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Aspen Select and Aspen Suites 2 Hospitality Properties Online Auction Sale Rochester, MN
Financing Available
Matterport 3D Tours
INVESTMENT HIGHLIGHTS
- Value-add opportunity to enhance two well-performing independent hotels with 134 total keys in the high-growth, high-demand Rochester, MN, market.
- Benefits from the upcoming $5B expansion and upgrade of The Mayo Clinic, which is poised to bring about 2,000 temporary workers to the area.
- Newly announced 160-acre Rochester Sports Complex just 10 minutes away, creating new weekend demand for accommodations that will be welcomed.
- Prime location directly across from The Mayo Clinic / St. Mary’s Hospital and along the new Link Transit system connecting both Mayo campuses.
- Retain the Aspen Suites, Aspen Select brands at no cost or explore new upper mid-scale soft-branding opportunities with Marriott, Hilton, and others.
- Upside opportunity to introduce parking fees, with just a $10+/day charge, could add $300K to the NOI, which is below comp set parking rates.
EXECUTIVE SUMMARY
The Aspen Suites - Aspen Select presents a rare opportunity for bidders to acquire and reposition two independent hotels offering 136 combined keys in the thriving Rochester, Minnesota, market, found at 1211 & 1215 2nd Street SW. The October STR reports show RevPAR increase of +8.8% in COMP set while the property is up +2.2% in the T-12. With RevPAR growth of +4.8% and minimal new supply entering the market, these properties are well-positioned for continued success.
Strategically located directly across from The Mayo Clinic / St. Mary’s Hospital and along the new Link Transit system connecting both Mayo campuses, the hotels benefit from strong, built-in demand. Additionally, with $5 billion being invested in Mayo Clinic expansions and infrastructure improvements, alongside the 160-acre Rochester Sports Complex just 10 minutes away, new demand for accommodations will be significant.
Both hotels have a proven track record of success as independent properties, yet they also present opportunities for franchising. Several brands may offer key money to support renovations, further enhancing the investment potential.
The Aspen Select offers the opportunity to be repositioned as an upscale boutique hotel, targeting or even exceeding the $147 RevPAR of Rochester’s Luxury and Upper Upscale segments. Soft-branding options with Hilton, Marriott, Hyatt, or IHG (Kimpton) could attract high-paying guests seeking exceptional service and hospitality.
Originally built as a Staybridge Suites, Aspen Suites offers an all-suites hotel that has performed well independently. However, a new owner could drive profitability and returns through multiple strategies, including branding, renovations, operational efficiencies, or workforce housing initiatives.
Strategically located directly across from The Mayo Clinic / St. Mary’s Hospital and along the new Link Transit system connecting both Mayo campuses, the hotels benefit from strong, built-in demand. Additionally, with $5 billion being invested in Mayo Clinic expansions and infrastructure improvements, alongside the 160-acre Rochester Sports Complex just 10 minutes away, new demand for accommodations will be significant.
Both hotels have a proven track record of success as independent properties, yet they also present opportunities for franchising. Several brands may offer key money to support renovations, further enhancing the investment potential.
The Aspen Select offers the opportunity to be repositioned as an upscale boutique hotel, targeting or even exceeding the $147 RevPAR of Rochester’s Luxury and Upper Upscale segments. Soft-branding options with Hilton, Marriott, Hyatt, or IHG (Kimpton) could attract high-paying guests seeking exceptional service and hospitality.
Originally built as a Staybridge Suites, Aspen Suites offers an all-suites hotel that has performed well independently. However, a new owner could drive profitability and returns through multiple strategies, including branding, renovations, operational efficiencies, or workforce housing initiatives.
MATTERPORT 3D TOURS
Aspen Suites - King
/4
OFFERING MEMORANDUM Click Here to Access
DATA ROOM Click Here to Access
- Offering Memorandum
- Financing Term Sheet
- Operating and Financials
- Financials-Forecast and IRR Model 2019-2025
- Purchase Agreement
- Title and Insurance
- Branding Options
PROPERTY FACTS
| Sale Condition | Auction Sale | Number of Properties | 2 |
| Type of Ownership | Fee Simple | Total Building Size | 126,800 SF |
| Sale Type | Investment | Total Land Area | 1.07 AC |
| Status | Active |
| Sale Condition | Auction Sale |
| Type of Ownership | Fee Simple |
| Sale Type | Investment |
| Status | Active |
| Number of Properties | 2 |
| Total Building Size | 126,800 SF |
| Total Land Area | 1.07 AC |
PROPERTIES
| PROPERTY NAME / ADDRESS | PROPERTY TYPE | SIZE | YEAR BUILT |
|---|---|---|---|
|
Aspen Suites
1211 2nd St SW, Rochester, MN 55902 |
Hospitality | 88,400 SF | 2002 |
|
Aspen Select
1215 2nd St SW, Rochester, MN 55902 |
Hospitality | 38,400 SF | 1965 |
SALE ADVISORS
SALE ADVISORS
Chris Kilcullen, Senior Hotel Broker
Christopher Kilcullen is an industry veteran with 30 years of experience in the hospitality business. Chris has spent time on both sides of the transaction, as SVP of Acquisitions for a REIT he completed over $160 million in transactions for its shareholders following a distinguished career as VP of Development for a major hospitality franchise company completing more than 250 transactions. Chris has built a trusted reputation by understanding the needs of his clients and looking for ways to move difficult transactions to a successful end for all parties involved.
When not working, Chris serves as Co-Founder of a non-profit food truck called Kitchen One for One, serving the homeless and impoverished in the Denver community. Mr Kilcullen is married to his amazing wife, Tyra of 25 years with two children and enjoy cooking with friends and all the joys of life in the Colorado Rockies.
When not working, Chris serves as Co-Founder of a non-profit food truck called Kitchen One for One, serving the homeless and impoverished in the Denver community. Mr Kilcullen is married to his amazing wife, Tyra of 25 years with two children and enjoy cooking with friends and all the joys of life in the Colorado Rockies.
Rick George, Senior Hospitality Broker
A 25 year veteran of the hospitality business, Rick has been involved in all facets of the transaction and development process including asset valuation, acquisition, disposition, land development, financing and branding. In July 2014, he opened the Chicago office for Keith Thompson and Hotel Assets Group where he has focused on single asset and portfolio transactions in the Midwest and US as a whole.
A graduate of Cornell University, Rick joined a national hotel brokerage firm in 2003 as a principal owner and partner in charge of its Chicago and Los Angeles offices. During his tenure, Rick helped build and train the human capital infrastructure of the firm, while focusing on transactions from the lower to the upper mid-market segments, as well as capital markets production and debt placement. In addition to revenue production, Rick was also responsible for the macro management of the firm’s brand, national client marketing efforts, technology, and personnel management in the field.
Earlier in Rick’s career he held senior positions at Intercontinental Hotels (IHG) as the Director of Franchise Sales and Development for the West North Central region of the U.S. and Wyndham Hotels, as the Regional Vice President of Franchise Sales and Development and as Managing Director for Hotel Partners.
A graduate of Cornell University, Rick joined a national hotel brokerage firm in 2003 as a principal owner and partner in charge of its Chicago and Los Angeles offices. During his tenure, Rick helped build and train the human capital infrastructure of the firm, while focusing on transactions from the lower to the upper mid-market segments, as well as capital markets production and debt placement. In addition to revenue production, Rick was also responsible for the macro management of the firm’s brand, national client marketing efforts, technology, and personnel management in the field.
Earlier in Rick’s career he held senior positions at Intercontinental Hotels (IHG) as the Director of Franchise Sales and Development for the West North Central region of the U.S. and Wyndham Hotels, as the Regional Vice President of Franchise Sales and Development and as Managing Director for Hotel Partners.
Mike George, Senior Hospitality Broker
Mike George is a Senior Broker & Partner, Avison Young Hospitality Division, with experience selling hotels across the continental US, Canada & Mexico. With know-how, tenacity and diligence, Mike provide his clients immense effort, valuable insight and advice that has proven to be effective in planning a path towards the successful acquisition and disposition of hospitality assets or their related debt, equity needs
With the rise of the pandemic that swept the world, Mike shifted to help place rescue capital and provide debt consulting services to protect his clients’ interests. Mike also assisted banks managing their risk by providing valuations on hotels, non-performing notes and facilitating the transfer of the note, or brick & mortar.
Born & raised near Syracuse, NY, Mike completed his undergraduate work after attending Alfred University, University of Hawaii and ultimately graduating with a degree in Economics from The University at Buffalo.
Mike was a partner with Hotel Assets Group, LLC before it was acquired by Avison Young in January of 2017 and has developed a specialty working on both public and private 'off-market' deals for sellers and turning stones to fine off-market opportunities for buyers that enlist his services.
With the rise of the pandemic that swept the world, Mike shifted to help place rescue capital and provide debt consulting services to protect his clients’ interests. Mike also assisted banks managing their risk by providing valuations on hotels, non-performing notes and facilitating the transfer of the note, or brick & mortar.
Born & raised near Syracuse, NY, Mike completed his undergraduate work after attending Alfred University, University of Hawaii and ultimately graduating with a degree in Economics from The University at Buffalo.
Mike was a partner with Hotel Assets Group, LLC before it was acquired by Avison Young in January of 2017 and has developed a specialty working on both public and private 'off-market' deals for sellers and turning stones to fine off-market opportunities for buyers that enlist his services.
Avery Sprout, Associate Hospitality Broker
Avery Sprout is an Associate Broker at Avison Young's Denver office, bringing an entrepreneurial drive and a passion for commercial real estate and investment. A recent graduate of Auburn University's Harbert College of Business with a B.S.B.A. and a minor in Entrepreneurship and Family Business, and is a licensed Colorado Real Estate Broker. She is eager to leverage her business acumen and foundational experience to contribute to Avison Young's success in the dynamic Denver West market, particularly looking forward to working within the hospitality group. Avery appreciates all the different aspects that the hospitality class provides and is eager to help buyers and sellers find unique opportunities that fit their investment criteria.
As a Colorado native, Avery enjoys the outdoors, hiking, cooking and all that Colorado has to offer. She is committed to building relationships and delivering value in the commercial real estate sector.
As a Colorado native, Avery enjoys the outdoors, hiking, cooking and all that Colorado has to offer. She is committed to building relationships and delivering value in the commercial real estate sector.
ABOUT THE AUCTION TECHNOLOGY
Auctions by Ten-X are the #1 transaction technology powering commercial real estate transactions online. With over $34B in total transactions, these auctions use best-in-class technology and real-time asset intelligence to put listings in the best position to find the perfect buyer. The expedited auction timeline, comprehensive due diligence, and buyer qualification make transactions twice as fast and twice as certain for brokers, owners, and investors.
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AUCTION CONTACT
Victoria Quade
Contact
Auctioneer License:
Ten-X Arlene Richardson RE Brkr 40750750
CONTACTS
-
Chris Kilcullen -
Rick George -
Mike George -
Avery Sprout -
Avison Young Hotel Group
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3% Transaction Fee
Based on Winning Bid Amount
Minimum Transaction Fee
$20,000
Maximum Transaction Fee
$300,000
Example Calculation
Winning Bid Amount
$5,000,000
Transaction Fee
$150,000 (3%)
Total Purchase Price
$5,150,000
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Aspen Select and Aspen Suites
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