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Hotel-Motel

Howard Johnson by Wyndham Houma

105 Lamar St, Houma, LA 70360

Listing Price: $3,100,000

Cap Rate
34.16%
Number of Rooms
57
RevPAR
$98
Price/Room
$54,386
RRM
1.52
Year Built
2008

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 Howard Johnson by Wyndham Houma (‘Hotel’ or ‘Property’). The Wyndham-branded Hotel is offered at $3,100,000 or $54,386 per key. The Howard Johnson by Wyndham Houma is located at 105 Lamar Street in Houma, Louisiana just off Route 182. The 57-room, two-story building was built in 2008 and sits on a 1.33-acre plot. The Property maintains a plethora of common area amenities including a business center, fitness center, guest laundry facility, barbeque grills, and parking that accommodates both buses and trucks. The largest city and parish seat of Terrebonne Parish, Houma is centrally located between New Orleans, Lafayette, and Baton Rouge, Louisiana. An industrially diverse city, Houma’s largest economic contributions come from the mining, retail trade, and health care sectors. Combined, these industries provide employment for more than a third of the city’s population. The city’s top employers largely reside within these major industries with companies such as Gulf Island Fabrication, Offshore Drilling Company, Performance Energy Services, and Chet Morrison Contractors employing the most. Additionally, tourism provides a significant uptick in economic value for most of the year, especially during the 47 days preceding Easter. This portion of the year, known as Mardi Gras, is a two-week-long celebration of New Orleans’ Cajun roots. Despite New Orleans being the most popular place to engage in the festivities, Mardi Gras is widely observed by all of Louisiana and beyond. Other attractions that drive tourism to Houma include Southland Mall, Downtown Marina, and the Houma-Terrebonne Civic Center. In addition to city-oriented activities, local outdoor attractions also generate substantial interest from locals and tourists alike. For instance, Mandalay National Wildlife Refuge and Lake Theriot provide ample opportunity for visitors to enjoy Houma’s natural aesthetic. Lastly, visitors looking to delve into the history of the region can fulfill their curiosity at the Bayou Terrebonne Waterlife Museum, Regional Military Museum, or the Southdown Plantation & Museum. With Houma Terrebonne Airport just 5.7 miles from the Property, all Houma has to offer can be quickly accessible after check-in. In 2021, the Hotel posted a RevPAR of $50.45 with daily rates at $104.68 and 48.2 percent rooms occupied, leading to over $1.04 million in room revenue. Through twelve months ending June 2022, the Hotel has nearly doubled room revenues from year-end 2021 and recorded over $2.04 million. The Hotel is leading the STR-defined competitive set in RevPAR growth and presents an opportunity for a new investor to acquire a well-positioned asset and continue to outperform the competition at a price below replacement cost.

Investment Highlights

  • Two-Story, 57-Room, Economy, Interior-Corridor, Wyndham-Branded Hotel
  • Priced Below Replacement Cost at $54,386 Per Key
  • Over 30 Oil and Gas Companies Operating in the Surrounding Area, Providing Contractual Business Opportunities
  • Operating as the Leading Hotel in STR-Defined Competitive Set for RevPAR Growth Through Trailing Twelve-Month June 2022
  • Priced at a 34.16% Cap Rate Based on June 2022 T-12
  • Property is Priced at a 1.52x Room Revenue Multiplier with a Projected Total Return of 149%

Exclusively Listed By

Hotel-Motel

Howard Johnson by Wyndham Houma

Listing Price: $3,100,000

Cap Rate
34.16%
Number of Rooms
57
RevPAR
$98
Price/Room
$54,386
RRM
1.52
Year Built
2008

Investment Highlights

  • Two-Story, 57-Room, Economy, Interior-Corridor, Wyndham-Branded Hotel
  • Priced Below Replacement Cost at $54,386 Per Key
  • Over 30 Oil and Gas Companies Operating in the Surrounding Area, Providing Contractual Business Opportunities
  • Operating as the Leading Hotel in STR-Defined Competitive Set for RevPAR Growth Through Trailing Twelve-Month June 2022
  • Priced at a 34.16% Cap Rate Based on June 2022 T-12
  • Property is Priced at a 1.52x Room Revenue Multiplier with a Projected Total Return of 149%

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 Howard Johnson by Wyndham Houma (‘Hotel’ or ‘Property’). The Wyndham-branded Hotel is offered at $3,100,000 or $54,386 per key. The Howard Johnson by Wyndham Houma is located at 105 Lamar Street in Houma, Louisiana just off Route 182. The 57-room, two-story building was built in 2008 and sits on a 1.33-acre plot. The Property maintains a plethora of common area amenities including a business center, fitness center, guest laundry facility, barbeque grills, and parking that accommodates both buses and trucks. The largest city and parish seat of Terrebonne Parish, Houma is centrally located between New Orleans, Lafayette, and Baton Rouge, Louisiana. An industrially diverse city, Houma’s largest economic contributions come from the mining, retail trade, and health care sectors. Combined, these industries provide employment for more than a third of the city’s population. The city’s top employers largely reside within these major industries with companies such as Gulf Island Fabrication, Offshore Drilling Company, Performance Energy Services, and Chet Morrison Contractors employing the most. Additionally, tourism provides a significant uptick in economic value for most of the year, especially during the 47 days preceding Easter. This portion of the year, known as Mardi Gras, is a two-week-long celebration of New Orleans’ Cajun roots. Despite New Orleans being the most popular place to engage in the festivities, Mardi Gras is widely observed by all of Louisiana and beyond. Other attractions that drive tourism to Houma include Southland Mall, Downtown Marina, and the Houma-Terrebonne Civic Center. In addition to city-oriented activities, local outdoor attractions also generate substantial interest from locals and tourists alike. For instance, Mandalay National Wildlife Refuge and Lake Theriot provide ample opportunity for visitors to enjoy Houma’s natural aesthetic. Lastly, visitors looking to delve into the history of the region can fulfill their curiosity at the Bayou Terrebonne Waterlife Museum, Regional Military Museum, or the Southdown Plantation & Museum. With Houma Terrebonne Airport just 5.7 miles from the Property, all Houma has to offer can be quickly accessible after check-in. In 2021, the Hotel posted a RevPAR of $50.45 with daily rates at $104.68 and 48.2 percent rooms occupied, leading to over $1.04 million in room revenue. Through twelve months ending June 2022, the Hotel has nearly doubled room revenues from year-end 2021 and recorded over $2.04 million. The Hotel is leading the STR-defined competitive set in RevPAR growth and presents an opportunity for a new investor to acquire a well-positioned asset and continue to outperform the competition at a price below replacement cost.

Exclusively Listed By

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