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Hotel-Motel

Comfort Inn Eden Prairie - Minneapolis (Conversion to Holiday Inn Express)

7740 Flying Cloud Dr., Eden Prairie, MN 55344

Listing Price: $5,200,000

Cap Rate
8.92%
Number of Rooms
119
RevPAR
$37
Price/Room
$43,697
RRM
3.23
Year Built
1987

Investment Overview

Marcus & Millichap is proud to have been chosen as exclusive advisor and broker in regard to the marketing effort of the Comfort Inn Eden Prairie – Minneapolis. The property was originally built in 1987 as a Hampton Inn, features 119 guestrooms and is three stories tall. It is being offered as a potential conversion to Holiday Inn Express with approval and PIP in hand; PIP will only be provided to Buyer once formally under contract. The property could also be purchased with the intent to maintain the current brand affiliation as its recent conversion to Comfort Inn included renovating to the brand’s most recent standards. This offering presents an opportunity to acquire a well-positioned suburban Minneapolis hotel on a large and interstate visible lot at the highly traveled intersection of Highways 212 and 494; Interstate 494 is one of Minnesota’s busiest thoroughfares. The hotel is a direct beneficiary of the abundance of both leisure and business demand generators that the 494 corridor provides including MSP International Airport, Mall of America and an overall dense retail and office composition. The property is also located directly off of the future Southwest Green Line Light Rail Extension which will increase accessibility for both local guests as well as those traveling through MSP Airport or from downtown Minneapolis. The property is priced under $44,000 per room, once renovation and/or PIP costs are included the total acquisition price is still considerably below replacement cost. The property offers substantial upside potential as it has consistently underperformed its competitive set by over fifty percent; its RevPAR index consistently falls between forty and forty-five percent. The ample size of the parking accommodations also provides the opportunity to capture truck and bus business which may be viewed as a marketing niche to drive room nights. The hotel is located in the desirable southwest Minneapolis suburb of Eden Prairie. Eden Prairie is a first ring suburb of Minneapolis that is experiencing substantial residential and business growth. The hotel is located approximately ten miles from Minneapolis-St. Paul International Airport and 14 miles from Downtown Minneapolis.

Investment Highlights

  • Rarely Marketed Opportunity to Acquire an Upper Midscale Limited Service Hotel within the Minneapolis MSA
  • Opportunity to Convert to Holiday Inn Express or Maintain Affiliation with Choice Hotels; IHG Approval and PIP in Hand for Qualified Franchisees
  • Substantial Upside Potential as the Property Consistently Generates a RevPAR Index of Only Forty to Forty-Five Percent
  • Location Off of the Interstate 494 Corridor and Immediately Adjacent to the Future Southwest Green Line Light Rail Extension
  • Large Parcel of Nearly Three Acres Provides Ample Parking for Oversized Vehicles as Well as Future Land Value
  • Priced Well Below Replacement at Under $44,000 per Room Plus the Cost of Renovation and/or Conversion

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

Comfort Inn Eden Prairie - Minneapolis (Conversion to Holiday Inn Express)

Listing Price: $5,200,000

Cap Rate
8.92%
Number of Rooms
119
RevPAR
$37
Price/Room
$43,697
RRM
3.23
Year Built
1987

Investment Highlights

  • Rarely Marketed Opportunity to Acquire an Upper Midscale Limited Service Hotel within the Minneapolis MSA
  • Opportunity to Convert to Holiday Inn Express or Maintain Affiliation with Choice Hotels; IHG Approval and PIP in Hand for Qualified Franchisees
  • Substantial Upside Potential as the Property Consistently Generates a RevPAR Index of Only Forty to Forty-Five Percent
  • Location Off of the Interstate 494 Corridor and Immediately Adjacent to the Future Southwest Green Line Light Rail Extension
  • Large Parcel of Nearly Three Acres Provides Ample Parking for Oversized Vehicles as Well as Future Land Value
  • Priced Well Below Replacement at Under $44,000 per Room Plus the Cost of Renovation and/or Conversion

Investment Overview

Marcus & Millichap is proud to have been chosen as exclusive advisor and broker in regard to the marketing effort of the Comfort Inn Eden Prairie – Minneapolis. The property was originally built in 1987 as a Hampton Inn, features 119 guestrooms and is three stories tall. It is being offered as a potential conversion to Holiday Inn Express with approval and PIP in hand; PIP will only be provided to Buyer once formally under contract. The property could also be purchased with the intent to maintain the current brand affiliation as its recent conversion to Comfort Inn included renovating to the brand’s most recent standards. This offering presents an opportunity to acquire a well-positioned suburban Minneapolis hotel on a large and interstate visible lot at the highly traveled intersection of Highways 212 and 494; Interstate 494 is one of Minnesota’s busiest thoroughfares. The hotel is a direct beneficiary of the abundance of both leisure and business demand generators that the 494 corridor provides including MSP International Airport, Mall of America and an overall dense retail and office composition. The property is also located directly off of the future Southwest Green Line Light Rail Extension which will increase accessibility for both local guests as well as those traveling through MSP Airport or from downtown Minneapolis. The property is priced under $44,000 per room, once renovation and/or PIP costs are included the total acquisition price is still considerably below replacement cost. The property offers substantial upside potential as it has consistently underperformed its competitive set by over fifty percent; its RevPAR index consistently falls between forty and forty-five percent. The ample size of the parking accommodations also provides the opportunity to capture truck and bus business which may be viewed as a marketing niche to drive room nights. The hotel is located in the desirable southwest Minneapolis suburb of Eden Prairie. Eden Prairie is a first ring suburb of Minneapolis that is experiencing substantial residential and business growth. The hotel is located approximately ten miles from Minneapolis-St. Paul International Airport and 14 miles from Downtown Minneapolis.

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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