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Hotel-Motel

Fairfield Inn & Suites Austin San Marcos

1250 N Interstate 35 Frontage Rd, San Marcos, TX 78666

Listing Price: $13,500,000

Cap Rate
5.58%
Number of Rooms
108
RevPAR
$68
Gross SF
120,661
Price/Room
$125,000
RRM
5.07
Price/Gross SF
$111.88
Year Built
2015

Investment Overview

High-Quality Asset in Exceptional Condition: The Fairfield Inn & Suites Austin San Marcos is an upper-midscale Hotel built in 2015. The Hotel features 108 spacious guest rooms and several amenities such as 1,072 square feet of meeting/event space, an outdoor pool, business center, laundry facilities, and a fitness center. Prime Location with Easy Access to Market Demand Generators: The Property is positioned off Interstate 35, offering excellent visibility and accessibility to major demand generators in the vicinity. McCoy’s Building Supply’s Headquarters are less than half a mile from the Hotel, making the Fairfield Inn & Suites the closest Property to the major lumber, roofing supplies, and building material retailer office. Other Business demand can be attributed to Berry Aviation Inc. (4.8 miles), Central Texas Medical Center (4.8 miles), Amazon Fulfillment Center (6.6 miles), and Texas State University (2.6 miles). Tanger and Premium Outlets (7.5 miles), San Marcos River (3.8 miles), Wonder World Cave and Park (4.5 miles), Texas State University Sports Complex (1.6 miles), and the San Marcos downtown (3.7 miles) bring leisure travelers to the area. San Marcos Growth and Nearby Development: San Marcos, Texas is the county seat of Hays County and about 30 miles south of Austin and 50 miles northwest of San Antonio, providing the ability to reach two of Texas’ largest cities within minutes. As Austin continues rapid expansion, San Marcos reaps large amounts of capital pouring into nearby developments. St. David’s Healthcare recently announced a $1 billion expansion including $434 million coming to south Austin and Kyle and a new $1 billion mixed-use development, with as much as 3 million square feet of office, residential, and retail space, that will begin construction in late 2022 or early 2023 in South Austin. Additionally, Hays County led the country in population growth with a 53 percent increase from 2010-2020 according to U.S. Census Data. Significant Top-Line Revenue and Operating Income: The Property achieved revenues above $2.66 million through 2021, and a healthy operating income of over $753 thousand or 27.2 percent of total revenue, after a 4 percent capital replacement reserve and 3 percent management fee. The Fairfield Inn & Suites by Marriott Brand: With more than 1,169 Fairfield Inn & Suites and an additional 387 more in the pipeline, the brand offers a hotel design experience that is unique from its competitors. Marriott International is a global category leader that remains simple to build and simple to operate. The Property greatly benefits from their Marriott International Brand Affiliation, which provides the world’s largest travel loyalty program, Marriott Bonvoy. Marriott’s global platform has over 160 million users and helps drive top-line revenue and bottom-line cost savings. Fee-Simple Interest: The Hotel presents an opportunity to acquire a well-branded, upper-midscale asset as fee-simple.

Investment Highlights

  • Five-Story, 108-Room, Upper-Midscale Hotel Built in 2015
  • Ideal Location Offering Easy Access to Major Demand Generators Including McCoy's Building Supply Headquarters, Texas State University, Berry Aviation Inc., and Central Texas Medical Center
  • Exceptional Hotel Operations Recording $2.7 Million in Revenues and a Net Operating Income of over 27 Percent of Gross Revenues
  • Offered Fee Simple, Unencumbered by Management Contract or Debt

Exclusively Listed By

Hotel-Motel

Fairfield Inn & Suites Austin San Marcos

Listing Price: $13,500,000

Cap Rate
5.58%
Number of Rooms
108
RevPAR
$68
Gross SF
120,661
Price/Room
$125,000
RRM
5.07
Price/Gross SF
$111.88
Year Built
2015

Investment Highlights

  • Five-Story, 108-Room, Upper-Midscale Hotel Built in 2015
  • Ideal Location Offering Easy Access to Major Demand Generators Including McCoy's Building Supply Headquarters, Texas State University, Berry Aviation Inc., and Central Texas Medical Center
  • Exceptional Hotel Operations Recording $2.7 Million in Revenues and a Net Operating Income of over 27 Percent of Gross Revenues
  • Offered Fee Simple, Unencumbered by Management Contract or Debt

Investment Overview

High-Quality Asset in Exceptional Condition: The Fairfield Inn & Suites Austin San Marcos is an upper-midscale Hotel built in 2015. The Hotel features 108 spacious guest rooms and several amenities such as 1,072 square feet of meeting/event space, an outdoor pool, business center, laundry facilities, and a fitness center. Prime Location with Easy Access to Market Demand Generators: The Property is positioned off Interstate 35, offering excellent visibility and accessibility to major demand generators in the vicinity. McCoy’s Building Supply’s Headquarters are less than half a mile from the Hotel, making the Fairfield Inn & Suites the closest Property to the major lumber, roofing supplies, and building material retailer office. Other Business demand can be attributed to Berry Aviation Inc. (4.8 miles), Central Texas Medical Center (4.8 miles), Amazon Fulfillment Center (6.6 miles), and Texas State University (2.6 miles). Tanger and Premium Outlets (7.5 miles), San Marcos River (3.8 miles), Wonder World Cave and Park (4.5 miles), Texas State University Sports Complex (1.6 miles), and the San Marcos downtown (3.7 miles) bring leisure travelers to the area. San Marcos Growth and Nearby Development: San Marcos, Texas is the county seat of Hays County and about 30 miles south of Austin and 50 miles northwest of San Antonio, providing the ability to reach two of Texas’ largest cities within minutes. As Austin continues rapid expansion, San Marcos reaps large amounts of capital pouring into nearby developments. St. David’s Healthcare recently announced a $1 billion expansion including $434 million coming to south Austin and Kyle and a new $1 billion mixed-use development, with as much as 3 million square feet of office, residential, and retail space, that will begin construction in late 2022 or early 2023 in South Austin. Additionally, Hays County led the country in population growth with a 53 percent increase from 2010-2020 according to U.S. Census Data. Significant Top-Line Revenue and Operating Income: The Property achieved revenues above $2.66 million through 2021, and a healthy operating income of over $753 thousand or 27.2 percent of total revenue, after a 4 percent capital replacement reserve and 3 percent management fee. The Fairfield Inn & Suites by Marriott Brand: With more than 1,169 Fairfield Inn & Suites and an additional 387 more in the pipeline, the brand offers a hotel design experience that is unique from its competitors. Marriott International is a global category leader that remains simple to build and simple to operate. The Property greatly benefits from their Marriott International Brand Affiliation, which provides the world’s largest travel loyalty program, Marriott Bonvoy. Marriott’s global platform has over 160 million users and helps drive top-line revenue and bottom-line cost savings. Fee-Simple Interest: The Hotel presents an opportunity to acquire a well-branded, upper-midscale asset as fee-simple.

Exclusively Listed By

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