Overview
HREC Investment Advisors has been exclusively retained to solicit offers to purchase the fee simple interest in the Econo Lodge Valley City (“Property”), a limited/full-service, 87-room hotel located in Valley City, North Dakota.
The Hotel benefits from long term ownership as it has been well maintained with recent renovations including new beds, new hallway and guestroom carpet and paint, common area flooring, PTACs, new steel roof and exterior siding, new proximity locks, new front electric entrance door, new LED interior lighting, and window treatments. A minimal change of ownership PIP is anticipated providing an excellent opportunity for an owner-operator or regional operator to recognize the property’s upside potential.
The Hotel is conveniently located on Interstate 94, the primary traffic route from Chicago to Seattle, offering high traffic visibility and proximity to several nearby retail, dining and fueling options. There is also an onsite bar and restaurant which provides an excellent amenity for guests and brings additional traffic to the Hotel. The current owner is willing to sell or lease back the bar/restaurant.
The Econo Lodge in Valley City represents the opportunity to acquire a well-maintained property with long-term ownership, ramping revenue performance, a living quarters onsite and significant upside potential.
Investment Highlights
- On-Site Bar/Restaurant Now Leased to Operator: The on-site bar and restaurant have been leased to an operator as of August 2024, providing the incoming ownership group with a stable income stream. This arrangement allows the new owners to concentrate on hotel operations, enhancing operational efficiencies and potentially boosting overall cash flow.
- Ramping or Increasing Property Performance: The Hotel has ramping property performance YoY and has increased room revenue more than 75% since 2019. An incoming owner can recognize additional upside potential by capitalizing on the property’s 56% RevPAR index against its competitive set.
- Long Term Ownership: Econo Lodge Valley City is owned by the original ownership group and is an excellent opportunity for a dedicated owner/operator to reduce expenses and recognize the Hotel’s upside potential.
- Well-Maintained Property: The Hotel has been meticulously maintained, with a minimal change of ownership PIP anticipated. Since affiliating with Choice in 2017, the owner has completed a comprehensive PIP renovation, exceeding Econo Lodge brand standards. This includes updates such as new beds, hallway and guestroom carpeting and paint, common area flooring, PTACs, a new steel roof, and exterior siding.
- Excellent Visibility from Interstate 94: The Hotel is located along Interstate 94, the primary traffic route from Chicago to Seattle, offering high traffic visibility and proximity to several nearby retail, dining and fueling options.
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