HREC Investment Advisors is pleased to introduce the opportunity to acquire the fee simple interest in the Nebraska IHG 2-Hotel Portfolio (referred to herein as “Hotel” or “Property” or “Hotels” or “Properties”) which can be purchased individually or as a portfolio.
The Holiday Inn Express Lincoln Airport, located at 1101 West Commerce Way in Lincoln, presents an opportunity to acquire a strong-branded asset in Nebraska's capital city. The Hotel is easily visible from the highly traveled I-80 throughway that runs through Lincoln, generating transient leisure travel and trucking demand. Lincoln is recognized as one of the Midwest's most robust real estate markets, benefiting from a unique combination of stable demand drivers, including the University of Nebraska's flagship campus with over 25,000 students, which generates a consistent influx of visitors for academic events and sports. Additionally, Lincoln's role as the state capital of Nebraska creates a steady stream of government-related demand. This diverse mix of educational, governmental, and corporate demand—including major companies like Nelnet and Ameritas Life Insurance—creates a resilient market environment that is rarely matched by other Midwestern cities.
The Holiday Inn Express McCook located at 711 N Highway 83 in McCook, benefits significantly from McCook's status as the hub of southwest Nebraska and stands out as the only well-established, upper-midscale asset within a 75-mile radius. The Property is in top condition compared to the rest of the region and can significantly exceed local rates during peak demand periods. McCook is at the intersection of two of the longest running highways in the US, Highways 83 and 34, and serves as a stop on the California Zephyr, an East-West Amtrak route. Popular activities in McCook include outdoor activities such as world-renowned hunting and fishing, as well as rodeo events and livestock shows at the Kiplinger Arena.
Lincoln: Resilient Capital City Market
The Lincoln asset offers a stable investment in a proven recession-resilient market, situated in Nebraska's capital city and home to the state's flagship university. Google is also constructing a $600M data center in Lincoln.
McCook: Dominant Regional Asset
As the only upscale branded hotel within a 75-mile radius, the McCook property commands strong market visibility and dominance.
Strong RevPAR Growth
Both assets have demonstrated robust RevPAR growth as of the September 2024 TTM period, with Lincoln up 12% and McCook up 13.5% year-over-year, while their respective competitive sets have experienced RevPAR declines.
15-Year License Expected with No PIP
Upon acquisition, neither property will be subject to a mandatory change-of-ownership PIP. IHG will provide a deficiency list, which is expected to result in minimal capital investment following acquisition. As part of the transaction, both hotels will be granted new 15-year licenses with IHG.
Portfolio Acquisition Opportunity
This offering presents the chance to acquire two investment-grade properties, enabling rapid scaling and efficient capital deployment. The Hotels are available for an individual or combined purchase.
IHG Brand Affiliation
The Properties benefit from their association with IHG, a world-renowned hotel company, including access to the IHG Rewards Club and reservation system.
Offered Unencumbered by Management
The Properties will be offered unencumbered by a management agreement. A new owner/operator has the opportunity to revamp the operational strategies of the Hotels, implement strategic cost control initiatives and employ more aggressive revenue management strategies.
Offered Well Below Replacement Cost
The opportunity to purchase these hotels significantly below replacement cost positions investors to capitalize on the growing local economy and property upside.