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 Best Western Jacksonville (‘Hotel’ or ‘Property’). The Best Western International-branded Hotel is offered at $3,900,000 or $73,585 per key. The Best Western Jacksonville is a 53-unit, three-story, midscale Hotel, built in 2005 and located in College Station, Texas. The Property’s common area amenities include an exercise facility, indoor heated pool, guest laundry, and a business center. Each room features a microwave, refrigerator, and a flat-screen television. Positioned in Jacksonville, Texas, off Highway 69, the Best Western Jacksonville is just 2 hours from the Dallas-Fort Worth city center. Jacksonville is known as the “Tomato Capital of the World” due to the massive amounts of tomatoes produced and shipped out of the city. Annual events, such as the “Tops in Texas Rodeo” and the “Tomato Fest” celebration prove to be crucial seasonal demand generators. The investment Property can be found at 1659 South Jackson Street, an area with direct access to many of the city’s room revenue generators. This sought-after Hotel benefits from these key demand generators which include, UT Health (1.3 mi), Christus Mother Frances Hospital (1 mi), Lake Jacksonville Campgrounds (3.7 mi), Cherokee County Airport (6.5), and Tomato Bowl Stadium (1.6 mi). The region’s centralized location to Dallas, Houston, and Shreveport via U.S. Highways 69, 79, and 115 makes it a hub of transportation activity, with approximately 40,000 vehicles traversing the city’s highways each day. In 2022, the Property has achieved a total revenue greater than $1 million and has strengthened its RevPAR year-over-year. With the Property’s strong NOI sitting at greater than 33% of the total revenue, a prospective buyer should be able to take advantage of increased RevPAR penetration, capturing more market share and achieving a higher NOI flow-through. In January, the Texas East Area hotel submarket experienced a significant rise in the twelve-month average RevPAR and it continued to increase at an annual rate of 6.9%, surpassing the broader Texas East market's 4.1% increase. In the Texas East Area submarket, there are approximately 400 rooms currently being constructed, marking the largest pipeline in over a decade. Although there have been other construction projects in the submarket recently, this represents a change from the overall trend. The inventory has decreased in the past five years due to demolition activity outpacing new construction.