Cedar Rapids Marriott, Residence Inn up for auction

The Cedar Rapids Marriott is up for auction. According to a listing on the commercial real estate site Ten-X, the Marriott, a 220-room hotel at 1200 Collins Rd. NE originally opened as the Collins Plaza Hotel in 1988, is being marketed with a starting bid of $3.2 million. The 187,782-square-foot Cedar Rapids Marriott, built on an 8.32 acre parcel, is described in auction documents as “the only full-service Marriott hotel in the market and one of only three Marriott-affiliated hotels in all of Cedar Rapids.” The listing includes several value-added projects that could improve the hotel’s value, including “renovation, room type conversion, developing or selling an existing ~1-acre land parcel, and more.” The seven-floor hotel, which was operated as the Collins Plaza Hotel before a 2004 renovation and conversion to the Cedar Rapids Marriott, includes amenities such as a business center, fitness center, pool, restaurant, on-site retail and on-site bar. “In addition, the current Marriott franchise agreement expires this summer, allowing the owner optionality of converting to another brand, renewing the agreement with Marriott, or exploring alternate-use scenarios,” the listing adds. “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.” The online auction for the Cedar Rapids Marriott is set to run from May 2-4. The property is currently assessed at $10.547 million.

Bidding for the Residence Inn Marriott, another Cedar Rapids hotel being offered for sale, ended April 19. With a high bid of $6.2 million, the reserve price for the hotel was not met, according to the property’s auction listing. “This property represents the opportunity to acquire a premium-branded extended-stay Marriott hotel,” the auction listing said, describing the hotel as “well-equipped with guest suites, a fitness center, an indoor pool, a basketball court, and more.” The three-story, 47,650-square-foot Residence Inn is an extended-stay hotel built in 1996 on 2.01 acres. “Investors can increase NOI (Net Operating Income) flow-through by trimming expenses and finding more efficient asset management opportunities,” the listing says. “1900 Dodge Road NE offers a 15-year relicense with Marriott upon completion of new buyer PIP (Property Improvement Plan).” The Residence Inn was renovated in 2004, according to the listing. The property has a total assessed value of $3.42 million.