- 154-Room, Six-Story, Upper Upscale Hotel
- Offered at a 3.38 RRM and a 9% Cap Rate TTM December 2018
- Generating $7.7 Million Gross Revenue
- High Quality Concrete Block & Plank Construction
- Hotel RevPAR Penetration of 166% Compared to the Market Competitive Set
- Operating as the Premier Hotel in the Market Competitive Set
- Laredo is the Largest Inland Port in the US, and Nuevo Laredo is the Largest in Latin America
Marcus & Millichap, as an exclusive representative of the Seller, is pleased to present for sale to qualified investors the 3.86-acre Embassy Suites by Hilton in Laredo, Texas. The Hilton-branded hotel is an upper-upscale Embassy Suites consisting of 154 rooms. This offering is priced at $22,750,000 or $147,727 price per room; this represents a 3.38X multiple on trailing 12-month room revenues. An established property, constructed in 2005, is located just off Interstate 35 in one of the largest shopping areas along the Texas-Mexico border. This six-story, full-service hotel presents a new owner the opportunity to acquire a fully stabilized hospitality asset.
Operationally, the hotel is bringing in upwards of $6.7 million in room revenue and another $892 thousand in food and beverage revenue while effectively operating with a net operating income of approximately 26.5% of overall revenues; this equates to over $2 million of NOI aggregate. The hotel is forecasted to experience another very successful operating year in 2018, running at an average occupancy of approximately 85 percent and healthy year-over-year RevPAR growth. Currently generating RevPAR of approximately $120, the hotel offers strong accretive earnings for the next investor. The subject property’s above market RevPAR has allowed the hotel to experience higher than average returns and become the leading property in the market.
The expenses include provisions for a 3 percent management fee and 4 percent reserves for capital replacement. The hotel is offered fee simple, unencumbered by management and debt.
The Embassy Suites by Hilton in Laredo is a 154-room, full-service, upper-upscale hotel located in Laredo, Texas. Built in 2005, this six-story hotel is concrete block and plank construction. The common area amenities include an indoor pool & spa tub, fitness center, business center, outdoor barbecue facilities, meeting rooms, a rentable 3,629-square-foot conference space, convenience store, bar/lounge, airport shuttle, and an Ambassador Steakhouse on-site. The guest room amenities comprise of a flat-screen TV, microwave, refrigerator, work desk, sofa beds with a lounge area, and Wi-Fi.
Location Overview:Laredo, Texas is a city located on the southern border of Texas and Mexico and is in Webb County. The city is approximately 150 miles west of Corpus Christi and south of San Antonio. The Embassy Suites Laredo is off Interstate 35 on Calle Del Norte Drive only a few miles from Downtown Laredo. Laredo is expanding including the construction of a central convention center, making it the only convention center with a 150-mile radius, set to open in September 2020. The new design will be a mix of historical and contemporary structures capable of handling 206 10x10-foot exhibit booths with 500 parking spaces. Laredo Energy VI, LP announced at the end of 2018 that will be executing a 20+ well drilling program in the Eagle Ford shale over the next 18 months increasing the already 150 operation wells across approximately 72,000 acres in Webb County. Majestic Realty Co. will develop a 423,380-square-foot warehouse within Port Grande, a 1,992-acre master-planned business park. The project represents Phase II of development and follows the delivery of a 366,080-square-foot building that still has 200,000 square feet available for lease. Laredo City Council voted to create a tax increment reinvestment zone, or TRIZ, with Killam Development for the Coves at Winfield, a 1,000-acre mixed-use development that will include commercial space, homes, apartments, and recreational space 3.3 miles from the hotel site. The hotel is located near many major demand generators including the Mall Del Norte (0.1 miles), San Augustin Plaza (2.0 miles), Laredo International Airport (2.4 miles), Lake Casa Blanca International State Park (4.9 miles), Texas A&M International University (3.7 miles), and the Outlet Shoppes at Laredo (3.8 miles). A few nearby historical museums include the Imaginarium of South Texas (0.1 miles) and Republic of the Rio Grande Museum (3.9 miles). The city’s top three employers are Laredo Medical Center (2.8 miles), HEB Grocery (4.2 miles), and Walmart (1.5 miles) with a store located across Interstate 35.