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Hotel-Motel

Microtel Inn & Suites by Wyndham Midland

200 W Longview Ave, Midland, TX 79701

Listing Price: $5,550,000

Number of Rooms
82
RevPAR
$55
Price/Room
$67,683
RRM
3.34
Year Built
2014

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 Microtel Inn & Suites by Wyndham Midland (‘Hotel’ or ‘Property’) located in Midland, Texas. The Wyndham Hotels & Resorts-branded Hotel is offered at $5,550,000 or $67,683 per key.

The Microtel Inn & Suites by Wyndham Midland is an 82-room, three-story Hotel stationed at 200 W Longview Avenue in Midland, Texas, just off Interstate 20. Various common area amenities at the Property include a business center, fitness center, breakfast area, and a guest laundry facility.

Midland, established in 1881, gets its name from its location as the midpoint between Fort Worth and El Paso along the Texas and Pacific Railroad. The county seat of Midland County, the city serves as the principal city of both the Midland Metropolitan Statistical Area (MSA) and the larger Midland-Odessa Combined Statistical Area. According to the Kinder Institute for Urban Research, Midland ranked first in GDP growth in 2020 and was the 17th fastest-growing city in the United States. The Midland International Air and Space Port, located 10 miles away, is the sole major airport in the region and ranks eighth in Texas for commercial service. The local economy of the region is supported by the Permian Basin Oil Field, which contains the most profitable oil field in the United States - the Mid-Continental Oil Field. In Texas alone, the Mid-Continental Oil Field is estimated to have approximately 190 billion barrels of oil. According to the Federal Reserve Bank of Dallas, the greater Permian Basin accounts for 40 percent of all oil production in the United States and 15 percent of its natural gas production. More than 20 energy firms with a primary focus on the Permian Basin, such as Anthem Oil & Gas, Anadarko, Apache, Baker Hughes, Chevron, Conoco Phillips, Occidental Petroleum, Diamondback Energy, and Halliburton Energy, are headquartered in Midland or located within 10 miles of the city. Moreover, Nacero Inc. has announced an $8 billion gas-to-gasoline facility in Penwell, Texas, which is 30 miles west of Midland. This new development is anticipated to create 3,500 construction jobs during development and attract four million drivers daily once opened, as well as provide an estimated $25 billion boost to the local economy.

In 2023, the Hotel recorded more than $1.64 million in revenue while maintaining a net operating income greater than $192,000, or 11.6 percent of gross revenue, after a 4 percent capital replacement reserve. Furthermore, the subject property has achieved an average room revenue of more than $1.7 million over the past five years while managed by a third party. As of January, the Midland & Odessa hotel submarket experienced a significant increase in its twelve-month RevPAR, rising at a year-over-year rate of 17.9 percent. This growth exceeded the already impressive 6.8 percent surge observed in the larger Texas West market. There are several ongoing construction projects in the Midland & Odessa submarket, which will add around 440 rooms to the area's existing inventory. A prospective buyer should be able to capitalize on the anticipated increase in RevPAR from better revenue management, not only benefiting from increased market share but also higher NOI flow-through.

Investment Highlights

  • Three-Story, 82-Room, Wyndham Hotels & Resorts-Branded Hotel
  • Subject Property has been Third-Party Managed
  • Located within the Permian Basin about 21 Miles East of Odessa and 120 Miles Southwest of Lubbock
  • Easily Accessible and Highly Visible from Interstate 20
  • Situated 11 Miles from Midland International Air & Space Port and Near Midland-Odessa's Largest Employers and Highest Value Businesses
  • YE 2023 Room Revenues Exceeded $1.64 Million while Maintaining an NOI Over $192,000
  • Average Room Revenues Since 2018 Over $1.7 Million
  • Offered Fee-Simple, Unencumbered by Management Contracts or Existing Debt

Exclusively Listed By

Financing By

Hotel-Motel

Microtel Inn & Suites by Wyndham Midland

Listing Price: $5,550,000

Number of Rooms
82
RevPAR
$55
Price/Room
$67,683
RRM
3.34
Year Built
2014

Investment Highlights

  • Three-Story, 82-Room, Wyndham Hotels & Resorts-Branded Hotel
  • Subject Property has been Third-Party Managed
  • Located within the Permian Basin about 21 Miles East of Odessa and 120 Miles Southwest of Lubbock
  • Easily Accessible and Highly Visible from Interstate 20
  • Situated 11 Miles from Midland International Air & Space Port and Near Midland-Odessa's Largest Employers and Highest Value Businesses
  • YE 2023 Room Revenues Exceeded $1.64 Million while Maintaining an NOI Over $192,000
  • Average Room Revenues Since 2018 Over $1.7 Million
  • Offered Fee-Simple, Unencumbered by Management Contracts or Existing Debt

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 Microtel Inn & Suites by Wyndham Midland (‘Hotel’ or ‘Property’) located in Midland, Texas. The Wyndham Hotels & Resorts-branded Hotel is offered at $5,550,000 or $67,683 per key. The Microtel Inn & Suites by Wyndham Midland is an 82-room, three-story Hotel stationed at 200 W Longview Avenue in Midland, Texas, just off Interstate 20. Various common area amenities at the Property include a business center, fitness center, breakfast area, and a guest laundry facility. Midland, established in 1881, gets its name from its location as the midpoint between Fort Worth and El Paso along the Texas and Pacific Railroad. The county seat of Midland County, the city serves as the principal city of both the Midland Metropolitan Statistical Area (MSA) and the larger Midland-Odessa Combined Statistical Area. According to the Kinder Institute for Urban Research, Midland ranked first in GDP growth in 2020 and was the 17th fastest-growing city in the United States. The Midland International Air and Space Port, located 10 miles away, is the sole major airport in the region and ranks eighth in Texas for commercial service. The local economy of the region is supported by the Permian Basin Oil Field, which contains the most profitable oil field in the United States - the Mid-Continental Oil Field. In Texas alone, the Mid-Continental Oil Field is estimated to have approximately 190 billion barrels of oil. According to the Federal Reserve Bank of Dallas, the greater Permian Basin accounts for 40 percent of all oil production in the United States and 15 percent of its natural gas production. More than 20 energy firms with a primary focus on the Permian Basin, such as Anthem Oil & Gas, Anadarko, Apache, Baker Hughes, Chevron, Conoco Phillips, Occidental Petroleum, Diamondback Energy, and Halliburton Energy, are headquartered in Midland or located within 10 miles of the city. Moreover, Nacero Inc. has announced an $8 billion gas-to-gasoline facility in Penwell, Texas, which is 30 miles west of Midland. This new development is anticipated to create 3,500 construction jobs during development and attract four million drivers daily once opened, as well as provide an estimated $25 billion boost to the local economy. In 2023, the Hotel recorded more than $1.64 million in revenue while maintaining a net operating income greater than $192,000, or 11.6 percent of gross revenue, after a 4 percent capital replacement reserve. Furthermore, the subject property has achieved an average room revenue of more than $1.7 million over the past five years while managed by a third party. As of January, the Midland & Odessa hotel submarket experienced a significant increase in its twelve-month RevPAR, rising at a year-over-year rate of 17.9 percent. This growth exceeded the already impressive 6.8 percent surge observed in the larger Texas West market. There are several ongoing construction projects in the Midland & Odessa submarket, which will add around 440 rooms to the area's existing inventory. A prospective buyer should be able to capitalize on the anticipated increase in RevPAR from better revenue management, not only benefiting from increased market share but also higher NOI flow-through.

Exclusively Listed By

Financing By

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