Portfolio Offering - Overview
As the exclusive representative of the seller, Marcus & Millichap’s National Hospitality Division is pleased to present for sale to qualified investors the 180-room Two Property Portfolio in Denton, Texas (‘Hotels’, ‘Properties’, or ‘Portfolio’) including the Holiday Inn Express & Suites Denton-UNT-TWU and the La Quinta Inn & Suites Denton-University Drive.
The Portfolio provides a diverse mix of well-positioned assets with exceptional brands within Denton, Texas. Denton is located just 40 miles northwest of Dallas, Texas. Over 85 percent of rooms were occupied through the trailing twelve-month period ending in July 2022 throughout the Portfolio, resulting in more than $5.93 million of total revenues and a net operating income of over $2 million. Collectively, the Portfolio benefits from strong in-place cash flow, limited new supply, and best-in-class brand affiliation. The Portfolio of high-quality Hotels presents the opportunity for potential investors to acquire cash-flowing, cap-rate-based acquisitions, and scale immediately in the highly desirable Dallas-Fort Worth Metropolitan Area while capitalizing on RevPAR growth trends that are expected to continue into the future. Additionally, the Properties are located across from each other, providing operational economies of scale to a prospective buyer.
Each Hotel maintains a premium brand affiliation with InterContinental Hotels Group and Wyndham Hotels & Resorts. These brands are amongst the most trusted in the hospitality industry and offer great benefits for owners and guests alike, such as powerful reservation systems and strong brand loyalty. Both Properties recently completed a PIP, the La Quinta Inn & Suites Denton - University Drive in 2020/2021, and the Holiday Inn Express & Suites Denton - UNT – TWU in 2020.
La Quinta Inn & Suites Denton – University Drive
High-Quality Asset: The La Quinta Inn & Suites is an upper-midscale Wyndham Hotels-branded Hotel featuring 88 spacious guest rooms and several amenities including an on-site fitness center, laundry facility, 24-hour business center, 360 square feet of meeting space, and an indoor heated pool and whirlpool. Additionally, the Hotel completed a PIP in 2020/2021.
Prime Highway Position: Located off Interstate 35, the Property benefits from its accessibility to various local and regional demand generators. The Property is minutes away from the University of North Texas, Texas Woman’s College, Lake Lewisville, Denton Water Works Park, Diamond T Ranch & Arena, Historic Downtown Denton, and Rayzor Ranch Shopping. Nearby businesses include FEMA, Peterbilt, Schlumberger, Tetra Pak, City of Denton, Medical City Denton, and Texas Health Presbyterian Hospital Denton.
Excellent In-Place Operations: The Property recorded a twelve-month July 2022 RevPAR of $91.71, achieving revenues over $3 million, and is trending to outperform its competitive market set. In the same period, net operating income, after a four percent FF&E reserve and three percent management fee, was over $1.13 million, or 37.9 percent of gross revenues.
Wyndham Hotels & Resorts-Branded Asset: The Hotel maintains brand affiliation with Wyndham Hotels & Resorts, one of the most visited brands, and greatly benefits from the Wyndham Rewards loyalty program. With over 8,900 hotels spanning through more than 95 countries, Wyndham is the largest franchiser in hospitality.
Investment Highlights
- 88-Room, Upper-Midscale, Limited-Service, Wyndham Hotels & Resorts Branded Asset
- Located off Interstate 35, Providing Easy Accessibility to Demand Generators such as The University of North Texas, Texas Woman’s College, Lake Lewisville, Denton Water Works Park, Diamond T Ranch & Arena, NorthStar Dragway, Historic Downtown Denton, and Rayzor Ranch Shopping
- Twelve-Month Revenues over $3 Million Through July 2022
- Consistent Year-Over-Year RevPAR growth in Dallas-Fort Worth MSA
Holiday Inn Express & Suites Denton – UNT - TWU
High-Quality Asset: The Holiday Inn Express & Suites is an upper-midscale IHG-branded Hotel featuring 92 spacious guest rooms and several amenities including an on-site fitness center, laundry facility, 24-hour business center, 1,400 square feet of meeting space, and an indoor heated pool and whirlpool. Additionally, the Hotel completed a PIP in 2020.
Prime Highway Position: Located off Interstate 35, the Property benefits from its accessibility to various local and regional demand generators. The Property is minutes away from the University of North Texas, Texas Woman’s College, Lake Lewisville, Denton Water Works Park, Diamond T Ranch & Arena, Historic Downtown Denton, and Rayzor Ranch Shopping. Nearby businesses include FEMA, Peterbilt, Schlumberger, Tetra Pak, City of Denton, Medical City Denton, and Texas Health Presbyterian Hospital Denton.
Excellent In-Place Operations: The Property recorded a twelve-month July 2022 RevPAR of $85.97, achieving revenues over $2.93 million, and is trending to outperform its competitive market set. In the same period, net operating income, after a four percent FF&E reserve and three percent management fee, was over $934 thousand or 31.9 percent of gross revenues.
InterContinental Hotels Group-Branded Asset: The Hotel maintains brand affiliation with InterContinental Hotels Group (IHG), one of the trusted names in hospitality, and greatly benefits from the IHG Rewards loyalty program. For over 75 years, IHG has continued its leadership and brand recognition amongst travelers, owners, and franchisees. The Hotel benefits from its brand affiliation and its reservation system, driving increased demand and ultimately increased overall profitability.
Investment Highlights
- 92-Room, Upper-Midscale, Limited-Service, InterContinental Hotel Group Branded Asset
- Located off Interstate 35, Providing Easy Accessibility to Demand Generators such as The University of North Texas, Texas Woman’s College, Lake Lewisville, Denton Water Works Park, Diamond T Ranch & Arena, NorthStar Dragway, Historic Downtown Denton, and Rayzor Ranch Shopping
- Twelve-Month Revenues over $2.93 Million Through July 2022
- Consistent Year-Over-Year RevPAR growth in Dallas-Fort Worth MSA
