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Hotel-Motel

Quality Inn Pierre - Fort Pierre

410 West Sioux Avenue, Pierre, SD 57501

Listing Price: $2,800,000

Cap Rate
5.64%
Number of Rooms
58
RevPAR
$31
Price/Room
$48,276
RRM
4.30
Year Built
1994

Investment Overview

As the exclusive representative of the seller, Marcus & Millichap's National Hospitality Division is pleased to present for sale to qualified investors the Quality Inn Pierre – Fort Pierre (‘Hotel’ or ‘Property’). The Choice Hotels International - branded Hotel is offered at $2,800,000 or $48,276 per key. Pierre is the capital city of South Dakota and the principal city of the Pierre Micropolitan Statistical Area, which maintains 20,624 people according to 2019 estimates. Known for its outdoor leisure activities and natural beauty, tourism and visitation brought in $78.5 million and held a 25.64 percent share of tourism in the Missouri River Region through 2018. The Hotel sits on 1.1 acres just off U.S. Highway 83, offering excellent visibility to over 15,150 vehicles per day. The Property’s ideal location allows easy access to a variety of demand generators in the area such as the Missouri River (3.0 miles), Lake Oahe and Oahe Dam (8.0 miles), South Dakota’s State Capital Building (1.0 miles), Verendrye Museum (2.2 miles), and the South Dakota National Guard Museum (0.6 miles). In 2019, the Hotel recorded room revenues over $773,400 and maintained a healthy net operating income over $222,780 or 28.8 percent of total revenues, after a 4 percent reserve for capital replacements. The Property has historically underperformed the STR-competitive set and posted a RevPAR penetration index of 69 percent in 2019. This offering presents a new investor the opportunity to acquire a recently renovated asset with major upside. An experienced owner-operator can implement strategic revenue management strategies to increase revenues and further capture market share.

Investment Highlights

  • Two-Story, 58-Room, Limited-Service, Recently Renovated Hotel
  • Priced Below Replacement Cost at $48,276 Per Key
  • Excellent Location in Downtown Pierre - South Dakota's Capital
  • Well-Maintained Asset with Minimal to No PIP Expected
  • Major Upside Potential for New Owner to Implement Better Revenue Management Strategies to Increase Market Share

Exclusively Listed By

Broker of Record

  • Jon Ruzicka

    First Vice President Investments

    (952) 852-9700

    License(s) SD: 17724

    South Dakota

Financing By

Hotel-Motel

Quality Inn Pierre - Fort Pierre

Listing Price: $2,800,000

Cap Rate
5.64%
Number of Rooms
58
RevPAR
$31
Price/Room
$48,276
RRM
4.30
Year Built
1994

Investment Highlights

  • Two-Story, 58-Room, Limited-Service, Recently Renovated Hotel
  • Priced Below Replacement Cost at $48,276 Per Key
  • Excellent Location in Downtown Pierre - South Dakota's Capital
  • Well-Maintained Asset with Minimal to No PIP Expected
  • Major Upside Potential for New Owner to Implement Better Revenue Management Strategies to Increase Market Share

Investment Overview

As the exclusive representative of the seller, Marcus & Millichap's National Hospitality Division is pleased to present for sale to qualified investors the Quality Inn Pierre – Fort Pierre (‘Hotel’ or ‘Property’). The Choice Hotels International - branded Hotel is offered at $2,800,000 or $48,276 per key. Pierre is the capital city of South Dakota and the principal city of the Pierre Micropolitan Statistical Area, which maintains 20,624 people according to 2019 estimates. Known for its outdoor leisure activities and natural beauty, tourism and visitation brought in $78.5 million and held a 25.64 percent share of tourism in the Missouri River Region through 2018. The Hotel sits on 1.1 acres just off U.S. Highway 83, offering excellent visibility to over 15,150 vehicles per day. The Property’s ideal location allows easy access to a variety of demand generators in the area such as the Missouri River (3.0 miles), Lake Oahe and Oahe Dam (8.0 miles), South Dakota’s State Capital Building (1.0 miles), Verendrye Museum (2.2 miles), and the South Dakota National Guard Museum (0.6 miles). In 2019, the Hotel recorded room revenues over $773,400 and maintained a healthy net operating income over $222,780 or 28.8 percent of total revenues, after a 4 percent reserve for capital replacements. The Property has historically underperformed the STR-competitive set and posted a RevPAR penetration index of 69 percent in 2019. This offering presents a new investor the opportunity to acquire a recently renovated asset with major upside. An experienced owner-operator can implement strategic revenue management strategies to increase revenues and further capture market share.

Exclusively Listed By

Broker of Record

  • Jon Ruzicka

    First Vice President Investments

    (952) 852-9700

    License(s): SD: 17724

    South Dakota

Financing By

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