Overview
HREC Investment Advisors (“HREC IA”) is pleased to offer, to qualified investors, the opportunity to acquire the fee-simple interest in the 75-room Holiday Inn Express Fargo – West Acres (“Hotel” or “Property”), situated at 1040 40th St S, Fargo, North Dakota 58103.
The Holiday Inn Express Fargo – West Acres presents the investors with a compelling opportunity to acquire a newly renovated asset in the most populous and fastest-growing city in North Dakota, which experienced over 12% growth since the 2020 census. Additionally, the Property benefits from the nationally recognized IHG brand, with proven operational systems, marketing support, and loyalty program access. Most notably, this turnkey asset has no property improvement plan (PIP) requirements, allowing a new owner to capture strong post-renovation RevPAR without having to allocate significant capital and resources on a renovation.
Positioned directly off Interstate 29 and just over a mile from Interstate 94, the Hotel experiences strong visibility and connectivity for roadway travelers. The Property also benefits from proximity to the Sanford Health Center, under three miles away, where 60% of patients travel from outside of the Fargo metro area.
Fargo’s economy thrives on a diverse structure of manufacturing, agriculture, technology, and healthcare. It hosts many company headquarters like Doosan Bobcat, Red River Commodities, Botlink, Packet Digital, Titan Machinery, and Blue Cross Blue Shield of North Dakota. Other demand drivers include the annual Fargo Film Festival, which brings in 80,000 people annually, Scheels Arena, the Hjemkonst Center, and the Red River Zoo.
This combination of leisure, healthcare, and business presence contributes to consistent occupancy and positions the Holiday Inn Express Fargo – West Acres as a strategically located asset with strong and diverse lodging demand.
Investment Highlights
Recently Renovated Turnkey Asset
Recent renovations reduce near-term capital requirements, allowing a new owner to capture higher “ramp-up” RevPAR and focus on operational performance rather than additional investment.
Premium Location
Along I-29, the Holiday Inn Express captures business demand from nearby companies, such as TrueNorth Steel (1.5 miles), Red River Commodities (2.5 miles), and Blue Cross Blue Sheild North Dakota (1.3 miles)Other drivers like the Sanford Medical Center (2.7 miles), the Red River Zoo (1.9 miles), and Thunder Road (2.3 miles) contribute to lodging demand.
Strong Consistent Revenues
Despite renovation periods, the Property consistently earns over $2.1 million in annual revenues, portraying a stable market and low-risk performance.
Block and Plank Construction
The Block and Plank Construction is very fire resistant, has fewer structural issues, better noise absorption, and is extremely durable. This creates lower utilities cost and capital expenditures for future owners.
Offered Well Below Replacement Cost
The opportunity to acquire this asset well below replacement cost allows an investor to benefit substantially from a combination of location in a growing economy and upside opportunity. The national average cost of building a hotel has increased significantly in the past few years. Given the size and condition of this Hotel, as well as the increased cost of labor and supplies in today’s market, we can reasonably assume that the construction of this Property would be significantly more than the target selling price of this asset.
Offered Unencumbered by Management
The Holiday Inn Express is being offered unencumbered by a management agreement. An investor possesses the opportunity to bring in a new management company or to act as an owner/operator and seek to revamp the operational strategy of the Hotel, implement strategic cost control initiatives, and employ more aggressive yield management strategies.
Fee Simple Interest
The Property will be offered as fee simple.
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