Marcus & Millichap recently facilitated the sale of two branded select-service hotels in Minnesota and Texas.
The assets involved in the transaction were a 96-room Country Inn & Suites in Fergus Falls, Minn., and the 50-room Super 8 in Stanton, Texas. The Country Inn & Suites was built in 1971 and extensively renovated in 2018 following its conversion to the Country Inn & Suites brand. The two-story hotel is directly connected to the city-owned Bigwood Event Center, the area’s largest convention and meeting facility. The hotel features a Minnesota-shaped indoor pool, along with amenities including a dining area, fitness center and business center.
“Fergus Falls continues to demonstrate strong lodging fundamentals driven by regional tourism, healthcare demand and consistent Interstate 94 traffic,” Jon Ruzicka, managing director investments, Marcus & Millichap, said in a statement. “The new ownership group plans to implement thoughtful, tasteful renovations that will further enhance the guest experience while building on the hotel’s strong community presence.”
Ruzicka, Joseph Ferguson and Reed Gizinski, investment specialists in Marcus & Millichap’s Minneapolis office, had the exclusive listing to market the property on behalf of the seller. Ruzicka procured the buyer for the deal.
The Super 8 by Wyndham, meanwhile, was sold by Dallas-based LIG Hotels to a private partnership based in Houston. Built in 2015, the three-story, interior-corridor, 50-room property features modern amenities including a fitness center, business center and breakfast area. The buyer plans to reposition the property as a Best Western hotel, investing in brand conversion and operational enhancements as part of an effort to capture increased corporate and energy-sector demand, according to the Calabasas, Calif.-based brokerage firm.
“The transaction generated significant investor interest, resulting in more than 10 written offers as demand for West Texas hospitality assets continues to strengthen,” noted Alexander Curry, associate investments.
Curry and Chris Gomes, investment specialists in Marcus & Millichap’s Austin and Dallas offices, exclusively marketed the property on behalf of the seller. Rajan Patel from the firm’s Houston office, procured the buyer. The transaction received additional support from Allan Miller and Skyler Cooper of the Miller-Gomes Hotel team.