Overview
HREC Investment Advisors (“HREC IA”) is pleased to offer, to qualified investors, the opportunity to acquire the fee-simple interest in the 60-room Hampton Inn Orange City (“Hotel” or “Property”), situated at 914 8th St SE, Orange City, IA 51041.
The Hampton Inn Orange City, opened in 2014, presents a compelling opportunity to acquire a premium-branded, well-located, and strong-performing hotel with upside potential. Located in a growing Iowa city, the Property benefits from its central location proximate to a diverse range of lodging demand generators, such as higher education, healthcare, corporate presence, residential infrastructure, farming, as well as major facilities and plants. The city also draws over 100,000 visitors each year to its massive Tulip Festival, running annually in May since 1936.
The Hotel exhibits strong, consistent top-line performance, annually increasing its room revenues and outperforming its competitive set, as well as winning Hilton’s Conrad Achievement award in all qualifying years since 2016. A new owner will have the opportunity to further enhance profitability by building on this solid operating foundation through refined operational efficiencies and thoughtful cost-management strategies, without the need for significant near-term capital expenditures. Furthermore, the Property benefits from substantial visibility and credibility due to its affiliation with the globally recognized Hilton brand, as well as from limited current and projected competition in the market.
Investment Highlights
Premium Branded Property with Limited Competition
The Property benefits from its affiliation with the Hilton brand, generating consistent exposure and demand through online booking platforms and Hilton’s +235 million loyalty members. It is one of only two hospitality properties in the city and the only Hilton-branded property within a 35-mile radius. Additionally, no hotels are under construction, proposed, or in final planning within 40 miles, ensuring no new supply in the near future.
Strong & Consistent Performance
The Hotel has generated over $1.8M in room revenues since 2023, with steadily increasing top-line revenues since the pandemic. It currently ranks 2nd out of 5 hotels within its STR competitive set in RevPAR performance, with over 127% penetration in 2025.
Minimal Anticipated PIP
The current owners completed more than $1.3 million in renovations in 2024, representing approximately $22,000 per room. In addition to this major capital project, they have consistently invested in the property’s upkeep over time, positioning the next owner to benefit from a well-maintained and recently updated hotel.
Award Winning Quality and Guest Satisfaction
The Hampton Inn Orange City has won Hilton’s Conrad Achievement Award (previously named the Lighthouse Award) in every qualifying year since 2016. The Conrad Achievement Award is one of Hilton’s highest honors, recognizing hotels that rank within the top 1% of their brand based on Hilton’s Total Quality Score, a comprehensive measure that includes guest satisfaction, service quality, cleanliness, problem resolution, and overall quality-assurance performance. In 2015, its first year of operations, the Hotel won the Circle of Excellence award for ranking in the top 10% of Hamptons.
Opportunity for Greater Bottom Line
The Property provides a new owner with the flexibility to either self-operate or engage a third-party operator. The Hotel currently demonstrates a 14.6% NOI flow-through, with meaningful upside available through improved operational efficiency, tighter cost controls, and more strategic revenue and yield management.
Proximity to Strong and Diverse Demand Generators
Nearby businesses, higher education, and residential neighborhoods create steady lodging demand, while the annual Orange City Tulip Festival draws an estimated 100,000 visitors. Additionally, Northwestern College and companies such as Diamond Vogel, Staples, Pizza Ranch, Sekisui Aerospace, Corteva Agriscience, CQ Medical, Smithfield, Vogel Traffic Services, Revival Animal Health, Dexter, and Van Beek Natural Science have a significant presence in Orange City.
Fee Simple Interest
The Property will be offered as fee simple.
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