Howard Johnson Rockford

$1,500,000

3909 11th St, Rockford, IL 61109

Details

  • $1,500,000
  • Economy

Investment Overview:

The Howard Johnson Hotel in Rockford, Illinois is a great opportunity to purchase a hotel site with multiple value-add opportunities. The main hotel is a 102-room, two-story, interior corridor hotel seated on a large parcel of land over 5.5 acres. There are additional revenue opportunities available with this hotel, which include park and fly packages for guests that are flying out of Rockford International Airport, located less than a mile from the subject property. Since the airport charges for parking beginning in 2018, the available land at the hotel could also possibly be used for automated parking as well. In a separate building the property also features a renovated banquet hall. The restaurant is currently closed but a separate bar area is being redone. The hotel was recently approved for a liquor and gaming license and will have a bar area with game machines for enjoyment of the guests. The pool at the hotel is one of the largest in the area and is often used for birthday parties and other groups/organizations that want to rent it as a private space. Finally. there are an additional 56 rooms at the far end of the parcel that can be converted to apartments or an extended stay hotel. Bathrooms have been reworked and some furniture, fixtures and equipment is already available for those rooms.

A more hands-on owner operator can take advantage of the recent back of the house upgrades with over $550,000 spent on mechanicals, roofing, HVAC, and other room upgrades in the past five years. The newly approved liquor and gaming license could provide an additional stream of income and bring in business from the local trucking and logistics companies who have offices and warehouses right behind the property.

Property Overview:

The Howard Johnson in Rockford, Illinois is a 102-unit, mid-scale hotel that is closest branded property to the Rockford International Airport, home to one of the largest UPS hubs in the country. In a separate area towards the back of the parcel, there are an additional 56 rooms that can be renovated and used for a value-add apartment development opportunity or long-term stays with groups and companies. Due to the airport starting to charge for parking as of January of 2018, the hotel is able to capture “park and fly” rates that have generated more revenue to the top line.

Earlier this year, the hotel was granted a liquor/gaming license by the City of Rockford, which prompted the renovation of the bar area, now known as the “Silver Clipper.” Once completed, the gaming area and bar (separate building) will be available for patrons to eat, drink and play at their leisure and bring more business to the hotel complex in general.

There is a large pool and garden oasis area at the hotel that is available for guest use and brings in transient and family business that can take advantage of one of the largest pool facilities in the entire city. Truck parking is easily accessible and ample on the large parcel, which in turn could attract tour groups and teams that would come into the area for ball games, tournaments, and other festivities.

Location Overview:

Rockford is home to a large group of hospital systems, including Mercy Health which broke ground on a new hospital that will be open in 2019. The $485 million project is the largest in Rockford history. The Colman Village site, that will become a $65 million multi-use complex is also in works, as well as Swedish American that recently announced a $130 million expansion.

The hotel is situated less than one mile from the Chicago Rockford International Airport, which is home to the one of the largest UPS (United Parcel Service) Hubs in the world. The 586,000 square foot warehouse handles over 120,000 packages every hour. Rockford is also the third largest city in the state of Illinois.

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

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