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.