- 237-room, Upscale, Full-service Hotel
- Located Four Miles from the Corpus Christi International Airport
- Priced Significantly Below Replacement Cost at $56,962 Per Key
- Exxon Mobil is Completing the World's Largest Petrochemical Plant in the Region
- Global Trade Magazine Ranked Corpus Christi as a Top City for Best Infrastructure
- CMBS Loan Assumption (See Investment Overview)
- Priced at a 10.36 Percent CAP Rate with Reserves
Marcus and Millichap's National Hospitality Group, as an exclusive representative of the seller, is pleased to present for sale to qualified investors the Holiday Inn Corpus Christi Airport & Convention Center. The hotel is priced at $13,500,000 or $56,962 price per room; this represents a 2.69 room revenue multiplier on projected room revenues.
Priced at an attractive 10.36 percent capitalization rate, this six-story, 237-room hotel presents a new owner the opportunity to acquire a full-service hotel with on-site revenue generators. Operationally, this hotel is projected to achieve upwards of $5,030,000 in room revenue with an estimated net operating income of $1,400,000 or approximately 24.3 percent of gross revenue according to the trailing 12-month August 2018.
The expenses include provisions for a four percent reserves for capital replacement and a three percent reserves for management fees. The hotel is offered fee simple, unencumbered by management. Also, there is a CMBS loan assumption of approximately $9,400,000 at a 5.05 percent interest rate, and approximately a $58,750 monthly payment. The loan is expected to mature by October 6, 2025.
The property, originally constructed in 1982, is located on 5549 Leopard Street and provides great visibility for transient business commuting through the Corpus Christi International Airport. The hotel is well equipped and offers travelers conference space, meeting rooms, and the Atrium Cafe, an on-site restaurant and bar.
The region boasts significant upside potential with Exxon Mobil expecting to complete the world's largest petrochemical plant, costing over $9,300,000,000, in 2024. The 1,400-acre project is expected to create over 4,100 temporary jobs, 600 direct and 3,500 indirect jobs during the construction process. The plant will create over 500 fulltime direct jobs and is expected to produce up to 1,800,000 metric tons of ethylene/polyethylene, the materials used to make plastic, each year.
The Holiday Inn Corpus Christi Airport & Convention Center is a 237-room, six-story, interior corridor hotel built in 1982. Well-equipped with numerous common area and guest room amenities, this full-service upscale hotel offers spacious guest rooms that come furnished with a microwave, refrigerator, work desk, a pillow menu, and a flat-screen television with premium channels. Some splendid common area amenities the hotel has to offer consist of an indoor pool and spa tub, fitness facilities, business center, conference space, meeting rooms, and the Atrium Cafe, an on-site restaurant and bar.
Corpus Christi, Texas is a city located in Nueces County in the southeastern region of the state, 140 miles southeast of San Antonio and 180 miles north of South Padre Island. The Holiday Inn Corpus Christi Airport & Convention Center is superbly positioned on Leopard Street, near Highway 358 and Hereford Road. With the city's major employers and popular revenue generators in close proximity to the property, this sought after hotel benefits from many key industries of the town which include healthcare and social assistance, accommodation and food service, and retail trade. Del Mar College and CHRISTUS Spohn Health System, two of the city's largest employers located approximately 4.9 and 5.6 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 workforce include HE-B Grocery (2.5 miles), Corpus Christi Medical Center Doctors Regional (8.1 miles), and the Naval Air Station Corpus Christi (19.1 miles). Revenue generators in the area, like Corpus Christi International Airport (4.1 miles) and USS Lexington (7.1 miles) help bring additional revenue to the hotel through an increase in transient business. Extra demand drivers for the city include the Selena Museum (0.3 miles), Hurricane Alley Waterpark (4.7 miles), and the Texas State Aquarium (7.2 miles).