Overview
The Portfolio presents a compelling opportunity for acquisition, positioned strategically near a range of diverse demand generators. Bemidji is home to a major university, a regional healthcare hub, and endless opportunities for leisure travelers. The Portfolio is situated along the southern banks of Lake Bemidji, providing convenient access to the region’s biggest attraction.
The Hotels are the only two Hilton products in the Bemidji area, a major competitive advantage. As there are no Marriott properties in Bemidji, there is the potential to convert the Hampton Inn, which is nearing the end of its original license, to a Marriott-branded select-service asset. Additionally, a new Owner could consider converting the recently renovated DoubleTree to a soft-branded hotel. An investor can also capitalize on opportunities to revamp operations and implement cost control initiatives.
Bemidji, a popular resort destination in Minnesota, is home to a population of around 15,000 within the city and 30,000 in its immediate vicinity. Renowned for its stunning natural scenery and pristine lakes, Bemidji attracts outdoor enthusiasts year-round with activities like fishing and snowmobiling, and Bemidji is also a major hub for youth
and college hockey. The city's rich heritage, blending lumberjack history with Native American and Scandinavian influences, is celebrated through cultural events and artistic experiences, making it a vibrant and diverse community.
Investment Highlights
In-Place Cash Flows with Significant Upside Potential
In 2023, the Hampton Inn & Suites and DoubleTree Bemidji achieved 20%+ NOI flowthrough percentages. By executing a Property Improvement Plan and enhancing operational efficiency, the next owner can further boost revenue capture. Implementing cost-saving strategies offers a unique chance to increase NOI flowthrough at both Hotels.
Limited License Term at Hampton Inn
As the original license term for the Hampton Inn approaches its end, a new Owner might contemplate transitioning the Hotel into a Marriott-branded property. This move would secure the exclusive presence of both Marriott and Hilton products in the Bemidji market.
Recent Renovation at DoubleTree
The DoubleTree recently finished a major renovation, which solidified the Hotel’s place as the premier full-service asset in Bemidji and the surrounding area. A new Owner may consider up-branding the Hotel to a soft brand to further reflect the character of the Hotel and its surrounding area.
Additional Income from Green Mill Restaurant
Additionally, there is the opportunity for an investor to continue to operate the Green Mill Restaurant, which generates consistent revenues over $3.4 million, or lease out the space and generate lease rental income.
Excellent Location in Resort Market
Bemidji, in northern Minnesota, offers diverse outdoor activities, cultural attractions, and annual festivals, drawing visitors to its scenic lakeside setting. The Portfolio includes beachfront property along Lake Bemidji, which is uncommon for most hotels in the area.
Diverse Demand Generators in Bemidji
The Sanford Center, a 4,700 seat multi-purpose arena and convention center, which draws college and youth sport tournaments, is situated less than a mile east of the properties. Conveniently located off Highway 197, the portfolio provides easy access to Bemidji State University, with 5,400 students, just 1.5 miles north, and Sanford Health’s main campus, the region’s largest healthcare provider, only 4.3 miles north.
Economies of Scale to be Realized with Portfolio Acquisition
With adjacent locations, the Properties can streamline operations, sharing services like accounting, sales, marketing, and a general manager to reduce expenses, and this will enable a new management team to maintain and potentially enhance cost-saving measures.
Hilton Brand Family Affiliations
The Hampton Inn & Suites Bemidji and DoubleTree Bemidji are affiliated with Hilton Worldwide, one of the largest and most respected hotel companies in the world. The Properties benefits from the Hilton Honors program, which drives additional room nights to the Hotels.
Unencumbered by Management
Fee Simple Interest
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