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Hotel-Motel

Comfort Inn and Suites Odessa

801 S Jbs Pkwy, Odessa, TX 79761

Listing Price: $5,900,000

Cap Rate
2.54%
Number of Rooms
79
RevPAR
$37
Price/Room
$74,684
RRM
5.49
Year Built
2009

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 Comfort Inn & Suites Odessa (‘Hotel’ or ‘Property’). The Choice Hotels International-branded Hotel is offered at $5,900,000 or $74,684 per key. The Comfort Inn & Suites Odessa is a 79 room, upper-midscale Hotel located in Odessa, Texas. The Property is directly off Interstate 20 and JBS Parkway, two of the most trafficked thoroughfares in the city. The three-story Hotel was built in 2008 and constructed of stucco and stone exterior and pitched metal roof. Common area amenities include a hot breakfast bar and dining area, guest laundry facilities, vending machines, a business center, an outdoor pool, and a ?tness center. Ample large vehicle parking is available for trucks and RVs traveling through west Texas on the heavily trafficked Interstate 20. Located in the heart of the Permian Basin, Odessa is the industrial and commercial crossroads of west Texas. It’s positioned halfway between Dallas/Fort Worth and El Paso. Odessa and its sister city Midland, located just 18 miles east, make up the Petroplex hub and the Midland-Odessa MSA. The Permian Basin accounts for nearly 40 percent of all oil production in the United States and nearly 15 percent of natural gas production. This production has led to companies such as Chevron, ConocoPhillips, Accel Fusion, and Danos to set up operations in the Petroplex. Recently, Nacero Inc. announced an $8 billion gas to gasoline facility in Penwell, Texas (15 miles west of Odessa). This new development is expected to bring 3,500 construction jobs during development, four million daily drivers once opened, and an estimated $25 billion boost to the region’s economy. Additionally, the Comfort Inn & Suites is near recreational attractions like the Ector County Coliseum, the University of Texas Permian Basin which maintains attractions like the Stonehenge replica and the Presidential Archives and Leadership Library. The Midland International Airport is less than ten miles from the subject Property. In 2021, the Hotel recorded room revenues of over $921,000, coupled with a net operating income of over $106,000 or 11.3 percent of total revenues, after a four percent capital replacement reserve and three percent management fee. With a RevPAR of just $31.97 and a RevPAR penetration index of 73 percent in 2021, a new investor, who can focus on increasing occupancies through revenue management strategies, should expect to see a sharp incline in RevPAR leading to a higher operating income flow-through and year-over-year returns.

Investment Highlights

  • Three-Story, 79-Room, Interior-Corridor, Choice Hotels International-Branded Hotel
  • Excellent Highway Accessibility from Interstate 20 and JBS Parkway
  • Positioned Within the Midland-Odessa Metropolitan Statistical Area with Nearby Attractions like the Ector County Coliseum, the University of Texas Permian Basin, and the Presidential Archives
  • Nacero Inc. Recently Announced an $8 Billion Gas to Gasoline Facility in Penwell, Texas (15 Miles West of Odessa) that is Expected to Open in 2025 and Bring an Estimated $25 Billion Boost to the Region's Economy
  • 2021 RevPAR Penetration Index of 73 Percent – Presenting an Opportunity to Increase RevPAR Through Revenue Management Strategies

Exclusively Listed By

Hotel-Motel

Comfort Inn and Suites Odessa

Listing Price: $5,900,000

Cap Rate
2.54%
Number of Rooms
79
RevPAR
$37
Price/Room
$74,684
RRM
5.49
Year Built
2009

Investment Highlights

  • Three-Story, 79-Room, Interior-Corridor, Choice Hotels International-Branded Hotel
  • Excellent Highway Accessibility from Interstate 20 and JBS Parkway
  • Positioned Within the Midland-Odessa Metropolitan Statistical Area with Nearby Attractions like the Ector County Coliseum, the University of Texas Permian Basin, and the Presidential Archives
  • Nacero Inc. Recently Announced an $8 Billion Gas to Gasoline Facility in Penwell, Texas (15 Miles West of Odessa) that is Expected to Open in 2025 and Bring an Estimated $25 Billion Boost to the Region's Economy
  • 2021 RevPAR Penetration Index of 73 Percent – Presenting an Opportunity to Increase RevPAR Through Revenue Management Strategies

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 Comfort Inn & Suites Odessa (‘Hotel’ or ‘Property’). The Choice Hotels International-branded Hotel is offered at $5,900,000 or $74,684 per key. The Comfort Inn & Suites Odessa is a 79 room, upper-midscale Hotel located in Odessa, Texas. The Property is directly off Interstate 20 and JBS Parkway, two of the most trafficked thoroughfares in the city. The three-story Hotel was built in 2008 and constructed of stucco and stone exterior and pitched metal roof. Common area amenities include a hot breakfast bar and dining area, guest laundry facilities, vending machines, a business center, an outdoor pool, and a ?tness center. Ample large vehicle parking is available for trucks and RVs traveling through west Texas on the heavily trafficked Interstate 20. Located in the heart of the Permian Basin, Odessa is the industrial and commercial crossroads of west Texas. It’s positioned halfway between Dallas/Fort Worth and El Paso. Odessa and its sister city Midland, located just 18 miles east, make up the Petroplex hub and the Midland-Odessa MSA. The Permian Basin accounts for nearly 40 percent of all oil production in the United States and nearly 15 percent of natural gas production. This production has led to companies such as Chevron, ConocoPhillips, Accel Fusion, and Danos to set up operations in the Petroplex. Recently, Nacero Inc. announced an $8 billion gas to gasoline facility in Penwell, Texas (15 miles west of Odessa). This new development is expected to bring 3,500 construction jobs during development, four million daily drivers once opened, and an estimated $25 billion boost to the region’s economy. Additionally, the Comfort Inn & Suites is near recreational attractions like the Ector County Coliseum, the University of Texas Permian Basin which maintains attractions like the Stonehenge replica and the Presidential Archives and Leadership Library. The Midland International Airport is less than ten miles from the subject Property. In 2021, the Hotel recorded room revenues of over $921,000, coupled with a net operating income of over $106,000 or 11.3 percent of total revenues, after a four percent capital replacement reserve and three percent management fee. With a RevPAR of just $31.97 and a RevPAR penetration index of 73 percent in 2021, a new investor, who can focus on increasing occupancies through revenue management strategies, should expect to see a sharp incline in RevPAR leading to a higher operating income flow-through and year-over-year returns.

Exclusively Listed By

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