- 75-Room, Interior Corridor, Upper Midscale Hotel Built in 2006
- Offered at 3.17 RRM 2018 P&L
- Operational Upside for Prospective Hands-On Owner-Operator Investor
- Priced Below Replacement Cost at $73,333 Per Key
- Located Five Miles from SeaWorld San Antonio
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 Suites Near SeaWorld. The Choice-branded hotel is priced at $5,500,000 or $73,333 price per room; this represents a 3.17 times multiple on year-end 2018 room revenues. An opportunistic property, constructed in 2006, is located on Alamo Downs Parkway, five miles east of SeaWorld.
This three-story, 75-room hotel presents a new owner the opportunity to acquire a cash-flowing hospitality asset within the San Antonio MSA. An investor, looking to act as an owner-operator, has the potential to capture a more significant percentage of the top line revenues by normalizing expenses and employing moderate reductions to the overall management cost. The hotel is equipped with an indoor pool and spa tub, business center, and conference space.
Operationally, the hotel achieved $1,734,719 in room revenue, resulting in a net operating income of 28.8 percent of total revenue; this equates to about $506,009 before debt service. With the suggested financing, the new owner can anticipate a total year one return upwards of 18 percent after capitalizing on principal reduction and fulfilling the debt service requirement. The property has been consistently outperforming the competitive set in both occupancy and ADR, reaching a RevPAR penetration index of 115 percent. Focusing on increasing the hotel’s operational efficiency, a new owner can see a significant boost in hotel performance, seizing a larger portion of top-line revenues.
The expenses include provisions for a four percent reserve for capital replacement. The hotel is offered fee simple, unencumbered by a management contract and debt. New investor will be required to finish Choice Truly Yours Property Improvement Plan estimated to be $350,000, or less.
Property Overview:
The Comfort Suites Near Seaworld is a 75-room, interior-corridor, three-story hotel located in San Antonio, Texas. Built in 2005, the hotel has a wood frame and a stucco and brick exterior with an angled roof. Amenities at the hotel include an on-site fitness center as well as fully-equipped business center, meeting space, guest laundry facilities, and an indoor pool/whirlpool/hot tub. All suites feature refrigerators, microwaves and flat-screen televisions.
Location Overview:
San Antonio, Texas is located in the south-central portion of the state and is approximately 1.5 hours from the Austin and 3.25 hours from the Houston city centers. The Comfort Suites Near SeaWorld is stationed on 8021 Alamo Downs Parkway and in close proximity to multiple demand generators in the region. Leisure travelers annually visit Seaworld & Aquatica San Antonio (6.9 miles) which debut new attractions every year. In 2019 a 126,000-gallon coral reef is planned to be unveiled and the exhibit is partnered with the University of Texas Marine Science Institute's Amos Rehabilitation Keep (ARK). An additional attraction is Downtown San Antonio and home to the Riverwalk and the Alamo with both hosting multiple events monthly. The Lackland Airforce Base (9.8 miles) which hosts multiple graduation events for the trainee's guests to attend also is a popular destination and an additional room demand generator. There are multiple investors coming to the region with one being the NYC-based investor, BME Texas Holding, LLC purchase of a 351-bed senior living portfolio that was appraised for $16.2 million by the Bexar County Appraisal District. Also in March of 2019 the San Antonio International Airport's (12.8 miles) two terminals handled more than 907,000 passengers in March which was a record and 7% gain over the same period a year ago.
