Howard Johnson Burlington

$2,350,000

2759 Mount Pleasant St, Burlington, IA 52601

Details

  • $2,350,000
  • Limited Service

Investment Overview:

The Howard Johnson Burlington is an interior/exterior corridor midscale hotel with 96 rooms, located in Burlington, Iowa. This two-story hotel was built in 1965 and renovated in 2010. There are an additional 60 rooms out of service currently on a second exterior wing that could be repurposed or redeveloped by the new owner.  The property features a New Orleans style atrium with full Tiki Bar and patio-style dining area at the center of the hotel. The atrium area has a large, heated swimming pool and spa, along with arcade games, and billiard tables, making it unique for the area and the only hotel to feature such amenities.

There is also a separate ballroom and banquet facility that can be marketed for local events or functions in the community. The property has a large fitness center and gym area that is not in use with multiple machines and equipment. Additionally, there is a value-add potential with the additional 60 rooms out of the total 156, that are currently out of service.

Capital improvements (over $200,000 in the past 24 months) have been made as needed including a new roof (main building) in March of 2016, LED lighting throughout the hotel, New electrical wiring on the interior rooms and work that was completed on the side/facade of the property. Also, in June of 2015, there were 20 rooms added and brought back into service on the exterior portion to bring the count of rooms in service to 96. ($300,000 expense). The hotel has an absentee owner and the expenses are high, mainly on supplies and payroll. There is an opportunity for a more hands-on owner/operator or family to take advantage of this property/banquet hall and increase the NOI by reducing multiple expenses.

Property Overview:

The Howard Johnson Hotel in Burlington, Iowa is a 96-room, interior/exterior-corridor, limited-service hotel. The hotel boasts a large banquet space, a meeting room, fitness center, business center, an indoor pool, hot tub and children’s pool, as well as a game room area (no restaurant but Tiki bar is operational) The guest room amenities include flat-screen televisions, community-wide Wi-Fi, microwaves, refrigerators, workspaces, and balconies for the second-floor rooms.

Location Overview:

With a community of 25,663 citizens located on the Mississippi River in Southeast Iowa, Burlington is a regional center for employment, shopping, education, healthcare, and recreation. Located in Des Moines County it is home to several manufacturing and transportation companies along with serving as the headquarters for Great River Health Systems, a regional healthcare system that employees over 1900 employees and receives patients from several neighboring states as well.

The Howard Johnson Burlington is located next door to Catfish Bend Casino and directly on the main exit to the town of Burlington. Only four miles from the Burlington Regional Airport, that is home to Air Choice One, an airline that is subsidized and brings in travelers from other major Midwest cities, such as Chicago and St. Louis. The property is located near the Illinois border and serves as a convenient stop for leisure travelers commuting to and from the Midwest states, as well as many long-term stay guests.

 

Broker of Record:

Barry A’Hearn

License: B 55614000

Agent for this listing

Ebrahim Valliani

Associate, National Hospitality Group
Office: (630) 570-2177
Mobile: (773) 331-5340
Fax: (773) 867-1510 fax
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Michael Klar

Associate, National Hospitality Group
Office: (630) 570-2175
Mobile: (248) 914-2183
Fax: (773) 867-1510
Other listings

Contact Form
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