- Three-Story, 68-Room, Upper-Midscale, Hilton-Branded Hotel in Victoria Texas
- Expected to Trade Below Replacement Cost
- Two Hour Drive from Major Texas Hubs like Corpus Christi, Houston, San Antonio, and Austin
- Highway Location Providing High Visibility and Swift Access to Major Business and Leisure Demand Generators
- Nearby Industrial Employers Include Formosa Plastics Corp, Inteplast Group, Dow, Invista, Caterpillar, and Alcoa
- Land in Front of Hotel Included within Property Line; Presents Another Opportunity to Develop into a Small Retail Space
- Potential Value-Add Opportunity to Boost RevPAR and Market Penetration through Operational Initiative and Aggressive Revenue Management Strategies
- Revenue Growth Expected with Completion of PIP
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 Hampton Inn Victoria (‘Hotel’ or ‘Property’). The Hilton-branded Hotel is offered at $5,750,000 or $84,559 per key.
The Hampton Inn is a 68-room, three-story, upper-midscale Hotel located at 7006 North Navarro Street in Victoria, Texas. Navarro Street offers direct access to Zac Lentz Pkwy, a major thoroughfare that connects Highway 77, Highway 87, and Highway 59. The Property sits on a 2.14-acre lot, providing excellent visibility to transient business and allowing an operator to cut back on marketing expenses. With an outdoor pool, exercise room, business center, and 925 square feet of meeting/event space, the upper-midscale Hotel is poised to attract business and leisure visitors.
Victoria, Texas is situated 30 miles from the Gulf of Mexico and is a two-hour drive from Corpus Christi, Houston, San Antonio, and Austin. The city's major industries include a mix of education, health, retail, agriculture, and industry. Its access to major highways, the Victoria Regional Airport, railway terminals, the shallow draft Port of Victoria, and the deep-water Port of Port Lavaca-Point Comfort help to sustain a healthy environment for business. The Hotel benefits from major industrial employers in the region like Formosa Plastics Corp, Inteplast Group, Dow, Invista, Caterpillar, and Alcoa. Additionally, downtown Victoria, Texas Zoo, Riverside Park’s 15 baseball fields, Guadalupe River, Lake Texana, Coleto Lake, Port O’Conner, and Victoria Mall bring customer supply to the market.
In 2021, the Hotel recorded over $1.23 million in room revenue and net operating income of $263.5 thousand, which translates to 20.8 percent of total income, after a four percent capital replacement reserve and three percent management fee. RevPAR fell below the STR-defined competitive set, presenting a potential opportunity to further revenues and increase market penetration through operational initiatives and aggressive revenue management strategies.
