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Hodges Ward Elliott is pleased to present for your consideration the opportunity
to acquire the fee-simple interest in the 220-room Cedar Rapids Marriott
(“Hotel” or “Property”). The Cedar Rapids Marriott is the only full-service
Marriott hotel in the market and one of only three Marriott affiliated hotels in
all of Cedar Rapids.  The Property is strategically located adjacent to Cedar
Rapid’s largest employer, Collins Aerospace, a subsidiary of Raytheon
Technologies. This advanced global aerospace and defense industry giant has more
than 9,000 employees in Cedar Rapids with a 3.4 million square foot campus
immediately east of the Hotel.

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PROPERTY OVERVIEW

Hotel Cedar Rapids Marriott Address 1200 Collins Road N.E. Cedar Rapids, IA,
52402 SITE AREA 8.32 Acre Lot Rooms 220 BUILT / RENOVATED 1988 / 2004 FOOD &
BEVERAGE • The Cedar Grille
• Lounge at Cedar Grille
AMENITIES • Fitness Center
• Indoor Pool
• Complementary Shuttle
Parking Self - Complimentary On-Site (474 Spaces) Meeting Space 25,923 SF
INTEREST CONVEYED Fee-simple LABOR Non-union Management Atrium Hospitality
(Unencumbered) FRANCHISE Marriott International (August 30, 2024)








INVESTMENT HIGHLIGHTS

Proximate to Cedar Rapids Strongest Demand Generators

The Property sees a consistent flow of demand from Collins Aerospace, Coe
College (a division III athletic school), and Mount Mercy (an NAIA athletic
school). Other sources of demand include Prospect Meadows, a youth sports
complex home to Perfect Game, the largest baseball scouting service in the
world, and Tuma Sports Complex, the largest tournament-level soccer complex in
Iowa. The Hotel’s coveted full-service Marriott affiliation has allowed it to
consistently capture this demand and outperform its competitive set, with an
average RevPAR penetration of 108.6% from 2017 to 2019.




Additional Upside Following Renovation

The Hotel was converted from an independent hotel to a Marriott in 2004 and has
not been fully renovated since that time. Even in its dated condition, the
Property demonstrated the ability to generate substantial revenue and NOI prior
to the pandemic. As the only full-service Marriott within a 30-mile radius, and
with only two other Marriott properties in the market, the Cedar Rapids Marriott
captures an outsized proportion of the areas Bonvoy Marriott demand, lending it
to account for an estimated 80-90% of the transient business at the Hotel.
Following a comprehensive renovation, the Property will be better positioned to
serve leisure travelers, groups, and Marriott Bonvoy business travelers,
allowing the Hotel to drive rate, revenue, and profitability.



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Top Group Hotel in the Submarket

The Hotel boasts nearly 26,000 SF of meeting space, making it the ideal location
for meetings and events in the northern Cedar Rapids submarket. Direct
competitors in the surrounding area have negligible event facilities,
positioning Cedar Rapids Marriott as the first choice in absorbing demand from
the nearby corporate, SMERF and social groups.




Model Rooms

ROI Opportunities



1. ADDITION OF AN M-CLUB

As part of the comprehensive renovation, new ownership has the opportunity to
convert the underutilized space in the lobby to an M-Club, further attracting
Bonvoy members.

2. QUEEN ROOM CONVERSIONS

Converting all double-double rooms to double-queen rooms would attract more
travelers and allow the Hotel to capture more summer sports team demand, further
driving RevPAR.

3. DEVELOPMENT, LEASE, OR SALE OF 1.2 ACRE LAND PARCEL

The offering includes a 1.2-acre parcel of undeveloped land zoned for commercial
use. A new owner could either choose to develop this into an additional income
stream, lease the property, or sell the land.



Limited Marriott Supply and Favorable Supply Outlook

There are no new hotels under construction in Cedar Rapids. The only other
Marriott-branded hotels in the market are the 66-room Residence Inn (North Cedar
Rapids) and the 92-room Fairfield Inn and Suites (South Cedar Rapids). The
Residence Inn is located 0.9 miles west of the Marriott. It opened in 1997 and
has not been renovated since 2012. Given the rising costs of construction, the
pace of new hotel development is likely to remain low for the foreseeable
future, and there will likely never be another full-service Marriott built in
Northern Cedar Rapids. Once renovated, the Marriott Cedar Rapids will
undoubtedly be the top-performing hotel in the area.



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Clean Offering with Maximum Flexibility

The Property is being offered unencumbered of management, non-union, and with a
fee-simple title, providing operational flexibility to a new owner. In addition,
the current Marriott franchise agreement expires in 2024, allowing the owner
optionality of converting to another brand or renewing the agreement with
Marriott.



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Sign Confidentiality Agreement
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Atlanta: 3344 Peachtree Road NE, Suite 2500, Atlanta, GA 30326 • (404) 233-6000
www.hodgeswardelliott.com

Exclusive Representatives

Jeff Berkman
Director
jberkman@hodgeswardelliott.com
Michael Tormey
Senior Vice President
mtormey@hodgeswardelliott.com
Melissa Tsourmas
Vice President
mtsourmas@hodgeswardelliott.com
Mackenzie Melikian
Analyst
mmelikian@hodgeswardelliott.com

Financing Representative

Michael Straw
Managing Director
mstraw@hodgeswardelliott.com