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Hotel-Motel

Williston, ND 3 - Property Portfolio

3701 4th Ave W, Williston, ND 58801

Listing Price: Request For Offer

Number of Rooms
246
RevPAR
$79
Year Built
2011

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 246 room Williston, North Dakota Three Property Portfolio (‘Hotels’ or ‘Properties’) including three Williston, North Dakota Properties: Holiday Inn Express & Suites Williston, Candlewood Suites Williston, and Hawthorn Suites Williston. This set of high-quality Hotels has performed exceptionally well, historically demonstrated exceptional topline revenue, producing strong cash flows since inception. Combined, the portfolio recorded over $2.735 million of net operating income (NOI) in 2019, which translates to 38 percent of gross revenues, after a four percent capital replacement reserve and three percent management fee. The three North Dakota Properties are located adjacent to each other, producing economies of scale for the operator. The North Dakota inventory skews towards more cost-efficient lodging, as over 55 percent of rooms are economy or midscale. Occupancies in the state have seen a major increase compared to last year, which bottomed out at just 20 percent in April 2020. In August 2021, over 460,000 rooms were sold, a significant increase of 18.8 percent compared to the same period the prior year. The market has seen major trends pointing to a full recovery from the hospitality downturn in 2020 and is forecasted to increase occupancy to over 70 percent, passing the historic average. The hospitality construction pipeline is empty, which should lead to increased demand for existing builds. North Dakota brings in over 22.6 million visitors annually, mostly attributed to outdoor attractions like Maah Daah Hey Trail, Lewis & Clark Trail, and the Theodore Roosevelt National Park. Locally, the Williston hospitality market is supported largely by the agriculture and oil industries. The city sits atop the Bakken formation, which is thought to be the most oil-productive site in the United States.

Investment Highlights

  • Over $7.1 Million in Combined Gross Revenues and $2.735 Million of Net Operating Income (NOI) in 2019
  • Investment Opportunity to Capitalize on the Anticipated Economic Demand Generated from Increased O&G Production in the Region
  • Adjacent to the 800-acre Williston Square Development Which is Expected to include a New Sanford Health hospital and specialty clinic, a Civic Center, Mixed Retail and Dining, and New Residences

Exclusively Listed By

Broker of Record

  • Jon Ruzicka

    First Vice President Investments

    (952) 852-9700

    License(s) ND: 10032

    North Dakota

Financing By

Hotel-Motel

Williston, ND 3 - Property Portfolio

Listing Price: Request For Offer

Number of Rooms
246
RevPAR
$79
Year Built
2011

Investment Highlights

  • Over $7.1 Million in Combined Gross Revenues and $2.735 Million of Net Operating Income (NOI) in 2019
  • Investment Opportunity to Capitalize on the Anticipated Economic Demand Generated from Increased O&G Production in the Region
  • Adjacent to the 800-acre Williston Square Development Which is Expected to include a New Sanford Health hospital and specialty clinic, a Civic Center, Mixed Retail and Dining, and New Residences

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 246 room Williston, North Dakota Three Property Portfolio (‘Hotels’ or ‘Properties’) including three Williston, North Dakota Properties: Holiday Inn Express & Suites Williston, Candlewood Suites Williston, and Hawthorn Suites Williston. This set of high-quality Hotels has performed exceptionally well, historically demonstrated exceptional topline revenue, producing strong cash flows since inception. Combined, the portfolio recorded over $2.735 million of net operating income (NOI) in 2019, which translates to 38 percent of gross revenues, after a four percent capital replacement reserve and three percent management fee. The three North Dakota Properties are located adjacent to each other, producing economies of scale for the operator. The North Dakota inventory skews towards more cost-efficient lodging, as over 55 percent of rooms are economy or midscale. Occupancies in the state have seen a major increase compared to last year, which bottomed out at just 20 percent in April 2020. In August 2021, over 460,000 rooms were sold, a significant increase of 18.8 percent compared to the same period the prior year. The market has seen major trends pointing to a full recovery from the hospitality downturn in 2020 and is forecasted to increase occupancy to over 70 percent, passing the historic average. The hospitality construction pipeline is empty, which should lead to increased demand for existing builds. North Dakota brings in over 22.6 million visitors annually, mostly attributed to outdoor attractions like Maah Daah Hey Trail, Lewis & Clark Trail, and the Theodore Roosevelt National Park. Locally, the Williston hospitality market is supported largely by the agriculture and oil industries. The city sits atop the Bakken formation, which is thought to be the most oil-productive site in the United States.

Exclusively Listed By

Broker of Record

  • Jon Ruzicka

    First Vice President Investments

    (952) 852-9700

    License(s): ND: 10032

    North Dakota

Financing By

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