Investment Overview

As the exclusive representative of the seller, Marcus & Millichap's Hospitality Division is pleased to present for sale to qualified investors the Lone Star Inn (‘Hotel’ or ‘Property’). The independent Hotel is offered on a “call for offers” basis. Please reach out to the listing agent for more information. The Lone Star Inn is located at 3236 W Gentry Pkwy in Tyler, Texas, just off U.S. Highway 69. The 96-room, exterior-corridor, two-story building was constructed in 1973 and spans 1.69 acres. Various common area amenities at the Property include an outdoor pool, laundry facility, vending machine, and spacious parking. Tyler, Texas is the largest city in Northeast Texas and is the county seat of Smith County. The Hotels proximity to some of the city’s popular demand generators allows it to take full advantage of the prominent industries within the local economy. Known as the "Rose Capital of America," Tyler boasts stunning rose gardens and hosts the annual Texas Rose Festival which attracts thousands of tourists each October. Entertainment demand drivers for the city include the Broadway Square Mall (6.7 miles), one of the two major malls in the East Texas Metroplex, as well as the Tyler Museum of Art (5.7 miles), which showcases an impressive collection of American art. The city's Caldwell Zoo (1.3 miles) is a must-visit and is home to more than 3,000 animals spread out of 85 acres of land. The University of Texas-Tyler (8.2 miles) is also located nearby which serves as an additional demand driver. The city is home to major employers like East Texas Medical Center (4.5 miles) and Trinity Mother Frances Health System (6.5 miles) , contributing significantly to the healthcare sector, as well as Cavender’s (6.6 miles), Delek Refining (4.4 miles), and John Soules Food (4.8 miles). Tyler also benefits from 3 higher education institutions with a combined enrollment of over 24,000 students. The recent influx of investments has further bolstered the economy, with notable projects such as the expansion of the South Broadway Avenue commercial district and the development of the Rose Complex, a $28 million convention center. In the trailing twelve-month period ending in December 2022, the limited-service Hotel recorded room revenues of over $1.03 million and a net operating income just over $446,439, or 42.8 percent as a percentage of total revenues, after a 4 percent capital replacement reserve. As of June, twelve-month average RevPAR in the Tyler & Longview hotel submarket was climbing at an annual rate of 3.9 percent. A prospective buyer should be able to capitalize on the anticipated increase in RevPAR through better revenue management, not only benefiting from increased market share but also higher NOI flow-through.