- 77-Room, Four-Story IHG-Branded Hotel Built in 2020
- Located within the Dallas-Fort Worth Metropolitan Statistical Area
- Ideal Position off Interstate 35, Offering Easy Access to a Variety of Businesses and Demand Generators
- 13.2 Miles from the Denton Airport and 39.4 Miles from the DFW International Airport
- Minimum-to-No PIP Anticipated at Trade
Investment Overview:
As the exclusive representative of the seller, Marcus & Millichap's National Hospitality Division is pleased to present for sale to qualified investors the Holiday Inn Express & Suites Denton - Sanger (‘Hotel’ or ‘Property’). The InterContinental Hotels Group (IHG)-branded Hotel is offered at $8,500,000 or $110,390 per key. The newly built Hotel began operations in June of 2020.
Sanger, Texas is located just north of Denton within the Dallas-Fort Worth (DFW) metropolitan statistical area. The DFW MSA ranks fourth in population within the United States and contains 24 Fortune 500 companies as well as six professional sports teams. The MSA’s current population is recorded at 6,397,000 and has led the country in nominal population growth in the last year. Denton County led the DFW metroplex in percentage growth and has recorded an increase of almost 140 percent since 2010.
The Hotel sits on approximately two acres off Interstate 35, recording over 55,700 vehicles per day, and offers easy access to major business and leisure demand generators in the vicinity. There are over 15 wedding venues in the area that generate significant weekend demand. The Walmart Supply Chain Training Academy at the Sanger Distribution Center, one of the Hotel’s largest anticipated business accounts, is located under 2.5 miles from the Property. Other nearby business demand generators include the University of North Texas (12 miles), Texas Woman’s University (11.5 miles), Peterbilt Motors Co Manufacturing (11.7 miles), Sally Beauty Corporate (15.8 miles), Tetra Pak (12.4 miles), ACME Brick Company (17.4 miles), Federal Emergency Management Agency (FEMA) (14.7 miles), Medical City Denton (16.3 miles) and Texas Health Presbyterian Hospital Denton (11.2 miles). The Noble Solar Project, a major solar power gridline, has begun construction 10 miles west of the Hotel and is expected to employ over 250 workers during the construction period and generate more than $26 million in tax revenue over the next 20 years.
Residents can enjoy a plethora of leisure demands in the vicinity such as the Texas Motor Speedway (25.5 miles), Water Works Park (12.3 miles), Sharkarosa Wildlife Ranch (13.4 miles), and WinStar World Casino (29.7 miles). Lake Ray Roberts, located less than 15 miles from the Property, hosts various annual fishing tournaments that attract visitors to the area year-round. The Denton Airport is 13.2 miles away and the larger DFW International Airport is 39.4 miles.
Currently, the Holiday Inn Express brand has close to 3,000 hotels with over 680 more in the pipeline. As a member of the IHG family, the Property will benefit from a superior reservation system, as well as the IHG Rewards loyalty Program. Additionally, the newly built Hotel will trade with minimum or no PIP and is ideal for any operator looking to keep operational expenses low throughout the initial investment hold period.
As part of an Economic Development Incentive Agreement between the City of Sanger and the Hotel, the Hotel shall receive back in the form of a grant 50 percent of Ad Valorem Taxes paid to the City of Sanger for 7 years, 75 percent of City Occupancy Taxes for years 1-3, and 50 percent of City Occupancy Taxes for years 4-7 from the date of opening.
Property Overview:
The Holiday Inn Express & Suites Denton – Sanger is a 77-room, 4-story, Hotel built in 2020. Well-equipped with various amenities, this upper-midscale Hotel offers spacious guest rooms that come furnished with a mini-refrigerator, microwave, flat-screen television, work desk with ergonomic chair, and lounge chair. Additionally, some common area amenities the Hotel has to offer consist of an outdoor pool, business center, fitness center, ice machines, and on-site laundry facilities. The Property provides daily complimentary hot breakfast to its guests.
Location Overview:
Sanger, Texas is a city located within of the Dallas–Fort Worth–Arlington metropolitan statistical area and near Denton, Texas. The Property is 24 miles northwest of Lewisville, Texas, and 10.5 miles north of Denton. The Holiday Inn Express & Suites Denton – Sanger is well positioned on 600 North Stemmons Street at the interchange of Chapman Drive and Interstate 35, with excellent visibility and accessibility off the freeway and curb appeal. This sought-after Hotel benefits from several industries in the region, including automotive, manufacturing, logistics, and healthcare. Peterbilt Motors and Texas Health Presbyterian Hospital, two of the region's largest employers, are prime revenue drivers for the surrounding area. Other corporations that employ a significant portion of the workforce include the Walmart Distribution Center, Jostens, Southwire/United Copper Industries, Acme Brick, ESAB/Victor Technologies, and Sally Beauty Company. The Texas Motor Speedway, a $250 million racetrack, has a crowd capacity of more than 190,000 and hosts several NASCAR events that attract more than $300 million in annual economic impact to the North Texas region. Revenue generators in the area like WaterWorks Park and WinStar World Casino increase nightly room demand for the Hotel. Extra demand drivers for the city include Lake Ray Roberts, Sharkarosa Wildlife Ranch, and the Denton Airport. The Hotel is a short drive to the University of North Texas (12.0 miles) and the Texas Woman's University (11.5 miles), each enrolling 40,796 and 16,441 students, respectfully.
