- 61-Room, Exterior Corridor, Midscale Hotel
- Offered at a 2.30 RRM, 19.1% Cap Rate
- Less than Two Miles from Del Rio International Airport
- Priced Significantly Below Replacement Cost at $53,279 Per Key
- Best Western PIP Recently Completed
- Strong Positive Cash Flows of Approximately $621,239 or 44 Percent of Total Revenue
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 Best Western Inn of Del Rio. The Best Western-branded hotel is priced at $3,250,000 or $53,279 price per room; this represents a 2.30 times multiple on year-end 2019 room revenues. An upward-trending hotel, constructed in 1984, is located near the Del Rio International Airport.
Priced at an attractive 19.1 percent capitalization rate, this two-story, 61-room hotel presents a new owner the opportunity to acquire an upward trending asset with strong positive cash flows. This well-maintained hospitality asset is being sold at a price below replacement cost. Current ownership recently completed Best Western PIP. The hotel is well-equipped with an outdoor pool, fitness center, and laundry facilities.
Operationally, the hotel achieved $1,411,410 in room revenue, resulting in a net operating income of approximately 44 percent of total revenue; this translates to about $621,239 before debt service. The property has outperformed the competitive set in ADR, reaching a penetration index of 95 percent. The subject property has experienced over 96 percent growth in RevPAR since 2017.
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.
Property Overview:
The Best Western Inn is a 61-room, two-story hotel, that was built in 1984. The midscale hotel’s guest rooms come furnished with a sofa bed, microwave, and refrigerator. The common area amenities include a RV/bus/ truck parking area, computer station, laundry facilities, and an outdoor pool.
Location Overview:
Centrally located off the main highway in the heart of Del Rio, Texas the Best Western Inn hotel is near area attractions such as the Whitehead Memorial Museum, San Felipe Springs, Val Verde Winery, and Amistad National Recreation Center, the city of Ciudad Acuna (in Mexico). The Sul Ross University is also in the region and regularly hosts scholastic events throughout the year. Laughlin Air Force Base is less than ten miles away, and the 47th Flying Training Wing Maintenance Directorate furnishes quality aircraft, support, and services which with their aircraft, support equipment, and facilities the value is more than $1.3 billion. The hotel is situated for easy access to Mexico and many local businesses.
