- Three-Story, 82-Room, Third-Party Managed, Wyndham Hotels & Resorts-Branded Hotel
- Excellent Highway Accessibility and Visibility from Highway 181, the Highest Trafficked North-South Thoroughfare that Connects San Antonio to Corpus Christi
- Situated Under 16 Miles from W B Burris Airport and 2 Miles from Kenedy Regional Airport
- 2022 Room Revenues Exceeded $1.37 Million while Maintaining an NOI Over $390 Thousand
- Significant Value Add Opportunity for New Owner to Increase RevPAR and NOI Through Revenue Management Strategies
- Offered Fee Simple, Unencumbered by Management Contract or Debt
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 Microtel Inn & Suites by Wyndham Kenedy (‘Hotel’ or ‘Property’) located in Kenedy, Texas. The Wyndham Hotels & Resorts-branded Hotel is offered at $4,400,000 or $53,659 per key.
The Microtel Inn & Suites by Wyndham Kenedy is an 82-room, three story Hotel stationed at 333 N Sunset Strip Street in Kenedy, Texas. Various common area amenities at the Property include an indoor heated pool with whirlpool hot tub, breakfast area, fitness center, meeting space, laundry facility, and business center.
Kenedy is positioned in Karnes County, Texas, roughly 60 miles southeast of San Antonio. The city boasts several attractions in its vicinity, including Joe Gulley Park, Karnes County Museum, WOW Longhorn Museum, and the Helena Ghost Town. These places offer tourists opportunities to engage in thrilling activities. The former residence of Vice President John Nance Garner, the John Nance Garner Museum, is another popular tourist destination in the city. Additionally, the city is served by two airports: W B Burris Airport and Kenedy Regional Airport, which are located approximately 16 miles and two miles away from the Hotel, respectively.
In 2022, the Hotel recorded room revenues of over $1.37 million and a net operating income just over $390 thousand, or 28.2 percent as a percentage of total revenues, after a 4 percent capital replacement reserve. Furthermore, the subject property has achieved an average room revenue of more than $1.2 million over the past 5 year while managed by a third party. As of January, twelve-month average RevPAR in the Texas South Area hotel submarket was firmly in the green and climbing at an annual rate of 5.4 percent. This growth exceeded the already impressive 3.1 percent increase observed in the broader Texas South market. There are 120 rooms spread between two projects underway in the Texas South Area submarket, representing a 0.5 percent expansion of the existing inventory. This marks a continuation of new development in the submarket with a handful of projects containing around 300 total rooms delivered within the past three years. A prospective buyer should be able to capitalize on the anticipated increase in RevPAR from better revenue management, not only benefiting from increased market share but also higher NOI flow-through.
