- Three-Story, 55-Room, Upper-Midscale Hotel within the Houston-Woodlands-Sugar Land MSA
- Over $628,000 of Property Renovations and Improvements Completed by Current Ownership – Minimal PIP Expected
- Tactfully Located with Great Visibility off Loop 35 and Highway 6
- Historically Proven Stable Hotel with Average Revenues from 2011-2021 of $1,105,312
- Hotel is 31 Miles Away from the Port of Galveston Cruise Terminal with Carnival Cruises and Royal Caribbean Cruise Lines Currently Leaving, and Disney Cruises and Norwegian Cruise Lines Leaving in Later 2022
- Excellent Opportunity to Implement Strategic Expense Management and Operational Strategies to Increase Performance and Cash Flow
Investment Overview
As the exclusive representative of the seller, Marcus & Millichap's National Hospitality Division is pleased to present for sale to qualified investors the LA Quinta Inn & Suites Alvin (‘Hotel’ or ‘Property’). The Wyndham Hotels-branded Hotel is offered at $4,550,000 or $87,727 per key.
The La Quinta Inn & Suites is a 55-room Hotel located at 880 S Loop 35 Bypass, just off the intersection of Highway 6 and Loop 35. The Property is approximately 46,440 square feet across three floors and has various amenities including a business center, laundry facilities, fitness center, outdoor pool, and 725 SF of meeting and event space. Current ownership has pridefully maintained the limited-service Hotel, investing over $628 thousand in Property improvements.
Alvin is a city in the U.S. state of Texas within the Houston-Woodlands-Sugar Land metropolitan area and Brazoria County. The Hotel is ideally positioned off Loop 35, one of the city’s major thoroughfares, providing accessibility to north/south transient and business travelers. With the region’s employers and popular revenue generators near the Property, this sought-after Hotel benefits from many key industries of the city which include education, customer support, retail trade, and manufacturing. Alvin Community College and Empereon Marketing, two of the city’s largest employers, located approximately two miles from the Hotel, are prime revenue drivers for the surrounding area. Other major employers responsible for a significant portion of the workforce include Walmart, INEOS Olefins & Polymers, Ascend Performance Materials, Ron Carter Automotive, Rice-Tec, and Beaed Corporation. Revenue generators in the area, like the Brazos State Park, Bayou Wildlife Zoo, Space Center Houston, and Kemah Boardwalk help bring additional revenue to the Hotel through an increase in transient business.
In the trailing twelve-month period ending in June 2022, the limited-service Hotel recorded room revenues of over $1.05 million and a net operating income of over $226 thousand, or 20.7 percent of total revenues after a 4 percent reserve for capital replacement. In the same period, RevPAR was recorded at $52.61, leading to a RevPAR penetration index of 103 percent compared to the STR-defined competitive set. A further look at departmental expenses will show current operational inefficiencies, which an experienced owner-operator can mend through cost control strategies and operational incentives.
