- Three-Story, 76-Room, Upper-Midscale, Limited-Service Hotel Built in 2008
- Highly Visible and Easily Accessible from Highway 77
- Strategic Location near Major Corporations and Leisure Demand Generators
- Strong Room Revenues Over $2 Million Through the Twelve-Month Period Ending September 2021
- Ideal Expense Ratios Leading to a Healthy Net Operating Income Averaging Around 30 Percent of Gross Income
Investment 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 & Suites (‘Hotel’ or ‘Property’) in Victoria, Texas. The InterContinental Hotels Group-branded Hotel is offered at $6,500,000 or $85,526 per key.
The Holiday Inn Express Victoria is a 76-room, 3-story Hotel stationed at 111 Huvar Street, near the busy intersection of Highway 77 and Loop 463. This Hotel features an outdoor pool and spa, business center, exercise room, and on-site laundry services. Spacious guest rooms offer a flat-screen television, a work desk, mini-refrigerator, and microwave.
Victoria, Texas is located 30 miles from the Gulf of Mexico and equal distance from Corpus Christi, Houston, San Antonio, and Austin. Victoria’s prime location promotes a healthy economy, which is supported by education, health, retail, agriculture, and industry sectors. The cities’ healthy environment for businesses is because of the major highways, Victoria Regional Airport (6.8 miles), railway terminals, Port of Victoria (13.3 miles), and Port of Port Lavaca (31.3 miles), which help local businesses connect to larger economic hubs. The Hotel benefits from its proximity to businesses such as Baker Hughes (2.3 miles), BHP (3.8 miles), Caterpillar (6.3 miles), Dow Chemical (13.5 miles), DuPont (14.3 miles), Exterran (5.8 miles), Formosa Plastics (42.2 miles), Halliburton (4.5 miles), Kinder Morgan (12.6 miles), Invista-Koch (13.5 miles), and Performance Food Group (4.9 miles). Room demand can further be attributed to DeTar Hospital and Citizens Medical Center, which are both under five miles from the Property.
The limited-service Hotel’s operations have been exceptional. The Hotel produced over $26,750 in room revenue per room over the trailing twelve-month period ending September 2021, which equates to more than $2 million in total room revenues. In the same period, net operating income was recorded at a healthy $738 thousand or 36.3 percent of gross revenues, after a four percent reserve for capital replacement and a three percent management fee reserve. The buyer will be responsible for any fees or expenses charged by the franchisor for completing the Formula Blue Property Improvement Plan.
