Conversion Opportunity

The Dakota

Sioux Falls, SD

Due Diligence Access

Property Highlights

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.

Investment Highlights

98 Guestrooms, + Manager’s Apartment

Growing Population in an Expanding Market

Hilton, IHG, and other Brand Conversion Opportunity
Discount to Replacement Cost

Two-story, Interior Corridor

The Brokerage Team

Christopher Kilcullen

Christopher Kilcullen

Senior Hospitality Broker
Avison Young
+1 303 250 8338
Dale Zomer

Dale Zomer

Senior Vice President
NAI Sioux Falls
16458
(605) 351-1218
Jeremy Cabe

Jeremy Cabe

Associate Broker / Marketing
Avison Young - US - GA - Atlanta
478-394-2990