- Three-Story, 62-Room, IHG-Branded Hotel
- Priced at an Attractive 3.10 RRM on Year-End 2021 Room Revenues
- Excellent Location off Highway 79 Near a Variety of Demand Generators
- 110 Percent RevPAR Penetration Index in 2019
- Current Room Revenues Up Over 30 Percent Compared to Year-End 2019
Overview:
As the exclusive representative of the seller, Marcus & Millichap's National Hospitality Division is pleased to present for sale to qualified investors the Holiday Inn Express Palestine (‘Hotel’ or ‘Property’). The InterContinental Hotels Group-branded Hotel is offered at $5,200,000 or $83,871 per key.
The Holiday Inn Express is a three-story, 62-room Hotel stationed just off Highway 79, located in Palestine, Texas. The Hotel features a business center, self-service laundry room, outdoor swimming pool and spa, and fitness center. The Property is comprised of both spacious king-size rooms and double queen bed guest rooms, each equipped with various room amenities such as flat-screen television, mini-refrigerator, and microwave.
Palestine, Texas is located in West Texas, equidistant from the major cities of Dallas, and Houston, Texas, and Shreveport, Louisiana. The city is the county seat of Anderson County and comprises the Palestine Micropolitan Statistical Area. The area is most notable for its natural environment and historic landmarks. Every year, Palestine holds a festival to celebrate the Dogwood floral blooming season at the Davey Dogwood Park. The 200-acre woodland area, located less than four miles from the Hotel, is a popular nature site for hiking, bicycling, and other outdoor recreational activities. Anderson County preserves over 25 historic sites on the National Register of Historic Places, making Palestine a favored stop amongst travelers.
The Property’s location places it in an ideal spot for business and leisure travelers. The largest employers in the area include Texas Department of Criminal Justice (15 miles), 5J Trucking (4.2 miles), Palestine Regional Medical Center (4.2 miles), Sanderson Farms (3.5 miles), and Walmart Superstore (3.2 miles) and Distribution Center (2.7 miles). The Columbia Scientific Balloon Facility, an affiliate of NASA, is less than eight miles away. The Hotel also benefits from the room demand generated by the University of Texas at Tyler – Palestine Campus, which is less than four miles away.
The Hotel has outperformed the STR defined competitive set and posted a RevPAR penetration index of 110 percent in 2019, as well as room revenues of about $1.28 thousand and a net operating income over $283.2 thousand or 21.9 percent of gross revenues; after a 4 percent reserve for capital replacements and a 3 percent management fee reserve. The Hotel recorded room revenues of over $1.675 million through 2021, an increase of over 30 percent compared to year-end 2019.
