CBRE has been exclusively retained to solicit offers to acquire the fee-simple interest in the 194-room Ingleside Hotel and Springs Water Park located at 2810 Golf Road, Pewaukee, Wisconsin.
The Property is located along Interstate 94 west of Milwaukee within the Lake Country of Waukesha County. The Hotel was comprehensively renovated in 2018 and is an attractive option for leisure, corporate and group customers with a variety of amenities and more than 40,000 square feet of superior indoor and outdoor meeting and event space.
The 45,000 square foot Springs Water Park was opened in 2005 and delights adults and kids with thrilling tube and body slides, a meandering lazy river, activity pool, indoor/outdoor hot tub, zero-depth Waukesha Water Works, and the Geyser Games Arcade.
The Property’s site has more than 40 acres of land and is put to good use in the fall with the 26-year running Country Christmas winter wonderland. The Ingleside Hotel and Springs Water Park offers an investor a significant independent, fully renovated, well established resort with in-place cash flow and tremendous immediate and long-term value add opportunities.
Investment Highlights
- In 2018, the Hotel underwent a $15 million renovation which completely transformed the guest experience with a contemporary and warm design throughout the Hotel as well as updated systems. A buyer has little to no cap ex requirements and will be able to focus on operations.
- Since the renovation, the Hotel’s RevPAR penetration has exceeded historical levels and should stabilize in the mid-120% level.
- The Hotel began charging a $15 resort fee in May 2023. With 40,000 room nights a year, this fee could generate nearly $600,000 of new high-margin income.
- The Property has multiple highly profitable income divisions including rooms, extensive events and catering, the water park and arcade, and the Country Christmas. These are well-developed, established, and recognized operations that a new manager can build on.
- With over 41 acres of land, there may be opportunities to expand the Property’s operation or sell pieces off, reducing the basis in the overall investment.
- This is an owner-run operation with limited resources or distribution channels to drive revenue and work down costs. A buyer will likely be able to greatly improve revenues and profitability with a larger and more robust management company supporting the operation.
- The Hotel has had several disruptions and vacancies in its sales staff, which have resulted in losing group sale penetration; a new manager will be able to run an aggressive sales and marketing campaign that should lead to substantial growth in revenue.
- This opportunity will trade at a dramatic discount to replacement cost.
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