Highlights
•98 guestrooms + manager’s apartment •Price per key: $56,122 •Revenue T12 June 2024: $1,377,953 •Occupancy T12 June 2024: 70% •ADR T12 June 2024: $53.92 •NOI T12 June 2024: $274,033 (Net operating percentage: 19.9%) •Two-story, interior corridor layout •Conversion opportunity with Hilton, IHG, or other mid-scale brands •Discount to replacement cost •Positioned in a growing market with expanding population
Description
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.
Listing Details
- Space Type
hospitality
- Sub Category
hotel
- Date Listed
3/26/2026
- Ownership Info
Fee Simple
- Investment Type
Value Add
- Net Operating Income
$222,057
- Parking Info
184 spaces
Property Specifics
- Property Name
The Dakota
- No of Buildings
1
- No of Stories
2
- Year Built
1975
- Building Size
54,722 SF
- Lot Size
4 Ac
- Zoning
C-4 Commercial-Regional