Investing in hotels in Davenport, Iowa can be a lucrative venture, especially considering the city's rich history, diverse industries, and strong educational institutions. Hotels in Davenport offer a unique opportunity to tap into the city's steady stream of visitors, from students and faculty at St. Ambrose University and Palmer College of Chiropractic to tourists drawn to the city's annual music festivals and events. As a hotel owner, you can capitalize on the city's amenities, including its parks, recreational paths, and historical landmarks. Davenport's location along the Mississippi River and its connection to three interstates and two major US highways makes it an attractive destination for travelers. With a population of around 101,724 people, Davenport offers a sizable market for hotel owners to tap into. The city's strong manufacturing sector, manufacturing companies like John Deere, and major employers like Genesis Health System and Hy-Vee, also contribute to a steady flow of business travelers.
Davenport's hotel market is characterized by 3 available listings, with an average price per square foot of $115 USD and an average size of 50,173 square feet. The largest hotel property available spans 62,204 square feet, offering ample opportunities for investors to find a property that fits their needs. In addition to hotels, Davenport also offers a range of other investment opportunities, including restaurants, apartment buildings, and shopping centers. Restaurants in Davenport can capitalize on the city's strong manufacturing sector and tourist attractions, while apartment buildings can tap into the demand for housing from students and young professionals. Shopping centers, meanwhile, can benefit from the city's strong retail sector, anchored by major employers like Hy-Vee. With its diverse economy and range of investment opportunities, Davenport is an attractive destination for investors looking to diversify their portfolios.
! What factors should I consider when buying a hotel in Davenport?
When considering buying a hotel in Davenport, Iowa, there are several key factors to take into account, including:
- The current state of the local economy, with a strong manufacturing sector and major employers like John Deere, Genesis Health System, and Hy-Vee, which can impact demand for hotel rooms.
- The city's infrastructure, including its three interstate highways, two major US highways, and public transportation services, which can affect accessibility and convenience for guests.
- The availability and pricing of hotels in the area, with 3 listings currently available, and an average price per square foot of $115 USD, average size of 50,173 square feet, and largest size of 62,204 square feet, as well as an average cap rate of.
It's also important to research the local amenities and attractions, such as the Figge Art Museum, River Music Experience, and Modern Woodmen Park, which can draw in tourists and business travelers. Additionally, understanding the city's climate, with its seasonal flooding and humid continental climate, can help inform decisions about hotel maintenance and operations. For more information on financing options for hotel purchases, consider exploring commercial real estate loans.
How is the value of a hotel for sale typically calculated?
In Davenport, Iowa, where there are currently 3 hotel listings available, the value of a hotel for sale is typically calculated through a comprehensive CRE appraisal, which takes into account various factors such as the property's income-generating potential, local market conditions, and the overall condition of the property. To learn more about the CRE appraisal process and how it affects the value of a hotel, check out our article at CRE appraisals, which provides valuable insights into this crucial step in the hotel valuation process.
