The Dakota

The Dakota is a 98-room extended-stay hotel (+ manager’s apartment) featuring a well-appointed water park and a prime location appealing to both leisure and corporate travelers. The property offers flexible ownership opportunities, including seller financing, joint venture, or possible lease purchase with a qualified buyer. Investors can operate it as an independent hotel or explore conversion to a mid-scale brand such as Spark by Hilton, IHG, or others, with Hilton expressing interest in a potential brand repositioning.

Historically generating $1.9 million in revenue under previous ownership, the hotel presents a compelling value-add opportunity well below replacement cost. The greater Sioux Falls market shows a Mid-scale REVPAR of $52, with overall REVPAR increasing 3.1% to $78, highlighting upside potential with strong management and repositioning.