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Reagan Hotel to reopen soon

New owners are remodeling, will call it Magnuson Hotel of Dixon

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(Alex T. Paschal/apaschal@saukvalley.com)
Reagan Hotel & Suites is being remodeled by new owners USA Resorts and Hotel Group, of Lansing, Mich., and will reopen soon as Magnuson Hotel of Dixon. The 89-suite hotel at 443 state Route 2 has been vacant for 5 years.

DIXON – A Michigan company has bought Reagan Hotel & Suites and plans to reopen it soon as Magnuson Hotel of Dixon.

USA Resorts and Hotel Group, based in Lansing, bought the long-vacant hotel from Community State Bank on Friday, USA Resorts Regional Manager Kerry Wallsworth said.

The hotel at 443 state Route 2 has been vacant for 5 years, Wallsworth said.

It was listed in June 2011 with Micoley and Co., based in Green Bay, Wis. and was auctioned online several times, but no sales were made known until Monday.

Wallsworth declined to say how much USA Resorts paid for the property. It is remodeling the hotel and hiring staff, and will have a restaurant, she said.

She wouldn’t give an opening date, but said “we look forward to getting it back open. We really enjoy the city of Dixon.”

The hotel, built in 1984 and expanded in 1990 to 89 suites, will work with Brandywine banquet facility to house wedding guests, and will offer room discounts to local residents, Wallsworth said.

Dixon has two other hotels with a total of about 150 beds, Dixon Mayor Jim Burke said.

“I think it’s wonderful, absolutely,” Burke said of the deal. “It’s a nice facility. It’s a real asset to the community.”

The hotel will be a big asset to Brandywine, too, he said.

“People have weddings, they like to have hotels close by where they don’t have to get in their cars and drive. That will augment the attractiveness of Brandywine, no question.”

Dixon has hosted events that drew more visitors than its hotels could accommodate, Burke noted.

“They’d have to go to Rock Falls or DeKalb or Rochelle to get rooms,” he said.

The hotel is outside of Dixon’s city limits, and so won’t generate sales tax money for the city, but it will generate 5 percent sales tax for Lee County Tourism, Burke said. That group promotes attractions in the county, including Dixon sites, he said.

Another hotel might open someday soon near the interchange of state Route 26 and Interstate 88, Burke said.

“I think it’s just going to be a matter of time before we see another hotel by the interchange, also,” Burke said. “They run good occupancy.”

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