- 65-Room, Interior Corridor, Midscale Hotel Built in 2015
- Priced Significantly Below Replacement Cost at $32,308 Per Key
- Priced at 2.90X on August 2020 Trailing 12-Month Room Revenue
- The Average RevPAR for Competitive Hotels (Holiday Inn Express & Suites, Best Western Plus, La Quinta Inn & Suites, Microtel Inn & Suites) is $39.55
- At a $39.55 RevPAR, the Sleep Inn & Suites Would Achieve $938,323 in Room Revenue the First Year
- Absentee Owner Which Presents Upside for Hands-On Owner-Operator
Marcus & Millichap's National Hospitality Group, as an exclusive representative of the seller, is pleased to present for sale to qualified investors the Sleep Inn & Suites Jourdanton-Pleasanton. The Choice-branded hotel is priced at $2,100,000 or $32,308 per room; this represents an attractive 2.90 times multiple on August 2020 trailing 12-month room revenues. An opportunistic property, constructed in 2015, is located along the Highway 97 corridor, 40 miles south of San Antonio.
Priced above a desirable 10.52 percent capitalization rate, this three-story, 65-room hotel presents a new owner the opportunity to acquire a well-operated asset within the San Antonio and New Braunfels MSA. This five-year-old hospitality asset is being sold at a price significantly below replacement cost. Additionally, an investor, looking to act as an owner-operator, can maximize profits through a reduction in management costs for the property. The hotel is equipped with a fitness center, business center, and laundry facilities.
The expenses include provisions for a four percent reserve for capital replacement. The hotel is offered fee simple, unencumbered by a management contract and debt.
The Sleep Inn & Suites Jourdanton-Pleasanton is a 65-room, three-story, Choice International Hotels-branded property. The midscale-hotel offers a fitness center and laundry to all guests. Each room includes a flat-screen television, microwave, and refrigerator.
Jourdanton, Texas is located in the south-central part of the state and is positioned 40 miles south of the San Antonio City Center, part of the Metropolitan Statistical Area (MSA). The hotel is located directly off Highway 97 and near Interstate 37 which is a direct channel to San Antonio and its attractions. The region hosts the Atascosa County Livestock Show, and in 2020 they raised more than $900,000. Another room demand generator is the city's high school athletics program and recently announced by the University Interscholastic League 4A or below will be allowed to begin their competitions in August 2020.