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The Dakota 3200 W Russell St 102 Room Hotel Sioux Falls, SD 57107 $7,603,750 CAD ($74,547 CAD/Room) 4.98% Cap Rate
EXECUTIVE SUMMARY
PRICE IMPROVEMENT
The Dakota is currently operated as an extended-stay hotel catering to long-term guests. Featuring 98 rooms (+ a manager’s apartment), a well-appointed water park, and an excellent location. The Dakota appeals to both transient/leisure and corporate travelers. A buyer could choose to operate it as an independent property or leverage one of the newer mid-scale brands from Hilton, IHG, and many others. Spark by Hilton has expressed interest, offering a potential opportunity to reposition the hotel under the sought after Hilton family of brands.
With a history of generating $1.9 million in revenue under a previous owner, the opportunity to purchase and renovate the hotel at a value well below replacement cost presents a compelling investment strategy. This is further supported by the market’s Mid-scale REVPAR of $52. In the greater Sioux Falls market, REVPAR has increased by 3.1%, reaching $78, providing additional potential for outperformance with a strong product and successful management team.
The Dakota is currently operated as an extended-stay hotel catering to long-term guests. Featuring 98 rooms (+ a manager’s apartment), a well-appointed water park, and an excellent location. The Dakota appeals to both transient/leisure and corporate travelers. A buyer could choose to operate it as an independent property or leverage one of the newer mid-scale brands from Hilton, IHG, and many others. Spark by Hilton has expressed interest, offering a potential opportunity to reposition the hotel under the sought after Hilton family of brands.
With a history of generating $1.9 million in revenue under a previous owner, the opportunity to purchase and renovate the hotel at a value well below replacement cost presents a compelling investment strategy. This is further supported by the market’s Mid-scale REVPAR of $52. In the greater Sioux Falls market, REVPAR has increased by 3.1%, reaching $78, providing additional potential for outperformance with a strong product and successful management team.
DATA ROOM Click Here to Access
- Offering Memorandum
PROPERTY FACTS
| Price | $7,603,750 CAD | Lot Size | 3.99 AC |
| Price Per Room | $74,547 CAD | Building Size | 48,846 SF |
| Sale Type | Investment | No. Rooms | 102 |
| Cap Rate | 4.98% | No. Stories | 2 |
| Property Type | Hospitality | Year Built | 1975 |
| Property Subtype | Hotel | Parking Ratio | 3.87/1,000 SF |
| Building Class | C | Corridor | Interior |
| Zoning | C-2 - Commercial | ||
| Price | $7,603,750 CAD |
| Price Per Room | $74,547 CAD |
| Sale Type | Investment |
| Cap Rate | 4.98% |
| Property Type | Hospitality |
| Property Subtype | Hotel |
| Building Class | C |
| Lot Size | 3.99 AC |
| Building Size | 48,846 SF |
| No. Rooms | 102 |
| No. Stories | 2 |
| Year Built | 1975 |
| Parking Ratio | 3.87/1,000 SF |
| Corridor | Interior |
| Zoning | C-2 - Commercial |
AMENITIES
- Business Center
- Fitness Center
- Pool
- Restaurant
- Meeting Event Space
ROOM MIX INFORMATION
| DESCRIPTION | NO. ROOMS | DAILY RATE | SF |
|---|---|---|---|
| Guest Room | 102 | $136.87 CAD | - |
1 1
PROPERTY TAXES
| Parcel Number | 38305 | Improvements Assessment | $4,464,906 CAD |
| Land Assessment | $703,146 CAD | Total Assessment | $5,168,052 CAD |
PROPERTY TAXES
Parcel Number
38305
Land Assessment
$703,146 CAD
Improvements Assessment
$4,464,906 CAD
Total Assessment
$5,168,052 CAD
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The Dakota | 3200 W Russell St
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