• Holiday Inn Express & Suites Bellevue   


CBRE Hotels is exclusively offering for sale two IHG branded hotels: the 85-room Candlewood Suites and 87-room Holiday Inn Express & Suites, located adjacent to one another in Bellevue, Nebraska, a suburb of Omaha.

CBRE Hotels;

CBRE Hotels is exclusively offering for sale two IHG branded hotels: the 85-room Candlewood Suites and 87-room Holiday Inn Express & Suites, located adjacent to one another in Bellevue, Nebraska, a suburb of Omaha. The strong performing hotels are being offered at an approximate 9% capitalization rate on the trailing 12-month NOI.

Built in 2009 and 2006 respectfully, and extensively renovated in 2019 and 2017, the properties enjoy the benefit of being the closest quality hotels to the entrance of Offutt Air Force Base, which is headquarters for the U.S. Strategic Command of the 557th Weather Wing and the 55th Wing of the Air Combat Command (2nd largest in the Air Force). Offutt has over a $2.7 billion economic impact within the community, with over 11,000 military and civilian personnel affiliated with the base. Notably, there are no on-base lodging options. Consistent training at the base brings in demand from both domestic and international sources. Per diem government rate ($98 in 2022-2023) is a major component of demand. With per diem rates increasing $9 as of October 1, 2023, to $107, there will be a significant built in increase in revenue for the hotels.

As an economy-scale, extended stay hotel, the Candlewood Suites generates a significant portion of its demand from highly profitable long-term guests that do not require daily housekeeping. The Candlewood Suites’ operating model does not include complimentary breakfast and, consequently, the hotel is able to run high operating margins and generate outsized operating profit. With the hotel’s location next to Offutt Air Force Base, the property’s demand is aligned with the constant need for temporary, long-term housing related to base activities. The hotel was extensively renovated in 2019 and is in excellent condition. Nearly 75% of the hotel’s demand is extended stay.

The Holiday Inn Express & Suites is an excellent complementary hotel to the Candlewood Suites. The hotel offers visitors a traditional transient hotel with a larger amenity base. The hotel was extensively renovated in 2017 to Formula Blue standards in the guestrooms and public areas.

The hotels are only nine miles away from downtown Omaha, which provides access to extensive retail and dining amenities. Omaha is also home to numerous leisure attractions, such as the Henry Doorly Zoo and Aquarium, Joslyn Art Museum and Durham Museum. In addition, Omaha hosts major annual events that notably include the two-week NCAA Men’s College World Series held in Omaha every June since 1950 and considered one of the longest-running sporting traditions in the country. Room rates during the College World Series peak at several hundred dollars a night.

Investment Highlights

  • Strong in place cash flow equates to an approximate 9% capitalization rate on pricing guidance
  • Excellent location adjacent to Offutt Air Force base; closest quality hotel product to the base
  • Extended-stay suites are extremely sought after by military and defense contractor business that are staying in the area for a week or more
  • Both hotels underwent extensive recent renovations (Candlewood Suites 2019, Holiday Inn Express & Suites 2017) and are in excellent condition
  • Currently operated by an out of state regional management company
  • Per diem government rate, a large portion of the Candlewood Suites’ demand, is increasing $9 in October 2023
  • Potential new entertainment district to be built in Bellevue, NE called Bellevue Downs
  • Both properties are located 3 miles from the entrance to Offutt Air Force Base and a 15-minute drive from downtown Omaha

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