As the exclusive representative of the seller, Marcus & Millichap's Hospitality Division is pleased to present for sale to qualified investors the Candlewood Suites Bay City (‘Hotel’ or ‘Property’) located in Bay City, Texas. The IHG-branded Hotel is offered on a “request for offers” basis. Please reach out to the listing agent for more information.
The Candlewood Suites Bay City is a 76-room, four-story Hotel stationed at 5800 7th Street in Bay City, Texas, just off Texas State Highway 35. Various common area amenities at the Property include a fitness center, laundry facility, outdoor gazebo grill, convenience store, and business center. Bay City, Texas, is a delightful city located in the southeastern part of the state and serves as the county seat of Matagorda County. Nestled along the Colorado River, Bay City offers a variety of popular activities and attractions for both locals and visitors. The Hotels proximity to some of the city’s popular demand generators allows it to take full advantage of the prominent industries within the local economy. Nature lovers can explore the serene beauty of the Matagorda Bay Nature Park, which features coastal marshes, hiking trails, and opportunities for birdwatching and fishing. Golf enthusiasts can tee off at the picturesque Rio Colorado Golf Course (7.7 miles), offering a challenging and scenic experience for players of all skill levels. Families can enjoy a day of fun at Le Tulle Park (5.8 miles), complete with playgrounds, sports fields, and picnic areas. The city's proximity to the Gulf of Mexico makes it a haven for water enthusiasts, with opportunities for boating, kayaking, and enjoying sun-soaked days on the beach. Bay City hosts local events and festivals, including the Matagorda County Fair and the Bay City Art Walk, which celebrate the community's vibrant culture and creativity.
Bay City's economy is fueled by various industries, contributing to its growth and stability. The city hosts major employers, such as ExxonMobil, a global energy company with a significant presence in the area, Oxea Corporation, a leading producer of oxo intermediates and derivatives, and Tenaris, a leading global manufacturer of steel pipes for the energy industry. These companies provide substantial job opportunities and contribute to the local economy. In recent years, the city has seen investments in infrastructure development, including improvements to roads and utilities, attracting businesses, and supporting community growth.
In the trailing twelve-month period ending in June 2023, the extended-stay Hotel recorded room revenues of over $1.5 million and a net operating income just over $347,000 or 22.5 percent as a percentage of total revenues, after a 4 percent capital replacement reserve and 3 percent management fee. A prospective buyer should be able to capitalize on the anticipated increase in RevPAR through better revenue management, not only benefiting from increased market share but also higher NOI flow-through.
INVESTMENT HIGHLIGHTS
- Four-Story, 76-Room, Extended-Stay, Interior- Corridor, IHG-Branded Hotel
- Easily Accessible and Highly Visible from Texas State Highway 35
- Situated Near Bay City’s Largest Employers and Highest Value Businesses Including Tenaris, Exxon Mobil, and Oxea Corporation
- TTM June 2023 Room Revenues Exceeded $1.5 Million while Maintaining a NOI Over $347,000
- Offered Fee-Simple, Unencumbered by Management Contracts or Existing Debt
