Overview
HREC Investment Advisors (“HREC IA”) is pleased to offer, to qualified investors, the opportunity to acquire the fee-simple interest in the 198-room Holiday Inn & Suites Des Moines Northwest (“Hotel” or “Property”), situated at 4800 Merle Hay Rd, Urbandale, IA 50322.
The Holiday Inn & Suites Des Moines Northwest represents the opportunity to acquire an institutionally owned and operated full-service asset positioned in a highly accessible location along Interstate 80, a primary east-west corridor traversing the central United States. This positioning supports consistent transient demand from both regional and long-distance travelers.
The Property benefits from proximity to a diverse set of demand generators, including major employers such as John Deere, Berkley Technology Services, Principal Financial Group, Nationwide Insurance, and the Wells Fargo home Mortgage Campus, as well as regional healthcare providers including UnityPoint Health – Iowa Methodist Medical center and MercyOne Des Moines Medical Center. The Hotel is also located near Drake University and key government-related demand associated with Des Moine’s role as the state capital.
The Holiday Inn & Suites Des Moines offers a compelling opportunity to acquire a well-located, highly accessible asset along a major interstate corridor, in a highly diversified market.
Investment Highlights
Value-Add Opportunity
With franchise expiration in early 2027, there is significant flexibility for a new owner to reposition the asset based on evolving market demand and investment strategy with minimal liquidated damages. Maintaining renovated common areas, ownership can focus future capital on pursuing a rebranding initiative, or exploring an alternative operational concept entirely. This optionality creates multiple paths to drive long-term value through targeted renovations, operational enhancements, and repositioning strategies tailored to the needs of the market.
Strong and Stable Revenues with Significant Upside Opportunity
The Property consistently earns over $3.5 million in room revenue and over $2 million in revenue from food and beverage operations since 2022. With such strong revenues, new management can focus on cost control and increasing operational efficiency to positively impact the bottom line, while completing a targeted renovation to increase top-line performance.
Institutionally Owned and Managed
The Hotel is both institutionally owned and managed, while being offered unencumbered by a management agreement. This gives new ownership the freedom to choose third-party management or to self-operate, with meaningful opportunity to materially impact performance.
Premium Location
The Property is close to several corporate hubs, like ChildServe (0.9 miles), the John Deere Intelligent Solutions Group (3.7 miles), and Berkley Technology Services (5.8 miles). It is also nearby Drake University (4.9 miles), UnityPoint Health – Iowa Methodist Medical Center (7 miles), the Living History Farm (7.1 miles), and the Iowa Events Center (8.1 miles).
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.
Fee Simple Interest
The Property will be offered as fee simple.
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