Lester Hospitality - Sioux Falls LLC

Lester Hospitality - Sioux Falls LLC, doing business as Holiday Inn Sioux Falls City Centre, provides temporary lodging services to federal military and civilian agencies as a prime contractor under a total small business set-aside posture, with 100% of recent awards designated as Total Small Business and 71 prime awards across an 11-agency customer base since 2003. The company is a small-business limited liability company headquartered in Sioux Falls, South Dakota (100 W 8th Street), operating under NAICS 721110 (Hotels except Casino Hotels and Motels) with firm fixed-price service delivery across military training, veteran healthcare, and government event accommodations.

Customer concentration is extreme and single-source dependent. The Department of the Air Force Air National Guard accounts for 80% of awards by count (38 awards, $8.7 million combined potential value) and dominates both rankings by volume and dollars. The remaining four top customers—South Dakota Army National Guard (8 awards, $45 thousand), Department of Veterans Affairs Veterans Health Administration VISN 23 (5 awards, $595 thousand), Department of the Army (5 awards, $61 thousand), and Department of Justice US Attorney's Offices (1 award, $5 thousand)—collectively represent 20% of recent award count and roughly 8% of combined potential value. The Air National Guard relationship accounts for 85% of the combined potential value footprint.

The vendor holds position on two parent vehicles. The primary vehicle is a multiple-award Blanket Purchase Agreement (W50S9622A0002) established by the Air National Guard on April 1, 2022, with an ultimate completion date of March 31, 2027; 33 task orders valued at $250 thousand each total $8.3 million in combined potential value. The second vehicle is Indefinite Delivery Contract V438P2113, issued by the Department of Veterans Affairs, carrying 10 task orders worth $828 thousand combined. Both vehicles are non-set-aside parent IDVs, but all task orders issued against them have been designated Total Small Business set-asides. Representative work includes monthly $250 thousand BPA calls from the Air National Guard for hotel rooms supporting Unit Training Assemblies in Sioux Falls (January 2026, February 2026, and prior months dating back to October 2022), a $250 thousand Air Force airshow lodging call (July 2023), and recurring veteran healthcare accommodations through the VA VISN 23 contract.

Activity is stable on the Air National Guard core and declining overall. From 2022 to 2025, the vendor received 2, 8, 11, and 11 awards per year, respectively, with only 2 awards recorded in 2026 year-to-date as of the February 2026 source snapshot. Recompete exposure is material: 33 awards with an ultimate completion date of March 31, 2027 carry $8.3 million in combined potential value, representing all Air National Guard BPA task orders currently active and all recompete risk for the vendor in the next twenty-four months. The vendor has no documented subcontractor relationships across its award footprint and performs all work independently at its Sioux Falls property. Obligated dollars total $789 thousand (8% of the $10.2 million combined potential value), signaling early or incomplete invoicing across the active portfolio.