Overview
The Springfield, IL 2-Hotel Portfolio is an attractive opportunity for an investor to purchase two high-performing assets in the capital city of Illinois. The Hotels benefit from Springfield’s stable economy and are located near significant demand generators such as the 500-bed Springfield Memorial Hospital, the 442-bed HSHS St. John’s Hospital, the 746-acre University of Illinois Springfield campus, as well as several State of Illinois agency offices.
The Hotels’ rapidly growing combined rooms revenue have increased by 65% in the span of three years. To further add to this, the submarket as a whole has experienced a continuous increase in revenues with a 9.5% YoY increase in YE 2023 and a 5.3% YoY increase in March 2024 trailing 12 (according to Costar). A new owner can further capitalize on these increasing revenues by revamping operations and implementing cost-control initiatives.
Moreover, the area’s diverse attractions including the Illinois State Fair, White Oaks Mall, Bank of Springfield Center, and more contribute to the local tourism appeal. The region’s rich transport infrastructure, including highways, Abraham Lincoln Capital Airport, and the upcoming Springfield-Sangamon Transportation Center, enhances accessibility and positions the Hotels as a viable long-term investment.
Investment Highlights
Significant Government Demand
The Hotels are located within five miles of the following government entities: Illinois State Capitol, Illinois Emergency Management, Illinois Department of Corrections, and Illinois Department of Healthcare & Family Services.
Large Meeting Space Facilities
The Crowne Plaza has 54,200 SF of meeting space and over 30 flexible meeting rooms.
Synergistic Operational Benefits
The Crowne Plaza is directly adjacent to the Holiday Inn Express & Suites. The purchase of both Properties allows for shared expenses and economies of scale for further cost control. This is also an opportunity to spread the cost of one GM over the two Hotels, creating operating efficiencies and improved margins.
Surrounded by Diverse and Stable Demand Generators
The Hotels are less than six miles from major demand generators such as Springfield Memorial Hospital, HSHS St. John’s Hospital, University of Illinois Springfield, and several State of Illinois agency offices; All of which provide essential services and position the Properties for economic resiliency.
Strong In-Place Revenues with a Continued Upward Trajectory
Combined room revenues have increased from $5,817,765 in 2021, $8,173,991 in 2022, and $9,585,478 in 2023.
Large Acreage
The Hotels combine for a lot size of nearly 16 acres. An investor can seek to take advantage of a partial redevelopment of the site.
Diversified Scales and Services
Each Property provides a different service structure and chain scale, accommodating a wider range of traveler needs to further capture demand.
Fee Simple Interest
Offered Unencumbered by Management
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