- Two-Story, 103-Room, Choice Hotels-Branded, Exterior-Corridor Hotel
- Located within Angelina County about 120 Miles Northeast of Houston and 170 Miles Southeast of Dallas
- Easily Accessible and Highly Visible from the Intersection of U.S. Highway 59
- Situated Under 10 Miles from Lufkin’s Largest Employers and Highest Value Businesses
- Approximately 13 Percent Cap Rate Offering at List Price
- TTM June 2023 Room Revenues Exceeded $1.7 Million while Maintaining a NOI Over $915,000
- Offered Fee-Simple, Unencumbered by Management Contracts or Existing Debt
INVESTMENT OVERVIEW
As the exclusive representative of the seller, Marcus & Millichap's Hospitality Division is pleased to present for sale to qualified investors the Quality Inn & Suites Lufkin (‘Hotel’ or ‘Property’) located in Lufkin, Texas. The Choice Hotels-branded Hotel is offered at $6,800,000 or $66,019 per key.
The Quality Inn & Suites Lufkin is a 103-room, two-story Hotel stationed at 4306 S 1st St in Lufkin, Texas, just off U.S. Highway 59. Various common area amenities at the Property include an outdoor pool, bar and restaurant (leased to third party), meeting space, laundry facility, bus parking, fitness center, and a three-bedroom owner's apartment.
Lufkin, Texas, is located in East Texas and is the county seat of Angelina County. Lufkin is located 120 miles Northeast of Houston and 170 miles Southeast of Dallas. The Hotel’s proximity to some of the city’s popular demand generators allows it to take full advantage of the prominent industries within the local economy. Nature enthusiasts can explore the scenic beauty of the Ellen Trout Zoo (8.0 miles), showcasing a diverse array of animals and providing a wonderful day out for families. The nearby Davy Crockett National Forest (19.4 miles) offers outdoor adventurers hiking trails, camping sites, and opportunities for birdwatching and nature exploration. Culture and history enthusiasts can explore the Naranjo Museum of Natural History (0.8 miles), offering fascinating insights into the world's past. Lufkin also hosts local events throughout the year, including the Texas State Forest Festival, a celebration of the region's timber heritage and cultural traditions, the Festival of Trees, and the Angelina Benefit Rodeo.
Lufkin's economy is marked by a diverse mix of industries that contribute to its growth and stability. The city hosts major employers, including Pilgrim’s Pride (5.6 miles), a poultry packaging facility, and Angelina College (1.1 miles), a community college that employs more than 1,000 people. The healthcare sector is strong with major medical centers such as CHI St. Luke's Health Memorial Hospital (4.5 miles) and Woodland Heights Medical Center (4.1 miles) providing essential services. Lufkin's strategic location has attracted investments in transportation and logistics, with the city serving as a crucial hub for distributing goods across the region. Lufkin’s Economic Development Corporation recently announced the approval of a $250 million investment from Jefferson Energy which is expected to bring more than 200 jobs to the city.
In the trailing twelve-month period ending in August 2023, the limited-service Hotel recorded room revenues of over $1.7 million and a net operating income of just over $915,000, or 49.1 percent as a percentage of total revenues, after a 3 percent management fee. As of June, the twelve-month average RevPAR in the Texas East Area hotel submarket was firmly in the green and climbing at an annual rate of 7.7 percent. This is a rare opportunity to acquire a hotel with over a 13 percent cap rate and strong in-place cash flow. At list price and an SBA 7A loan, one has the potential to generate 23 percent cash on cash returns post debt service.
