Nov. 14, 2022

The Ramada by Wyndham across from the Denny Sanford Premier Center complex is for sale.

The 150-room hotel at 1301 W. Russell St. is listed for $19 million with NAI Sioux Falls.

Rapid City-based JoBu Hospitality bought the property in 2019 and is divesting its interest because of the possibility of acquiring a new hotel or other business, listing agent Dale Zomer said.

The hotel has “multiple amenities unlike any hotel in town,” he said, including a water park and arcade.

The hotel was built in 1962. All rooms have been renovated recently along with a new hot tub, pool deck with matching furniture, improved room locks and keys, and all new paint.

It’s a 123,702-square-foot building that has averaged 64 percent occupancy for the past 12 months, with average revenue per available room of $86.20.

There has been “quite a bit of interest, to my surprise, with the size of the property,” Zomer said. “But what is concerned to all is the rising interest rates.”

While 2021 was “an excellent year in hospitality” as far as acquisitions, this year “there wasn’t near the inventory we had last year, but it was still a relatively good year,” he continued.

“Now already, the 2023 pipeline I have going, just (recently) two very sizable hotels I had under contract fell out due to the high interest rates as this adversely affects the annual debt service.”

The on-site restaurant at the Ramada is leased by Boss’ Pizzeria & Sports Bar, which has two years left on a five-year lease.