Best Western Plus Bloomington East Hotel 604 1/2 Iaa Dr 95 Room Hotel Bloomington, IL 61701 $9,676,813 CAD ($101,861 CAD/Room) 7.56% Cap Rate

As the exclusive representative of the seller, Marcus & Millichap's Hospitality Division is pleased to present for sale to qualified investors the Best Western Plus Bloomington East Hotel (‘Hotel’ or ‘Property’) located in Bloomington, Illinois. The Best Western-affiliated Hotel is offered at $6,995,000 or $73,632 per key.
The Best Western Plus Bloomington East Hotel is a three-story hotel with 95 rooms, located at 604 ½ IAA Drive in Bloomington, Illinois. The property underwent a full renovation in 2018 and maintains various common area amenities include a sundry shop, seasonal outdoor pool, fitness center, state of the art meeting rooms, breakfast area, and business center.
With a RevPAR Index of 70 percent, the hotel presents untapped potential. Strategic revenue management and marketing could lift performance, increasing room revenue to $1.8-$2.0 million dollars and driving stronger returns for investors. Between year-end 2023 and 2024, the hotel saw a notable increase of over 1.3 percent in net operating income. This trend presents several advantages for potential buyers, including additional capital for renovations and enhanced cash flow.
Bloomington, Illinois, offers a compelling investment opportunity for hotel developers and operators seeking a stable, growth-oriented market in the Midwest. The Bloomington-Normal Metropolitan Statistical Area (MSA), encompassing McLean and DeWitt counties, has a population of approximately 172,000 residents as of 2024, positioning it as a key regional hub in Central Illinois. The area benefits from proximity to major corporate and economic drivers, including State Farm® Insurance Corporate Headquarters, COUNTRY Financial®, Rivian Automotive, and Bridgestone, as well as Central Illinois Regional Airport (BMI), which enhances regional and national connectivity. These employers collectively provide a consistent base of business travelers, while ongoing expansions—such as Rivian’s growing EV manufacturing operations—further strengthen long-term corporate demand.
The region’s educational institutions, including Illinois State University, Illinois Wesleyan University, and Heartland Community College, attract students, faculty, and visitors year-round, generating steady demand for short-term accommodations. Bloomington-Normal also supports robust healthcare services with OSF St. Joseph Medical Center and Carle BroMenn Medical Center, which draw patients and families for specialized medical care, adding another reliable source of hotel demand.
Tourism and leisure activity are strong drivers in the market, with attractions such as the David Davis Mansion, McLean County Museum of History, Miller Park Zoo, and the Children’s Discovery Museum, as well as event venues including Grossinger Motors Arena, which hosts concerts, sporting events, and conventions. These amenities, combined with seasonal festivals and regional events, create diversified demand across leisure, family, and group travel segments.
Additionally, the Bloomington-Normal area supports corporate and conference travel through extensive meeting and event facilities, including the Bloomington-Normal Marriott Hotel & Conference Center, which features more than 24,000 square feet of flexible meeting space. Economic development initiatives by the City of Bloomington and the Bloomington-Normal Economic Development Council focus on attracting new businesses, supporting existing employers, and fostering a favorable investment environment through strategic planning and incentive programs.