90 Twixt Town Rd NE
Cedar Rapids, IA 52402
Best Western Plus Hotel & Convention Center · Hospitality Property For Sale · 106 Rooms

DO NOT CONTACT EMPLOYEES OR VISIT PROPERTY WITHOUT PRIOR AUTHORIZATION The Best Western PLUS Longbranch Hotel & Conference Center is an immaculately maintained 106 room, four-story, interior corridor, full-service property built in 1978. Ranked as the number 3 hotel out of 37 in Cedar Rapids per TripAdvisor with 4.5 stars, this hotel is a favorite among business/corporate, destination, transient, and local guests. Fully equipped with an on-site conference center, meeting rooms, business rooms, fitness facility, indoor pool, bar & restaurant, as well as a plethora of room options to choose from including single kings, double queens, and suites - this hotel is perfect for any guest and any stay. Strategically located in close proximity to Interstate 380, Highways 100, 151, 13, 30, and 1, this property provides guests with convenient access to destination spots within and without the city borders including the Eastern Iowa Airport which services 1,140,000 passengers per year in this city with a population of over 130,000. Other popular destinations include the Brucemore Estate, National Czech & Slovak Museum & Library, Paramount Theater, Cedar Rapids Museum of Art, NewBo City Market, and many more. Shopping Malls, movie theaters, and restaurants also surround the hotel providing additional entertainment for guests of the Best Western PLUS Longbranch Hotel & Conference Center. Rockwell Collins International (NYSE: COL) sits a quarter of a mile from the Best Western Hotel & Convention Center. Employing more than 9,000 people, this commercial and military aviation company is a major demand generator for hotel rooms in Rapid City. Currently utilizing more than 20,890 hotel room nights in 2017, the Best Western Plus was only able to capture 275 room nights, less than one percent. With an outside sales staff and increasing marketing of the property, Rockwell Collins International alone could significantly increase room revenue annually. A large upcoming project for Cedar Rapids is the "Prospect Meadows Ball Fields" development. With plans to develop a 17-field baseball and softball complex at a cost of over $13.7 million, this project is projected to increase occupied hotel room nights by over 80,000 per year and increasing direct spending by $25 million through 200+ part and full time jobs. Groundbreaking is set to begin now in the Spring of 2018 with estimated completion in 2023. Located less than 5 miles from the Best Western Plus, this project will provide further revenue growth. With room for improvement in operating efficiencies as well as revenue management, this investment provides a 37% 5 year levered internal rate of return. Currently underperforming in RevPAR by 11% against its competitive set, there is also significant opportunity to increase revenue. Per the 2018 HOST Almanac Report, full-service hotel properties in the West North Central region perform with an EBITDA of 26.1% of sales. Pro-Forma cap rate at normalized expenses for this property shows a year one cap rate of nearly 12%. Broker of Record: Kevin Crowley, SIOR NAI Iowa Realty Commercial IA: #B17147000