- 83-Room, Upper Midscale, Limited-Service, Marriott Hotel Built in 2009
- Renovated in 2018/19; Long-Term License
- Less than One Mile from Central Mall
- Priced Significantly Below Replacement Cost at $66,265 per Key
- Winner of TripAdvisor Certificate of Excellence Hall of Fame Award for Five Years in a Row
- Well-Positioned with Excellent Visibility from Interstate 30
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 Fairfield Inn & Suites Texarkana. The Marriott-branded hotel is priced at $5,500,000 or $66,265 price per room, significantly below replacement cost. An opportunistic property, constructed in 2009 and fully renovated 2018/2019, is located along the Interstate 30 corridor, near the interchange with Interstate 369.
This four-story, 83-room hotel presents a new owner the opportunity to acquire a completely renovated Marriott-branded asset with a long-term license within the Texarkana MSA. This property just came out of a full renovation in April 2019. During renovation, it lost some business and revenue due to rooms being out of order for repairs and updates. The hotel is now starting to ramp back up again and should be able to achieve its full potential market share within the next 12 to 18 months. The hotel is well-equipped with an indoor pool, fitness center, and a meeting room.
Despite renovations in 2018, operationally the hotel achieved $1.45 million in room revenue, resulting in a net operating income of roughly 17 percent of total revenue; this equates to about $251,598 before debt service. The property has been consistently underperforming the competitive set with RevPAR index of 85 percent, adding additional upside potential for a new owner to meet the market. Focusing on increasing the hotel's operational efficiency, a new owner can see a significant boost in hotel performance, seizing a larger portion of top-line revenues. Furthermore, the hotel is perfectly positioned in an Opportunity Zone and can provide upside to a potential owner in a 1031 exchange. Opportunity Zones are a new community development program established by Congress to encourage long-term investments in low-income urban and rural communities nationwide. The Opportunity Zones program provides a tax incentive for investors to reinvest their unrealized capital gains into Opportunity Funds that are dedicated to investing in Opportunity Zones, designated by the chief executives of every U.S. state and territory.
The investment property is positioned in close proximity to diverse demand generators and multiple states. The Dallas/Fort Worth MSA is approximately 2.5 hours and Shreveport, Louisiana is approximately 1.25 hours from the hotel.
The expenses include provisions for a three percent management fee and four percent reserve for capital replacement. The hotel is offered fee simple, unencumbered by a management contract and debt.
The Marriott-branded Fairfield Inn & Suites Texarkana is an 83-room, four-story investment property built in 2009. There are 25 suites and each room comes furnished with a flat-screen television, microwave, and refrigerator. The key amenities include a fitness center, indoor saltwater pool, business center, and a 276-square foot event space.
Texarkana, Texas is located in the northeastern part of the state and is a city that occupies two states including Arkansas. The Fairfield Inn & Suites Texarkana is centrally located in the city center on Interstate 30 at 4209 Mall Drive. The region is home to diverse industries and demand generators. In 2018, Lionchase Holdings Incorporated announced plans to build a $20 plus million Frigitek facility at TexAmericas (10.3 miles). The development will be a 200,000-square foot cold storage property which is anticipated to attract additional leads from food processors, manufacturers, and distributors to locate to the region. The TexAmericas Center is 12,000 development-ready acres, and approximately three million square feet of commercial and industrial industries that services four states. The Red River Army Depot (17.8 miles) also has a presence in the region and occupies 15,375 acres, houses more than 1,400 buildings and is host to 16 tenant organization. In addition, Cooper Tire & Rubber Company (7.4 miles) is a manufacturing facility that is worldwide and reported $2.81 billion in revenues in 2018. Texas A&M Texarkana (3.7 miles) houses international students from more than 20 countries with an enrollment of over 1600 students. The university hosts a multitude of scholastic events, community gatherings, and open houses for future students. Webb Field, the Texarkana Regional Airport (7.2 miles), provides commercial jet service to DFW airport to the four-state region.