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Located in the historic vacation lake city of Alexandria, Minnesota, this Holiday Inn Express marks the fourth modular hotel IHG (the parent company of Holiday Inn) has developed in North America and the first in Minnesota. The project represents a meaningful step in IHG’s growing exploration of off-site construction for its franchise network.
A modular delivery method is particularly well-suited for hospitality projects, and this hotel is no exception. Based on a traditional Holiday Inn Express prototype, the hotel includes guest rooms supported by a first floor that includes meeting and conference spaces, along with amenities and a pool designed to serve both travelers and the local community.
The project was driven by speed-to-market goals and the realities of building in northern Minnesota’s climate. Manufacturing progressed efficiently in RISE’s climate-controlled facility, allowing production to continue through winter conditions and stay ahead of site readiness due to soil corrections.
With Alexandria’s limited access to skilled labor, shifting a significant portion of construction off-site has reduced reliance on local trades and time spent on-site, optimizing the overall schedule.
This project also served as a hands-on learning opportunity for IHG. Representatives from across the organization — including local teams and leadership traveling from Atlanta and New York — visited the site to better understand the value of modular construction and how off-site strategies could be more broadly supported across IHG’s franchise system. With limited prior modular experience among the project team, close coordination and collaboration were essential to successfully integrating modular delivery into a traditional hospitality model.
Despite site-related complexities, RISE’s modular approach is expected to significantly outperform a traditional build by allowing manufacturing to proceed through winter conditions and parallel to site work. This strategy supports an accelerated path to opening, despite northern Minnesota’s climate and site challenges.
By shifting a substantial portion of construction off-site, the project reduced reliance on limited local labor and minimized schedule-related cost risk. Improved predictability and reduced rework has helped to control costs compared to a traditional hospitality build in a constrained regional market.
Guest room modules constructed in our climate-controlled facility protected building components from weather exposure during construction and allowed for consistent assembly and inspection. This approach ensures durable, high-quality accommodations that meet IHG’s brand standards while delivering a proven product.
Factory-based construction reduces material waste and improves resource efficiency through repeatable processes. Condensed on-site activity and optimized logistics further reduce the project’s environmental impact compared to traditional construction methods.
Limiting on-site labor and work at height improves overall jobsite safety. Modular delivery creates a more controlled construction environment, particularly valuable in winter conditions and on a site with additional soil-related scope.
Off-site construction has shortened the on-site build duration, reducing noise, traffic and disruption in the growing Alexandria community. This has minimized the negative impact construction can have on surrounding businesses and residents.
Our team’s expertise spans the commercial real estate and offsite construction spectrum from development, design and preconstruction to manufacturing and general contracting.
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