Hotel-Motel

Holiday Inn Express Onalaska

9409 Highway 16, Onalaska, WI 54650

Listing Price: $5,300,000

Cap Rate
8.89%
Number of Rooms
75
RevPAR
$72
Gross SF
55,602
Price/Room
$70,667
RRM
2.68
Price/Gross SF
$95.32
Year Built
1996

Investment Overview

Marcus & Millichap is proud to be the Exclusive Representative of the Holiday Inn Express in Onalaska, WI. This perfectly located limited-Service 3-Story, 75 room hotel was built in 1996 with wood frame construction. The hotel is priced far below market metrics at a 2.7 Room Revenue Multiplier and a 20% cash on cash with a listing price of $5,500,000 per June 2019 trailing 12-month revenues. This is an opportunity to acquire a well-established property in the currently under supplied La Crosse Onalaska market with growing demand generators. Geographically located in the center of Wisconsin western border with Minnesota, the La Crosse Onalaska market benefits from being Wisconsin's 12 largest metros.

The hotel has had a successful run with IHG and the next owner will have to opportunity to re-position from an IHG Holiday Inn Express franchise to a more lucrative Best Western Membership agreement. A new owner will be responsible to complete a full conversion PIP with industry estimates ranging from $15,000 per key to $20,0000 per key.

Operationally, the hotel is pushing about twenty eight percent of the achieved $2,020,111 in room revenue through to the bottom line before debt service, management and reserves operating as a Holiday Inn Express. This results in a net operating income of roughly $554k after factoring in a three percent management fee and two percent reserve. Post conversion we have expectations of $100 ADR and 65% Occupancy pushing an estimated post renovation revenue to about $1.7 million. The Holiday Inn Express Onalaska is offered fee simple, unencumbered by management, franchise, and debt.

Investment Highlights

  • Highly Sought After 3 Story 75 Room Upper Mid Scale Property
  • Desirable La Crosse/Onalaska Market | Sufficient Demand Generators
  • Desirable Market Sufficient Demand Generators
  • Best Western Conversion Opportunity

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

Financing By

Hotel-Motel

Holiday Inn Express Onalaska

Listing Price: $5,300,000

Cap Rate
8.89%
Number of Rooms
75
RevPAR
$72
Gross SF
55,602
Price/Room
$70,667
RRM
2.68
Price/Gross SF
$95.32
Year Built
1996

Investment Highlights

  • Highly Sought After 3 Story 75 Room Upper Mid Scale Property
  • Desirable La Crosse/Onalaska Market | Sufficient Demand Generators
  • Desirable Market Sufficient Demand Generators
  • Best Western Conversion Opportunity

Investment Overview

Marcus & Millichap is proud to be the Exclusive Representative of the Holiday Inn Express in Onalaska, WI. This perfectly located limited-Service 3-Story, 75 room hotel was built in 1996 with wood frame construction. The hotel is priced far below market metrics at a 2.7 Room Revenue Multiplier and a 20% cash on cash with a listing price of $5,500,000 per June 2019 trailing 12-month revenues. This is an opportunity to acquire a well-established property in the currently under supplied La Crosse Onalaska market with growing demand generators. Geographically located in the center of Wisconsin western border with Minnesota, the La Crosse Onalaska market benefits from being Wisconsin's 12 largest metros.

The hotel has had a successful run with IHG and the next owner will have to opportunity to re-position from an IHG Holiday Inn Express franchise to a more lucrative Best Western Membership agreement. A new owner will be responsible to complete a full conversion PIP with industry estimates ranging from $15,000 per key to $20,0000 per key.

Operationally, the hotel is pushing about twenty eight percent of the achieved $2,020,111 in room revenue through to the bottom line before debt service, management and reserves operating as a Holiday Inn Express. This results in a net operating income of roughly $554k after factoring in a three percent management fee and two percent reserve. Post conversion we have expectations of $100 ADR and 65% Occupancy pushing an estimated post renovation revenue to about $1.7 million. The Holiday Inn Express Onalaska is offered fee simple, unencumbered by management, franchise, 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

Financing By

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