- 72-Room, Interior Corridor, Upper-Midscale Hotel Built in 2015
- Operating as One of the Leading Hotels in the Market Competitive Set
- Room Revenues Have Increased Over 43 Percent Since Year-End 2017
- Priced With an Attractive 14.51 Capitalization Rate
- July 2018 Trailing 12-Month Room Revenues Over $2.2M
Investment Overview:
Marcus & Millichap's National Hospitality Group, as an exclusive representative of the seller, is pleased to present for sale to qualified investors the Comfort Inn & Suites Lovington. The Choice Hotels International-branded hotel is priced at $7,100,000 or $98,611 price per room; this represents a 3.17 multiple on July trailing 12-month room revenues. An established property, constructed in 2015, is located on Texas Highway 82 less than two miles from the downtown area. The hotel features an indoor pool, fitness center, and a meeting room.
Priced at an attractive 14.51 percent capitalization rate, this three-story, 72-room hotel presents a new owner the opportunity to acquire a fully stabilized hospitality asset. Operationally, this hotel is bringing in upwards of $2.2M in room revenue on the trailing twelve-month financials while effectively operating with a net operating income of approximately 46 percent of overall revenues; this equates to roughly $1 million before debt service. The subject property's above-market occupancy has allowed the hotel to experience growth in room revenues in excess of 40 percent since 2017 and become one of the leading properties in the market; also this hotel is the only franchised property in the growing market which allows for additional stable and long-term business.
The Comfort Inn and Suites Lovington is situated less than one mile from the largest employer in the city, Nor-Lea Hospital District. The Economic Development Corporation projected recent growth in the city and attributes it to the influx in Oil & Gas Extraction. There has been over 150 new homes built in the last two years and a population growth of 6,000 people. Another recent development in the city includes a brand new multifamily project, Lovington Trails Apartments, broken down into two phases with phase two currently scheduled for development.
The expenses include provisions for a three percent management fee and four percent reserves for capital replacement. The hotel is offered fee simple, unencumbered by management and debt.
Property Overview:
The Comfort Inn & Suites Lovington is a 72-room, three-story, interior corridor hotel built in 2015. Well-equipped with numerous common area and guest room amenities, this limited-service upper midscale hotel offers spacious guest rooms that come furnished with a microwave, refrigerator, lounge chair, work desk with ergonomic chair, and a flat-screen television with premium channels. Some splendid common area amenities the hotel has to offer consist of an indoor pool, fitness center, business center, a meeting room, and laundry facilities.
Location Overview:
Lovington, New Mexico is a city located in Lea County in the southeast region of the state, 100 miles west of Lubbock, Texas and 300 miles southeast of Albuquerque. The Comfort Inn & Suites Lovington is superbly positioned on Main Street, near West Birch Avenue and East Polk Avenue. With the city's major employers and popular revenue generators in close proximity to the property, this sought after hotel benefits from many key industries of the town which include mining, oil and gas extraction, healthcare & social assistance, and education services. Ferguson Construction and Patterson-UTI Drilling, two of the city's largest employers located approximately 1.4 and 21.5 miles from the hotel respectively, are prime revenue drivers for the surrounding area. Other major employers that are responsible for a significant portion of the workforce include Halliburton (15.7 miles) and Lea Regional Medical Center (16.3 miles). Revenue generators in the area, like Lovington Country Club (3.4 miles) and Lea County-Zip Franklin Memorial Airport (6.1 miles) help bring additional revenue to the hotel through an increase in transient business. Extra demand drivers for the city include Chaparral Park (1.9 miles) and Lea County Fairgrounds (1.2 miles).
Broker of Record
Matt Reeves
NM 19583
