110 Sodrac Dr
North Sioux City, SD 57049

This Northwest Iowa/South Dakota/Nebraska border hotel presents an attractive hospitality investment opportunity in a strategic location along the I-29 corridor between Sioux Falls, South Dakota and Omaha, Nebraska. The well-maintained 30-guestroom property offers an appealing combination of recent capital improvements, operational flexibility, and strong owner-operator potential.

The property was originally operated as a Red Carpet Inn and had been severely mismanaged and under-maintained prior to the current ownership. The property was acquired by the current ownership in 2021 with a focus on improving the physical condition, guest experience, and overall operation of the hotel.

In 2023, the hotel underwent a substantial renovation, including new casegoods, platform beds, mattresses, carpeting, bathroom floor tile, new RFID locks, and other interior improvements. Major equipment has also been updated, including a newer ice machine, washer, and dryer, helping reduce near-term capital expenditure needs for a new owner.

Following the renovation, the property was converted to a Rodeway Inn in 2023 and subsequently converted to Motel 6 in June 2024. The property's history of successful rebranding and renovation demonstrates its flexibility and potential for a future owner to select an operating model that best fits their investment strategy.

Guest amenities include refrigerators and microwaves in the rooms, free Wi-Fi, an indoor swimming pool, guest laundry facilities, and interior corridors. The property also features an onsite three-bedroom, two-bath apartment, providing an excellent opportunity for an owner-operator or live-in manager while potentially reducing staffing and housing costs.

The property offers additional flexibility for a future owner. Several major hotel companies, including Choice Hotels, Wyndham, SureStay Hotels, and Red Roof, have expressed interest in franchising the property with limited PIP requirements. Alternatively, the property's size, existing improvements, and operating profile make it well-suited for an independent hotel operation, allowing an owner to maintain greater control over rates, operations, and expenses without the ongoing costs associated with a national franchise.

Strategically located in the Northwest Iowa/South Dakota/Nebraska border region with convenient access to I-29, the hotel benefits from its position between several larger regional markets, including Sioux Falls and Omaha. Its location provides access to regional leisure, commercial, and highway travelers while offering convenient connectivity throughout the tri-state area.

The combination of a successful ownership turnaround, substantial recent renovations, multiple branding options, onsite owner/manager housing, and limited near-term capital needs makes this an appealing opportunity for an owner-operator or investor seeking an established Midwest hospitality asset with additional upside potential.