Overview
HREC Investment Advisors (“HREC IA”) is pleased to offer, to qualified investors, the opportunity to acquire the 215-room Radisson Hotel Bismarck (“Hotel” or “Property”), situated at 605 E Broadway Ave, Bismarck, ND 58501.
The Radisson Hotel Bismarck presents a prime investment opportunity with its strategic location in the heart of Downtown Bismarck, North Dakota’s capital city. Situated amidst a hub of healthcare, government, and event-driven demand generators, the Hotel benefits from its proximity to key attractions such as Sanford Health, St. Alexius Medical Center, and the Bismarck Event Center. These institutions draw a steady stream of visitors and professionals to the area. With its diverse range of dining options, including the Terrace Restaurant and Off Broadway Lounge, and over 12,000 square feet of meeting space, the Radisson Hotel Bismarck is well-positioned to cater to both business and leisure travelers, as well as larger group events.
Furthermore, Bismarck's growing energy sector and the presence of major corporations like BNI Energy and MDU Resources offer additional economic stability and potential for growth. The hotel's proven financial performance, demonstrated by a 15.0% NOI margin and a significant 41.7% increase in NOI since YE 2022, underscores its profitability and future upside potential. Unencumbered by a management, the Hotel provides flexibility for a new Owner to optimize operations and capitalize on the city's thriving economic landscape. With its fee simple tenure and attractive location, the Radisson Hotel Bismarck is a compelling investment in a strong market.
Investment Highlights
Urban Core Location, Surrounded by Diverse Demand Generators
Downtown Bismarck, the capital city of North Dakota, is a vibrant hub for healthcare, events, and government, anchored by Sanford Health and St. Alexius Medical Center. The Bismarck Event Center, located within walking distance from the Hotel, hosts a variety of events, accommodating up to 10,000 attendees, while the North Dakota State Capitol adds historical significance with its striking Art Deco architecture. Conveniently located in the heart of downtown, the Hotel offers easy access to these key attractions, making it an ideal choice for visitors.
Bismarck’s Growing Energy Industry
Bismarck serves as a pivotal hub for the energy industry, particularly in mining and coal production, with key players like BNI Energy and MDU Resources contributing significantly to the local economy and energy landscape. These companies not only provide essential energy services but also play a vital role in job creation and economic diversification, making Bismarck an attractive location for talent in the energy sector.
Substantial Ancillary Revenue
The Hotel offers several additional streams of revenue, in addition to the guestrooms. Terrace Restaurant and Off Broadway Lounge provide full-service dining, as well as video gaming, on-site. The Hotel also generates additional lease revenue from Guided Hands Therapeutic Massage, located inside of the Hotel. Additionally, with 16 event venues totaling over 12,000 square feet of meeting space, the Radisson is an ideal option for meetings and events in the center of North Dakota’s capital city.
Proven Historical Cash Flow with Upside Potential
The Hotel currently operates with a 15.0% NOI margin, historically achieving higher margins, indicating its positive cash flow capability. Additionally, NOI has been trending upward, and the Hotel has increased its NOI by 41.7% since YE 2022 (as of June 2024 TTM period). A new Owner has substantial potential to enhance profitability through strategic cost control, aggressive revenue management, and attracting more group events to leverage the Hotel’s extensive meeting space.
Unencumbered by Management
The Hotel is being offered unencumbered by a management group, allowing for a new Owner to bring in a new management company or to act as an owner/operator of the Property.
Fee Simple Interest
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