Hotel Mead – Wisconsin Rapids, Wisconsin

hotel-mead-225The five-story, 154 guestroom Hotel Mead & Conference Center – Wisconsin Rapids, WI, benefits from its downtown location in central Wisconsin, 18 miles from Stevens Point, 48 miles from Wausau, 55 miles from Wisconsin Dells and 105 miles from Madison. Built in 1978 and 1998, the hotel has a four-story atrium lobby, indoor swimming pool, whirlpool, two restaurants and a bar. In addition, the hotel contains 16,000 square feet of event space.

Challenge
Based on the need for capital improvements, finding a buyer who could undertake the significant financial demand was challenging. In addition, the hotel operation is very labor and management intensive. The hotel had continued to experience an operating loss year-after-year.

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 and repositioning.

Results
The new owners, a seasoned team of hoteliers, planned to renovate and upgrade the property.

Year 1 Year 2 Year 3
A.D.R. $76.39 $77.52 $84.36
Occupancy 35.1% 35.9% 37.8%
RevPar $26.81 $27.83 $31.88
Room Revenue $1,511,328 $1,566,085 $1,792,502
Total Revenue $2,915,398 $2,966,327 $3,464,379
NOI -$213,524 -$183,703 $102,222