Call for Offers Due Date: April 13, 2021 at 5pm CST
- SHORT SALE
- 92-Room, Interior Corridor, Upper-Midscale Hotel Built in 2015
- Will be Sold Significantly Lower Than Replacement Cost
- Ability for Hands-On-Owner-Operator to decrease Expenses & Increase Net Operating Income
- Located in Eagle Ford Shale, one of Texas’ Largest Oil and Gas Deposits
- Ninety Minutes South of San Antonio, the Second Largest City in Texas
Investment Overview:
As the exclusive representative of the seller, Marcus & Millichap's National Hospitality Group is pleased to present for sale to qualified investors the Fairfield Inn & Suites Cotulla. The Marriott International branded hotel is priced on a Call for Offers basis.
This 92-room Hotel sits on 2.49 acres and represents the opportunity to acquire the fee simple interest in an asset located in an Oil and Gas market near the second-largest city in the state, San Antonio, Texas. The Hotel is located in Cotulla, Texas, approximately ninety minutes south of San Antonio along Interstate 35.
Cotulla, Texas, is located in Eagle Ford Shale and is known for housing the largest sand fracking facility in North America. Cotulla has experienced substantial growth directly correlated to Oil and Gas markets' recent activity, creating demand for lodging. This asset is located less than five miles from Chesapeake Energy, a company that has drilled over 164 wells within the Brazos Valley and Eagle Ford Shale. Other Oil and Gas operators, such as Regency Gas Services and GGG Oil Co, are located less than three miles from the Hotel. Contractual business from these companies can be lucrative, raising both revenues and occupancy.
This three-story, Hotel presents a new investor the chance to acquire this opportunistic asset within a significant Oil and Gas Market. Historically, the Hotel has made consistent gains in RevPAR Penetration year over year and is a top competitor in its competitive set. Operationally, the Hotel achieved $1,763,754 in Room Revenue and an EBITDA of $400,988 (For Year-End 2019). Poised to be a market leader, experienced hoteliers can incrementally increase NOI through better revenue management and cost control management strategies.
Fairfield Inn & Suites is an affiliate of Marriott International Inc., a leading global lodging company with more than 6,900 properties across 130 countries. It is a premier brand with longstanding and established brand loyalty, which translates to increased bookings and nightly reservations. The well-known franchise has been named in the 2018 Most Innovative Companies and 100 Best Companies to Work For 21 years running; Forbes has also included them in the 50 most engaging companies for 2017.
Current expenses include provisions for a four percent capital replacement reserve. The Hotel is offered fee simple, unencumbered by a management contract or debt.
Property Overview:
The 92-room Fairfield Inn & Suites by Marriott Cotulla is conveniently located along Interstate 35. The upper-midscale, three-story hotel features an outdoor pool, fitness center, business center, sundries shop, and picnic/barbeque area. Spacious guest rooms offer a flat-screen television, microwave, refrigerator, and separate seating area in suites.
Location Overview:
Cotulla is in the county seat of La Salle County, Texas located less than an hour and a half from San Antonio and approximately one hour from Laredo, Texas. This position in Southwest Texas in the heart of the Eagle Ford Shale and is located three miles from La Salle County Airport which has a $2.7million impact on the area. Local area amenities include the Brush Country Museum (1.7 miles), the Boys & Girls Club of Cotulla (1.4 miles), and the Horseshoe Bar (0.7 miles). The region has invested grant funds from the Texas Historical Commission by investing $3.5 million in renovating the La Salle County Courthouse. The La Salle County Fairgrounds is a leisure traveler's attraction and they host concerts and events year-round.
