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Holiday Inn of Detroit Lakes

Detroit Lakes, Minnesota

Sold

The Holiday Inn in Detroit Lakes is centered in one of northern Minnesota’s premier resort and vacation areas. It has a prime lakefront location with sandy beaches and balconies facing the lake. The owner was facing an expensive property improvement plan upgrade mandated by Holiday Inn and had decided to attempt to sell the property instead of diverting resources from other projects to upgrade this hotel. The property had been under contract but failed to successfully close. Ted Leines received the assignment with instructions to find a new buyer that could complete the transaction. The challenge to this sale was to overcome the objections raised by prospective buyers regarding the size of the property improvement plan imposed by Holiday Inn. These arguments would result in lower value offers.

Sale Highlights: A marketing program brought in prospective buyers from all regions of the US. As expected, most of these buyers focused on the property improvement costs associated with a purchase. Ted's discussions with prospective buyers focused on revenue opportunities that were available by maintaining the franchise or by reflagging the property.  Eventually a single prospective buyer came forward that saw the opportunity this property presented. Ted Leines was involved in extensive discussions and negotiations with this buyer that resulted in an offer acceptable to the seller. Once the property was under contract additional negotiations took place to resolve objections that surfaced during the due diligence phase. All issues were addressed and the property closed successfully.