As the exclusive representative of the seller, Marcus & Millichap is pleased to present for sale to qualified investors the La Quinta Inn & Suites by Wyndham Madison American Center ("Hotel" or "Property") located at 5217 E Terrace Drive in Madison, Wisconsin. The upper-midscale Wyndham Hotels & Resorts-branded Hotel is offered at $7,900,000 or $65,833 per key.
Situated on approximately 3.0 acres, the Property features 120 guest rooms across four stories and offers a comprehensive amenity package designed to accommodate both business and leisure travelers. Originally constructed in 1997 and updated in 2008, the Hotel includes a business center, indoor swimming pool and hot tub, fitness center, on-site bar, 131 parking spaces, approximately 1,535 square feet of meeting and event space, and has recently undergone additional improvements including the replacement of all guest room sofas and all hotel door locks.
Conveniently located within the American Center Business Park, one of Madison’s premier corporate and commercial districts, the Property provides exceptional accessibility via Interstates 90 and 94, U.S. Highway 51, and Dane County Regional Airport. Its position near American Family Insurance, one of Wisconsin's largest corporate employers, serves as a significant source of year-round business travel, while the surrounding Madison industrial and business parks support additional lodging demand from technology, manufacturing, distribution, warehouse, and professional service companies throughout the Interstate 90/94 corridor. Healthcare related visitation is generated by UW Health East Madison Hospital and UW Health University Hospital, which attract patients, visiting families, physicians, medical vendors, and healthcare professionals from across the region. Exact Sciences, a nationally recognized biotechnology and cancer diagnostics company located a short drive from the Hotel, contributes additional business-related demand. The Property also benefits from its proximity to the University of Wisconsin–Madison, one of the nation's leading public research universities, generates substantial lodging demand through academic programs, research partnerships, conferences, athletic events, commencements, alumni activities, and campus visitation. Educational demand is further strengthened by Madison College (Truax Campus), which supports workforce training, athletic events, and academic programming. Additional group and event demand is generated by the Alliant Energy Center, one of Wisconsin's premier venues for conventions, exhibitions, trade shows, sporting events, and entertainment programming.
As Wisconsin's capital city, Madison benefits from recurring lodging demand generated by the Wisconsin State Capitol, state agencies, legislative activity, association meetings, and government-related business travel. Madison is the second largest city in Wisconsin and continues to rank among the Midwest's strongest economies, benefiting from a highly educated workforce, strong population growth, and substantial institutional investment. Madison’s reputation as a center for innovation, economic diversity, research, and quality of life continues to provide long-term economic stability and support consistent lodging demand across multiple sectors. With its strategic brand affiliation, ideal location within the American Center Business Park, and proximity to Madison's primary demand generators, the La Quinta Inn & Suites by Wyndham Madison American Center offers investors the opportunity to acquire a well-positioned hospitality asset within one of the region's most resilient lodging markets.
INVESTMENT HIGHLIGHTS
- Wyndham Brand Affiliation: A 120-Room, Upper-Midscale La Quinta Inn & Suites Operating Under One of Hospitality's Most Recognized Lodging Brands.
- Premier American Center Business Park Location: Strategically Positioned Within Madison's Leading Corporate and Commercial District.
- Major Corporate Demand Generator: Near American Family Insurance Headquarters and Numerous Corporate Employers Throughout East Madison.
- Robust Healthcare Demand Base: Benefits from Proximity to UW Health East Madison Hospital and UW Health University Hospital.
- Airport-Oriented Lodging Demand: Located Approximately Eight Miles from Dane County Regional Airport.
- University of Wisconsin–Madison Exposure: Supported by One of the Nation's Leading Research Universities and Its Extensive Academic, Athletic, and Visitor Demand.
- Wisconsin State Capitol Market: Benefits from Consistent Government, Legislative, Association, and Public-Sector Travel Demand.
- Convention and Event Demand Generator: Near Alliant Energy Center, Hosting Trade Shows, Conferences, Sporting Events, and Entertainment Programming.
- Growing Biotech and Innovation Economy: Supported by Exact Sciences and Madison's Expanding Technology and Life Sciences Sectors.
FINANCIAL HIGHLIGHTS
- Climbing Submarket RevPAR: As of July, the 12-month average RevPAR in the Madison I- 90/East Submarket increased by over 3.07 percent, indicating robust growth and a lower-risk environment, boosting investor confidence in the asset and thriving market.
- Room Revenue Upside Potential: With a RevPAR Index of 83 percent, the hotel presents untapped potential. Leveraging strategic revenue management and targeted marketing initiatives could increase room revenue to $2.3–$2.7 million, unlocking significant upside and delivering stronger returns for investors.
- Fee Simple Acquisition: The hotel provides full ownership and operational control, enabling independent financing and management. This structure typically supports long-term property appreciation, making it a compelling investment opportunity.
BROKER OF RECORD:
TODD LINDBLOM
Wisconsin
(262) 364-1964
License: WI 56163-90
