Ten-X Auction February 8, 2021 - February 10, 2021
- 148-Room, Interior Corridor, Midscale Hotel Built in 1985
- Hotel Sits on Over 5.3 Acres
- Underperforming the Market by 60% -- Offers Significant Upside to Increase Room Revenue to be Competitive with the Market
- Ability for Hands-On-Owner-Operator to Decrease Expenses & Increase Net Operating Income
- Three Miles from Goodfellow Air Force Base, One Mile from Shannon Medical Center
Investment Overview:
Marcus & Millichap's National Hospitality Group, as the exclusive representative of the seller, is pleased to present for sale to qualified investors the Red Lion Hotel San Angelo. The RLH Corporation-branded hotel is offered at $4,500,000 or $30,405 per key and sits on 5.37 acres within the Permian Basin.
Located 10 miles from San Angelo Regional Airport, the hotel is positioned to take advantage of business travel, leisure travel, and oil demand in the market. Red Lion Hotel San Angelo is the closest hospitality asset to the Shannon Medical Center. Additionally, with nearby Interstate travel exceeding 33,000 cars per day, the Red Lion is poised to capitalize on hotel demand in the area.
This six-story, 148-room hotel presents a new investor the chance to acquire this opportunistic asset within a major oil and gas market. Though struggling year-to-date in competitive set RevPAR, the hotel’s 38 percent RevPAR index offers ample further opportunity for rate escalation from a new owner; additionally, a deeper look at departmental expenses show current inefficiencies in operations with upside available to see an increase in EBITDA.
Popularly known as the Pearl of the Conchos, San Angelo houses an abundance of economic drivers and major employers that boost the hospitality market. Some notable major employers near the hotel include Shannon Medical Center, Ethicon Inc, and San Angelo Community Medical Center. Furthermore, the Fort Concho Museum, Concho River Walk, and Angelo State University are all a short drive away. Lastly, the property benefits greatly from its location to Goodfellow Air Force Base and the surrounding economic impact of the installation.
Current expenses include provisions for a 4 percent capital replacement reserve. The hotel is offered fee simple, unencumbered by a management contract or debt.
Property Overview:
The Red Lion Hotel San Angelo is a 147-room, six-story, midscale hotel built in 1985 with significant recent renovations. This RLH Corporation select-service hotel includes additional revenue generators including an on-site restaurant and five meeting rooms of 4,166 square feet of available event space. Other common area amenities include a seasonal pool and hot tub. The guest rooms feature a flat-screen television, microwave, refrigerator, pull out couch in select rooms, and two-room suites are available.
The RLH Corporation Red Lion Hotels is in over 300 MSAs and surrounding tertiary markets which has a branded Hello Rewards program. The corporation’s global footprint includes eight recognizable brands, over 1,100 properties, and over 75,000 rooms. Each brand experience has signature touchpoints that resonate with the guest.
Location Overview:
San Angelo, Texas, an ever-expanding city in the heart of Tom Green County, on the southwestern edge of the Edwards Plateau and the northeastern edge of the Chihuahuan Desert at the junction of the North and South Concho Rivers. Located 111 miles southeast of Midland and 207 miles northwest of Austin. The Red Lion Hotel San Angelo is positioned along 441 Rio Concho Drive. With the city's major employers and popular revenue generators nearby, this sought-after property has benefited from the key industries of the city including mining, quarrying, oil, and gas extraction. Goodfellow Airforce Base (6.0 miles) and Shannon Health System (1.0 miles), two of the city's largest employers approximately six and two miles from the hotel, are some of the prime revenue drivers for this location. Other key employers, that are responsible for a significant portion of the workforce, include San Angelo ISD, Angelo State University (1.3 miles), City of San Angelo, Sitel Corporation (8.8 miles), and Lone Star Beef Processors (3.7 miles). Additional demand drivers for the city include The International Water Lily Garden Civic League Park (1.7 miles), Fort Concho (1.0 miles), Miss Hatties Bordello Museum (0.6 miles), and San Angelo Museum of Fine Arts (0.8 miles).
