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Hotel-Motel

Southern Inn & Suites Yorktown

1241 TX-72, Yorktown, TX 78164

Listing Price: $2,500,000

Cap Rate
7.15%
Number of Rooms
44
RevPAR
$37
Price/Room
$56,818
RRM
4.25
Year Built
2012

Investment Overview

As the exclusive representative of the seller, Marcus & Millichap's National Hospitality Division is pleased to present for sale to qualified investors the Southern Inn & Suites Yorktown (‘Hotel’ or ‘Property’). The independent-branded Hotel is offered at $2,500,000 or $56,818 per key. The Southern Inn & Suites is located at 1241 TX-72 in Yorktown, Texas, just off Highway 72. The exterior-corridor Hotel was built in 2012, situated on five acres, and has 44-rooms spread across three one-story buildings. The Property maintains a host of common area amenities including an outdoor pool, a barbeque pit, a laundry facility, and an RV lot located behind the Hotel. Located in the southeast region of Texas, Yorktown is situated off Highway 72, the most trafficked highway in the city. With the area considered the heart of the Eagle Ford Shale, presumably the largest shale formation in the United States, the oil and gas industry has been the cornerstone of the local economy for decades. Yorktown, home to the largest sand fracking facility in North America, hit a four-year high in gas production by the end of 2020, producing nearly 1.3 billion cubic feet. This high volume of production that the area sees is facilitated by its top employers in the industry. These companies include ConocoPhillips, Howco Oilfield Services, Icenhower Oil & Gas Incorporated, and D&B Flowback and Well Testing, with their respective contractual business providing for the region a strong and lucrative economy. Historically, the limited-service Hotel recorded room revenues of $1.01 million and a net operating income of $568 thousand or 51.2 percent of total revenues, after a four percent capital replacement reserve. Yorktown’s room demand correlates strongly with oil and gas production causing a decrease in rooms sold through 2020 and 2021 as the industry slowed down. However, with oil prices reaching their highest levels in six years in 2021, the industry is rebounding strongly, suggesting a major improvement in market RevPAR. The Property includes an RV park with short to long-term tenants, providing an additional source of revenue.

Investment Highlights

  • One-Story, 44-Room, Exterior-Corridor, Independent-Branded Hotel with On-Site RV Park
  • Highly Visible and Easily Accessible from Highway 72, the Most Trafficked Highway in Yorktown
  • Situated in the Eagle Ford Shale with a Multitude of National and Local Oil & Gas Companies
  • 2019 Room Revenues of over $1.01 Million and Net Operating Income Above $568,000

Exclusively Listed By

Hotel-Motel

Southern Inn & Suites Yorktown

Listing Price: $2,500,000

Cap Rate
7.15%
Number of Rooms
44
RevPAR
$37
Price/Room
$56,818
RRM
4.25
Year Built
2012

Investment Highlights

  • One-Story, 44-Room, Exterior-Corridor, Independent-Branded Hotel with On-Site RV Park
  • Highly Visible and Easily Accessible from Highway 72, the Most Trafficked Highway in Yorktown
  • Situated in the Eagle Ford Shale with a Multitude of National and Local Oil & Gas Companies
  • 2019 Room Revenues of over $1.01 Million and Net Operating Income Above $568,000

Investment Overview

As the exclusive representative of the seller, Marcus & Millichap's National Hospitality Division is pleased to present for sale to qualified investors the Southern Inn & Suites Yorktown (‘Hotel’ or ‘Property’). The independent-branded Hotel is offered at $2,500,000 or $56,818 per key. The Southern Inn & Suites is located at 1241 TX-72 in Yorktown, Texas, just off Highway 72. The exterior-corridor Hotel was built in 2012, situated on five acres, and has 44-rooms spread across three one-story buildings. The Property maintains a host of common area amenities including an outdoor pool, a barbeque pit, a laundry facility, and an RV lot located behind the Hotel. Located in the southeast region of Texas, Yorktown is situated off Highway 72, the most trafficked highway in the city. With the area considered the heart of the Eagle Ford Shale, presumably the largest shale formation in the United States, the oil and gas industry has been the cornerstone of the local economy for decades. Yorktown, home to the largest sand fracking facility in North America, hit a four-year high in gas production by the end of 2020, producing nearly 1.3 billion cubic feet. This high volume of production that the area sees is facilitated by its top employers in the industry. These companies include ConocoPhillips, Howco Oilfield Services, Icenhower Oil & Gas Incorporated, and D&B Flowback and Well Testing, with their respective contractual business providing for the region a strong and lucrative economy. Historically, the limited-service Hotel recorded room revenues of $1.01 million and a net operating income of $568 thousand or 51.2 percent of total revenues, after a four percent capital replacement reserve. Yorktown’s room demand correlates strongly with oil and gas production causing a decrease in rooms sold through 2020 and 2021 as the industry slowed down. However, with oil prices reaching their highest levels in six years in 2021, the industry is rebounding strongly, suggesting a major improvement in market RevPAR. The Property includes an RV park with short to long-term tenants, providing an additional source of revenue.

Exclusively Listed By

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