Restaurant | Price Per Room Of $72,901
  • Minneapolis MSA | Burnsville | High ADR Market
  • Seven Acre Site | Desirable Interstate Location with Great Visibility | High Traffic Counts
  • Total Revenue Historically +$5 million | Substantial Operational Margin Upside Potential
  • Five Story Building Provides Alternative Franchise Opportunities

Exclusively Listed By

  • Jake M. Erickson

    Senior Associate

    (952) 852-9721

    Email Jake

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

    Minneapolis

  • 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

  • Jared Plamann

    Associate

    (952) 852-9745

    Email Jared

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

    Minneapolis

  • Joseph Ferguson

    Associate

    (952) 852-9769

    Email Joseph

    License(s): MN: 40737246

    Minneapolis

Financing By

Hotel-Motel

Best Western Premier Nicollet Inn

Listing Price: $9,550,000

Cap Rate
7.28%
Number of Rooms
131
RevPAR
$48
Gross SF
93,206
Price/Room
$72,901
RRM
2.80
Price/Gross SF
$102.46
Year Built
1984

Investment Highlights

  • Premier Asset | Five-Story | 131 Room Hotel and Restaurant | Price Per Room Of $72,901
  • Minneapolis MSA | Burnsville | High ADR Market
  • Seven Acre Site | Desirable Interstate Location with Great Visibility | High Traffic Counts
  • Total Revenue Historically +$5 million | Substantial Operational Margin Upside Potential
  • Five Story Building Provides Alternative Franchise Opportunities

Investment Overview

Marcus & Millichap Minneapolis is proud to have been selected as exclusive advisor and broker regarding the marketing of the five-story, 131 room, Best Western Premier Nicollet Inn. Situated directly off Interstate 35E, this TripAdvisor Certificate of Excellence-winning hotel is just minutes from the Twin Cities and close to renowned shopping, cultural institutes, and sporting venues. The hotel sits on over seven acres of prime interstate real estate at the 35W/35E interchange. As legacy owners, current ownership has spent over ten years with the asset and have owned and operated since 2010. The next owner will benefit from acquiring a well-maintained structure but more importantly, an experienced staff and team that will keep the hotel operating. With the strong historical performance of the operation, the substantial renovation, substantial site value, and has spent the last ten years under professional management, potential investors can feel confident in pursuing this as an opportunity. The Best Western Premier Nicollet Inn is priced attractively at $72,901 per key, or $9,550,000.00. Far below replacement cost, the existing seven-acre site with 93,205 sq ft, 131 room hotel and restaurant this is an opportunity to acquire a prime metro area asset that has historically generated over $1 million in net operating income. At the listing price, 2021 room revenue multiplier (RRM) is 4.78x. When incorporating other revenue, 2021 total revenue multiplier (TRM) is at an attractive 3.26x. Reviewing 2019 performance, RRM at the listing price equates to 3.43x and a 2019 TRM of 1.89x. Operationally, the hotel has flowed between fifteen to twenty percent of its generated revenue to the bottom line. While still in post-COVID-19 recovery, the hotel generated a 2021 RevPAR of $40.39 versus $58.12 in 2019. Room revenue 2021 totaled $1.99 million compared to historical 2019 room revenue of $2.78 million. In addition to the hotel’s room revenue, the hotel is supported by a substantial food and beverage operation. Combined Year-end 2021 revenue hit $2.86 million compared to the $5.25 million generated during 2019. Stabilized occupancy of between fifty and fifty-five percent with an ADR of $110.00, the asset should be able to re-achieve the historical stabilized room revenue between $2.9 million and $3.2 million during 2022/2023. In conjunction to the hotel, ownership operates the connected restaurant, Morgan’s Farm to Table. The restaurant supports the hotel and utilizes the 3,200 sq ft banquet ballroom with three sections, occupancy of 300 guests. To capture the area’s group demand for below 50 guests, the hotel itself also encompasses two boardrooms and one conference room. Collectively, Morgan’s Farm to Table, banquet, and other revenue totaled just under $1 million for 2021 compared to 2018 figures of $2.35 million and 2019 totaling $2.27 million. Recent substantial capital expenditures of which a buyer will directly benefit include: 2019: two new water heaters; 2020: carpet and tile all guest rooms, wallpaper in all guest rooms and public space, new roof over the pool, sky lights; 2021: carpet restaurant and boardrooms, main building new roof the building.

Exclusively Listed By

  • Jake M. Erickson

    Senior Associate

    (952) 852-9721

    Email Jake

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

    Minneapolis

  • 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

  • Jared Plamann

    Associate

    (952) 852-9745

    Email Jared

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

    Minneapolis

  • Joseph Ferguson

    Associate

    (952) 852-9769

    Email Joseph

    License(s): MN: 40737246

    Minneapolis

Financing By

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