Investment Highlights:
- Prime Location: Located just off Highway 281 and Redland Road, the Property is highly visible from the expressway and less than two miles from the Methodist Hospital Stone Oak
- Value Add Opportunity: Although the Property is in good condition, the completion of the impending property improvement plan would present a significant value add opportunity for a new buyer through rate escalation and expense management. In addition, there is an opportunity to convert franchise to Country Inn & Suites. Contact agent for details on conversion opportunity.
- Significant Discount to Replacement Cost: With construction costs of a new hotel well-exceeding $65,766 per key, the Property is offered at a significant discount to replacement cost including costs to complete the change of ownership PIP.
- Prominent Submarket: Situated in the Stone Oak Area of north San Antonio, the hotel is strategically positioned to capitalize on transient and leisure travel within the San Antonio MSA.
- Diverse Demand Generators: SeaWorld San Antonio, Natural Bridge Caverns, Methodist Hospital Stone Oak, and the Village at Stone Oak are all nearby business drivers to the property and help bring in additional transient and leisure demand.
- Clean Offering: The Property is offered fee simple and clear of existing management, financing contracts, and minimal liquidated damages if investor chooses to convert franchise.
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 Holiday Inn San Antonio North Stone Oak Area. The IHG-branded hotel is priced at $7,300,000 or $65,766 price per room; this represents a 5.08 times multiple on November 2020 trailing 12-month room revenues. An opportunistic property, constructed in 2010, is located on Redland Road, off Highway 281.
This four-story, 111-room hotel presents a new owner the opportunity to acquire a value-add asset within the San Antonio MSA. This hospitality asset is being sold at a price below replacement cost.
Operationally, the hotel achieved $1,436,127 (TTM November 2020) in room revenue and approximately $1.5 million in total revenues.
To revamp brand standards, a new owner can expect a change-of-ownership PIP (H4) cost of approximately $10,000-$12,000 a key. New Ownership will also have the option to convert the asset to a Country Inn & Suites by Radisson with an estimated change-of-ownership PIP cost of $6,500-$7,500 a key.
The hotel is offered fee simple, unencumbered by a management contract and debt.
Property Overview:
The Holiday Inn San Antonio North Stone Oak Area is a 111-room, four-story hotel constructed in 2010. The upper-midscale hotel features an indoor swimming pool, on-site restaurant and bar, 24-hour fitness center, and over 3,000 square feet of conference space. Other amenities include free wireless high-speed internet access and a fully equipped business center. All spacious guest rooms offer a flat-screen television with cable, desk, coffee maker, refrigerator, and microwave.
Location Overview:
San Antonio, Texas is a city located in Bexar County in the south-central region of the state, 200 miles west of Houston and 90 miles southwest of the state capital, Austin. The Holiday Inn San Antonio North Stone Oak Area is positioned on Redland Road near the Highway 281 and Loop 1604 intersection. This hotel is near many popular revenue generators and major employers. Nearby revenue generators include Vineyard Shopping Center (4.6 miles), Morgans Wonderland (8.1 miles), San Antonio International Airport (9.2 miles), The University of Texas at San Antonio (12.9 miles), Six Flags Fiesta Texas (12.1 miles), and the San Antonio Zoo (14 miles). Many of the citys employers, like Valero Energy Corporation (14.2 miles) and Frost National Bank (17.6 miles), are headquartered in San Antonio. Other employers include Methodist Stone Oak Hospital (1.9 miles), North Central Baptist Hospital (3.1 miles), and Army bases like Fort Sam Houston (16.5 miles), Randolph Air Force Base (15.7 miles), and the Lackland Air Force Base (27.7 miles).
