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 Country Inn & Suites Lackland AFB San Antonio (‘Hotel’ or ‘Property’) located in San Antonio, Texas. The Choice Hotels-branded Hotel is offered at $7,150,000 or $96,622 per key. The Country Inn & Suites Lackland AFB San Antonio is a 74-room, two-story Hotel stationed at 6502 Enrique M. Barrera Parkway in San Antonio, Texas, just off U.S. Highway 90 near Interstate 410. Various common area amenities at the Property include a business center, guest laundry facility, outdoor pool with a hot tub, and 1,500 square feet of meeting space. The seventh most populous city in the United States and the second-most populous in Texas, San Antonio is located in Bexar County within the San Antonio metropolitan statistical area. An economic powerhouse, the city of San Antonio has improved largely from gains in housing and manufacturing. Boasting above-average population increases, the city benefits greatly from the presence of significant downtown redevelopment efforts and lower costs of doing business. Factored into the affordability of housing in the area and an increased manufacturing presence have contributed to San Antonio’s above-average overall performance. Top employers in the city include Lackland Air Force Base, Methodist Hospital System, USAA, Baptist Health System, and the University of Texas Health Science Center. Best known for its role as the sole location for the U.S. Air Force enlisting basic training. Each year, thousands of trainees go through Lackland’s 8-week training program generating significant demand for hotel rooms for military personnel and their families. Additionally, six major Fortune 500 companies are located in the city, including Valero Energy Corp (20.7 miles), Tesoro Corp (25.5 miles), USAA Federal Savings Bank (16.2 miles), Clear Channel Communications (15.8 miles), NuStar Energy (23.4 miles) and CST Brands (28.5 miles). Another major economic contributor to the city is both the nearby Palo Alto College and Texas A&M – San Antonio, both of which maintain world-class swimming facilities and provide a bounty of events during the spring. San Antonio is also buzzing with entertaining attractions that drive tourism, a significant contributor to the city’s economy. Such attractions include the San Antonio River Walk (8.9 mi), the Alamo (7.4 mi), SeaWorld San Antonio (21.7 mi), Six Flags Fiesta Texas (23.5 mi), San Antonio Museum of Art (10 mi), and Schlitterbahn (39.7 mi). Furthermore, the San Antonio International Airport is 17.1 miles from the Country Inn & Suites Lackland AFB San Antonio. Current hotel operations have been delegated by absentee ownership to a management company, presenting a potential upside for new, on-site ownership to capitalize on inefficient cash flow and improve hotel performance. Converted in June 2015 from a Holiday Inn, the subject property will benefit from the well-recognized Choice Hotels brand and its superior reservation system. Additionally, the Hotel is still fully equipped with a kitchen, providing the opportunity for new ownership to convert to a full-service hospitality asset in the future. A new investor can expect the hospitality demand in the market to continue growing as San Antonio led the United States with the highest numerical gain of people between 2020 and 2021. In the trailing twelve-month period ending in December 2022, the limited-service Hotel recorded room revenues of almost $2 million and a net operating income just over $479 thousand, or 22.88 percent as a percentage of total revenues, after a 4 percent capital replacement reserve. 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.