A relatively new company from California, AG Dakota, is buying motels and hotels all over the state of South Dakota. This year, AG Dakota has bought over about seventeen properties. They have spent $15 million, and plan to spend $50 million more in the coming decade.
Many things have attracted businesses like AG Dakota to South Dakota, including the fact that the state does not charge state income tax.
With the recent takeover of various hotels and motels, some people may question the motives of AG Dakota. The company assures that they are not trying to pull any unethical tricks. They do not plan on buying up every single business and inflating the prices. The objective of AG Dakota is to invest in the quality of communities and people’s experiences—as opposed to just doing whatever they want in order to make as many profits as possible.
The properties that have been purchased will retain their current names. However, new signage will be made to denote the change in ownership.
One of the big motels bought by AG Dakota was the Fort Pierre Motel. Some of the properties that the company has purchased are in Murdo and Ipswich—places with populations that have shrunk since 2010. AG Dakota thought about temporarily closing the Hospitality Hotel, located in Ipswich, due to the fact that there was only one manage who was around. However, the hotel stayed open because local contractors needed a place to stay. The residents of Ipswich were concerned that their local economy would be negatively affected if temporary lodging was closed down.
Profits can be made by doing business in America’s small towns, and AG Dakota has caught onto this.
AG Dakota also owns properties outside of South Dakota. They own one property in Minnesota, and another property in North Dakota.