Listed by NAI Sioux Falls, Avison Young - Denver, Avison Young - Atlanta
$3,900,000
The Dakota
Details
Property Type Hospitality
Sub Type Hotel
Square Footage 54,722
Keys 98
NOI $274,033
Occupancy 70%
Year Built 1975
Buildings 1
Stories 2
Acreage 4.000
Zoning C-4, Commercial-Regional
Parking Spaces 184 spaces
Parking per 1,000 SqFt 3.36
Investment Type Value Add
Ownership Fee Simple
99 Room Independent Hotel/Spark Available
Marketing description
The Dakota is currently operated as an extended-stay hotel catering to long-term guests. Featuring 98 rooms (+ a manager’s apartment), a well-appointed water park, and an excellent location. The Dakota appeals to both transient/leisure and corporate travelers. A buyer could choose to operate it as an independent property or leverage one of the newer mid-scale brands from Hilton, IHG, and many others. Spark by Hilton has expressed interest, offering a potential opportunity to reposition the hotel under the sought after Hilton family of brands.
With a history of generating $1.9 million in revenue under a previous owner, the opportunity to purchase and renovate the hotel at a value well below replacement cost presents a compelling investment strategy. This is further supported by the greater Sioux Falls market REVPAR of $77, providing additional potential for outperformance with a strong product and successful management team.
The Property’s civic address is 3200 West Russell Street in Sioux Falls, South Dakota.
Accessibility The Hotel is easily accessible from Interstate 29 and Russell Street.
Investment highlights
- 98 Guestrooms + Manager’s Apartment
- Price per key: $39,795
- Revenue T12 June 2024: $1,377,953
- Occupancy T12 June 2024: 70%
- ADR T12 June 2024: $53.92
- NOI T12 June 2024: $274,033
- Net Operating Percentage T12 June 2024: 19.9%
- Two-story, Interior Corridor
- Hilton, IHG, and other Brand Conversion Opportunity
- Discount to Replacement Cost
- Growing Population in an Expanding Market
- Co-listed with Avison Young
Listing Contacts
Listed by NAI Sioux Falls, Avison Young - Denver, Avison Young - Atlanta
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Loan Amount
$0.00
Annual Debt Service
$--
$--
Annual Cash Flow
$274,033.00
$22,836.08/mo
Valuation Metrics
0
DSCR
7.03%
Cap Rate
7.03%
ROI
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