- 75-Room, Interior Corridor, Midscale Hotel Built in 2010
- Less than Two Miles from Austin-Bergstrom International Airport
- Well Positioned Near the Highway 71 and 183 Interchange
- Significant Upside Potential through Revenue Management and Expense Control
- Operational Upside for Prospective Hands-On Owner-Operator Investor
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 Plus Austin Airport Inn & Suites. The hotel is priced at $7,100,000 or $94,667 price per room; this represents a 3.90X multiple on trailing 12-month room revenues. The hotel is an opportunistic property, constructed in 2010, and is located on Airport Commerce Drive near the Highway 71 and 183 interchange. The subject property is located in a real estate opportunity zone that can possibly provide substantial tax incentives to a new owner. Contact the agent for more details.
This three-story, 75-room hotel presents a new owner the opportunity to acquire a hospitality asset within the Austin-Round Rock MSA. The property, located less than two miles from the Austin-Bergstrom International Airport, has substantial upside through effective cost management and modest revenue growth. A new investor, looking to become an owner-operator, can acquire this advantageous property with significant upside potential. The hotel is well-equipped with an outdoor pool, conference space, and airport shuttle.
Operationally, this hotel is bringing in $1,819,163 in top-line revenue, resulting in a net operating income of approximately 19.9 percent of overall revenues; this equates to roughly $376,443 before debt service. The subject property, through an increase in the average daily rate to meet the market, adds the opportunity for a new owner to capitalize on a moderate increase in revenues. The expenses include provisions for a three percent management fee and four percent reserves for capital replacement. The hotel is offered fee simple, unencumbered by management and debt.
The Best Western Plus Austin Airport Inn & Suites is a 75-room, three-story, interior corridor hotel built in 2010. Well-equipped with numerous common area and guest room amenities, this limited-service upper midscale hotel offers spacious guest rooms that come furnished with a microwave, refrigerator, a work desk, lounge chair, separate seating area in select rooms, an MP3 docking station, and a flat-screen television with premium channels. Some splendid common area amenities the hotel has to offer consist of an outdoor pool, fitness center, business center, conferencing facility, and meeting rooms.
Austin, Texas is the capital and located in Travis County in the southeastern region of the state, 80 miles northeast of San Antonio, 160 miles west of Houston, and 200 miles south of Dallas/Fort Worth. The Best Western Plus Austin Airport is superbly positioned on 1805 Airport Commerce Drive, near Highway 71 and 183. In September of 2018 Austin-Bergstrom International Airport (3.9 miles) revealed a 20-year master plan and current concourse, gate expansions. The phase one is expected to take place in the next three years which includes the garage being torn down and replaced with a new main entrance. The expansion, starting near Gate 2, will increase the number of contact gates with boarding bridges at the airport from 24 to 33, a total of nine additional gat es. Last year the airport supported more than 13 million travelers and exponential growth is expected to continue. Other expansions are planned in the technology industry and have recently received financial support. Announced in December of 2018 Apple Incorporated is investing $1 billion to build a new campus in Austin which will be 133 acres with a workforce of 5,000 employees and the potential to add 10,000 employees. It was reported in the Austin Statesman that an online educational platform, Aceable (5.4 miles), raised $47 million for their expansion which was the largest funding round to date led by Connecticut-headquartered Sageview Capital and one of Austin’s largest venture capital deals of the year. WP Engine, an Austin based technology company which provides hosting for WordPress-built websites, announced at the beginning of 2018 they raised $250 million to generate its growth as well. With the city’s major employers and popular revenue generators in close proximity to the property, this sought after hotel benefits from many other key industries of the town which include professional scientific tech services, retail trade, and educational services. Dell Inc. and IBM, two of the city’s largest employers located approximately 16.4 and 17.7 miles from the hotel respectively, are prime revenue drivers for the surrounding area. Other major employers that are responsible for a significant portion of the work force include St. David’s South Austin Medical Center (5.8 miles), and Amazon Fullfillment Center (14.6 miles). Revenue generators in the area are the Texas Capital (5.9 miles), help bring additional revenue to the hotel through an increase in transient business. Extra demand drivers for the city include the Bullock Texas State History Museum (6.3 miles), the University of Texas at Austin (5.8 miles), and the Austin Convention Center (4.6 miles).