1610 I-10 S, Beaumont, Texas 77707
The Howard Johnson located in Beaumont, Texas is priced at an attractive $41,949 per key. The hotel is being offered at 2.99 times the February 2018 Trailing Twelve Room Revenue. Existing ownership is absentee and operates the hotel with above-market payroll and operating expenses. An owner-operator should be able to drastically reduce payroll and expenses to produce a Net Operating Income of more than $500,000.
According to the Year 1 Pro-Forma, a new investor should experience a cash-on-cash return of above 28% with typical SBA-7A loan terms. The Year 1 Pro-Forma suggest similar gross revenue numbers however it takes into consideration industry standard operating and payroll expenses. At the $4.95M purchase price with adjusted expenses to industry standard figures, a new investor would realize a 11.82% Cap Rate.
The Howard Johnson Beaumont is a 118-Room, exterior corridor, economy hotel located directly off Interstate 10 South Beaumont, Texas. Built in 1984, the hotel is well maintained with masonry construction and an angled roof. This two-story hotel features an outdoor pool, meeting facilities, fitness center, and free parking for cars, trucks, and RV’s. Room amenities include microwaves, refrigerators, Wi-Fi Internet access, and non-smoking and handicapped-accessible rooms.
The property recently experienced flooding from the Hurricane Harvey however existing ownership has repaired or replaced all affected rooms and equipment.
Beaumont is a city in Texas located in Jefferson County, just East of Houston, in the Golden Triangle. The hotel is located just off I-10 and HWY 90 just minutes away from plenty of employers and attractions. The city has many large employers like Memorial Hermann Baptist Hospital (1.4 miles), Baptist Hospital of Southeast Texas (1.5 miles), Exxon Mobil Oil Corporation (4.7 miles), Lamar University (5.8 miles), and Goodyear (8.7 miles) all of which are within close proximity to the property. On top of all the nearby top employers, the hotel is also located close to many demand generators which include Parkdale Mall (5.6 miles), Beaumont Municipal Airport (5.3 miles), Ford Park Entertainment Complex (5.7 miles), and Downtown Beaumont (3.5 miles) where many museums are located.
Agent for this listing
Vice President Investments, National Hospitality Group
Office: (303) 328-2036
Mobile: (540) 522-9115