Overview
HREC Investment Advisors (“HREC IA”) is pleased to offer to qualified investors, the opportunity to acquire the fee-simple interest in the 80-room Holiday Inn Express & Suites Parsons and Parsons Conference Center (referred to as “Properties” or “Assets”), located at 1500 Cattle Dr., Parsons, Kansas 67357.
The Holiday Inn Express & Suites Parsons and Parsons Conference Center is located along U.S. Highway 400 in Parsons, Kansas, between Kansas City, Missouri, and Tulsa, Oklahoma. The Property is the newest hotel within 30 miles and the only IHG-branded hotel within 20 miles. The guestrooms feature amenities such as televisions with cable programming, in-room coffee makers, and in-room workspaces. The Hotel also offers great amenities including an indoor pool, business center, and fitness center, as well as Wi-Fi and free self-parking onsite.
Located at the intersection of U.S. Routes 59 and 400, Parsons, Kansas, is the most populous city in Labette County and the second-largest city in the southeastern region of the state. The Great Plains Industrial Park (GPIP) is driving the region’s economic development, fostering a growing corporate presence with significant projects currently underway. Parsons is also home to Labette Health, the region's only general hospital, as well as Parsons State Hospital and Training Center. The City is a hub for major corporate demand generators, including Ducommun Aerostructures, Tintagel Group Inc., Dayton Superior Corporation, Old Dominion Freight, and Magnum Systems.
The Holiday Inn Express & Suites Parsons and Parsons Conference Center offer a strategic investment opportunity in a community experiencing economic expansion through redevelopments such as the Great Plains Industrial Park (GPIP), which is drawing companies such as Tintagel Group to expand and invest millions in Parsons. The Assets are located directly at the intersection of two U.S. Routes and near the Union Pacific Railroad, providing excellent visibility and transportation options for travelers.
Investment Highlights
Sole IHG Property in Parsons – Newest Hotel: The Property is distinguished as both the newest hotel in Parsons and the sole IHG-branded hotel in the area, allowing for greater RevPAR capture among its competitive set. The Property also benefits from its IHG brand affiliation, which offers significant marketing benefits, increased brand recognition, and access to a global loyalty program with over 100 million members.
Strong In-Place Cash Flows: The Property has achieved over $2.0 million in room revenue since 2023 and has averaged nearly 35% NOI flow-through since 2022.
Tax Incentive Grant in Effect: The City of Parsons, Kansas is under agreement with the Property to grant a total of $1.415M to the Owner of the Hotel and Conference Center in the form of yearly payments equal to the yearly amount of sales tax generated and 70% of the yearly amount of transient guest tax generated. There is currently $1.335M to be collected from the City under this Incentive Agreement if the terms of the agreement are met by a new Owner.
Topline Upside Opportunity: Ranked 3 of 5 in its competitive set in RevPAR, the Property exhibits an ADR growth opportunity, allowing new ownership, through careful revenue management techniques, to significantly increase topline revenues with minimal impact to overall NOI flow-through.
Terrific Location near Major Demand Generators: The Holiday Inn Express & Suites Parsons enjoys a highly visible and accessible location off U.S. Route 400, which connects to U.S. Route 59. The Hotel is located less than four miles from a mix of major demand generators such as Parsons State Hospital and Training Center, Ducommun Aerostructures, Parsons Arboretum, Labette Community College, and more.
New Great Plains Industrial Park: Located about five miles from the Hotel, Great Plains Industrial Park (GPIP) is a new large industrial development in southeast Parsons. The site became available in 2009 and has been redeveloped to attract regional and national innovation firms. In 2024, GPIP initiated a lease with Tintagel Group Inc. for munitions manufacturing, projecting 100 new jobs and a $35M investment. There are plans for multiple groundbreakings in 2025, including a utility-scale solar array and fuel facilities. The park is projected to cost $6 billion in capital investments and to create 960 new jobs from upcoming projects.
Attractive Basis – Well Below Replacement Cost: The national average cost of building a hotel has increased significantly in the past few years. The Hotel provides an investor with the opportunity to acquire a well-located Property, unencumbered by debt and management, at pricing well below current construction costs (even after the completion of PIP).
Fee Simple Interest: The Property will be offered as fee simple.
Upside from Replacing Existing Management: The Holiday Inn Express & Suites Parsons presents an excellent opportunity for an investor to purchase the Hotel unencumbered by a management agreement. Investors have the chance to bring in a new management company or self-operate and revamp the operational strategy of the Hotel.
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