INVESTMENT HIGHLIGHTS
- Upper-Midscale Brand Hotel: A four-story, 86-room Hampton Inn & Suites operating under Hilton Worldwide.
- Recent Renovation: Fully renovated throughout 2024 and 2025 with only minor remaining improvements.
- Strategic Gulf Coast Location: Positioned within a growing industrial and energy corridor near major freight routes, like TX-35 and TX-60, supporting transient and business travel.
- Healthcare-Driven Occupancy: Proximity to Matagorda Regional Medical Center and MidCoast Medical Center.
- Port and Maritime Demand: Benefits from proximity to the Port of Palacios and regional industrial activity.
- Comprehensive Amenity Package: Outdoor pool, fitness center, complimentary breakfast, and approximately 1,712 SF of meeting and board room space.
- Regional Growth & Employment Base: Economy supported by major industrial expansions and infrastructure investments including STP, Röhm America, OXEA Chemicals, Air Liquide, and RWE’s 243 MW Payton Creek II Wind Farm.
FINANCIAL HIGHLIGHTS
- Elevated RevPAR Penetration: The hotel boasts a strong RevPAR penetration index of 141 percent for the twelve months ending in March 2026, signaling robust competitive performance and attractive long-term value for potential buyers.
- Fee Simple Acquisition: The hotel provides full ownership and operational control, enabling independent financing and management. This structure typically supports long-term property appreciation, making it a compelling investment opportunity.
INVESTMENT OVERVIEW
As the exclusive representative of the seller, Marcus & Millichap is pleased to present for sale to qualified investors the Hampton Inn & Suites Bay City (‘Hotel’ or ‘Property’) located at 4617 7th Street in Bay City, Texas. The upper-midscale, Hilton-branded Hotel is offered at $9,400,000 or $109,302 per key.
Situated on approximately 1.91 acres, the Property features 86 guest rooms and a variety of amenities designed to accommodate both business and leisure travelers. The Property features a fitness center, outdoor pool, 91 parking spaces, and two meeting spaces totaling approximately 1,712 square feet—including a board room and flexible meeting room. Originally constructed in 2009, the Hotel underwent a comprehensive renovation throughout 2024 and 2025, with most improvements completed and only the front desk and suite shop remaining for completion by a new owner.
The Property benefits from excellent regional accessibility via TX-35 and TX-60, supporting transient demand and freight-related travel tied to Gulf Coast industrial activity. Major nearby demand generators include the Tenaris Bay City manufacturing facility, one of the region’s largest industrial employers, along with Equinor’s offshore energy operations in Houston, which drive significant corporate and contractor lodging demand. Additional support comes from nearby healthcare institutions including Matagorda Regional Medical Center and regional hospitals like MidCoast Medical Center, as well as Wharton County Junior College. The Property is also less than an hour from the Port of Palacios, contributing to industrial and maritime-related travel demand. Leisure visitation is supported by Bay City’s location near wildlife refuges and bird-watching destinations, as well as convenient access to the Gulf Coast beaches approximately 28 miles away.
Bay City serves as the county seat and primary economic hub of Matagorda County, strategically positioned along the Texas Gulf Coast. The city benefits from a diverse and resilient economy supported by energy production, manufacturing, healthcare, agriculture, and port-related industries. Its proximity to offshore energy operations and major industrial facilities throughout the Gulf Coast region continues to generate stable business activity and year-round economic demand. Moreover, Bay City’s location along TX-35 and TX-60 provides direct regional connectivity to Houston as well as the surrounding markets of Brazoria, Jackson, and Wharton Counties. This transportation infrastructure supports commercial activity, freight movement, and commuter accessibility throughout southeast Texas. The market’s strategic location also positions it to benefit from ongoing industrial expansion and investment occurring across the Gulf Coast energy and petrochemical corridor. Known as the “Gateway to the Great Outdoors,” Bay City also offers a wide range of recreational and lifestyle amenities that contribute to leisure visitation and overall quality of life. The city maintains 23 parks, a splash pad, swimming pool, and sports complex; while nearby attractions include the Matagorda County Birding and Nature Center, Rio Colorado Golf Course, Matagorda County Museum, and the historic downtown square. Additional entertainment destinations such as Shulman Movie Bowl Grill and Bowlera provide year-round appeal for residents and visitors alike. Overall, Bay City represents a stable and attractive hospitality market supported by both business and leisure demand drivers.
The Matagorda County Economic Development Corporation is actively advancing multiple economic development projects focused on industrial recruitment, workforce development, and infrastructure improvements that are expected to generate substantial capital investment and long-term job creation throughout the region. Major employers and industrial users continue to expand operations in the county, including the South Texas Project Electric Generating Station (“STP”), the county’s largest private employer, which recently entered a new ownership phase following Constellation Energy’s $1.75 billion acquisition of NRG Energy’s stake in the facility. Additional regional investments include Röhm America’s world-scale methyl methacrylate production facility, OXEA Chemicals’ “Propel” expansion project, Air Liquide’s expanded industrial gas infrastructure, and RWE’s completed 243 MW Payton Creek II wind farm. Furthermore, the approximately $86 million Sargent Beach restoration initiative, ongoing drainage and infrastructure improvements, and continued tourism and coastal development efforts position Matagorda County for sustained economic growth and enhanced economic resilience over the long term.
