The 142-room Holiday Inn Express Hotel & Janesville Conference Center in Janesville, Wisconsin, located 40 miles from Madison and 75 miles from Milwaukee, benefited from its central location but required extensive renovations. Through an aggressive marketing process targeting buyers experienced with large conference centers, the property sold at a lower 10.4% capitalization rate and 3.0 room revenue multiplier after a planned $3 million renovation compared to 14.7% and 2.15 pre-renovation. The new owner intends to upgrade the property while maintaining the Holiday Inn Express franchise.

1. Market: Janesville, Wisconsin
The five-story, 142 guestroom Holiday Inn
Express Hotel & Janesville Conference Center -
Janesville, WI benefits from its central location 40
miles from Madison, 75 miles from Milwaukee
and 100 miles from Chicago. Built in 1994, the
hotel has a two-story lobby, indoor swimming
pool, whirlpool and breakfast room. In addition
to the standard Holiday Inn Express amenities,
the hotel was sold with the connected 10,000
sq.ft. Janesville Conference Center
Challenge
Based on the need for extensive capital improvements with a large Product Improvement Plan (PIP)
from IHG, finding a buyer who could undertake the significant financial demand was challenging.
Hotel Sales/Marketing Process
Through an aggressive national sales and marketing process, prospective buyers who had experience
operating and acquiring hotels with large conference centers were targeted, as well as those with the
ability to tackle a large renovation.
Results
The property sold at a 10.4% Capitalization Rate and a 3.0 Room Revenue Multiplier after an estimated
$3,000,000+ renovation. Pre-renovation, the property sold at a 14.7%. Capitalization Rate and a 2.15
Room Revenue Multiplier. The new owner plans to maintain the Holiday Inn Express franchise and
extensively upgrade the property.
Year 1 Year 2 Year 3
A.D.R. $94.25 $92.63 $90.61
Occupancy 69.8% 61.9% 57.0%
RevPar $65.78 $57.34 $51.64
Room
Revenue
$3,417,971 $2,972,685 $2,675,500
Total
Revenue
$4,018,503 $3,621,288 $3,268,503
NOI $1,084,045 $841,538 $823,778
*NOI expressed after deductions for FF&E Reserve and Management Fees.