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 Instalodge Hotel and Suites Karnes City (‘Hotel’ or ‘Property’) located in Karnes City, Texas. The independent Hotel is offered at $2,950,000 or $23,790 per key. The Instalodge Hotel and Suites Karnes City is a 124-room Hotel built in 2014 and stationed at 2467 US-181 in Karnes City, Texas, just off Highway 181. Instalodge Hotel and Suites is a uniquely formatted hotel that caters to both extended-stay and overnight guests. With the option to rent rooms by the night, week, or month, the Hotel is flexibly suited for a variety of needs. Each room is a part of a building like the layout of an apartment complex, allowing guests to skip the lobby and enter their room via RF technology electronic door locks. All rooms are equipped with a full kitchen, including a stove and full-sized refrigerator. Additionally, each room has a 40-inch LCD/HD television, dining table with chairs, work desk, RF technology electronic door locks, and in-room phones. Various common area amenities at the Property include a spacious parking with large spaces and security monitors, an onsite guest laundry center, and conference room. Karnes City, located in Karnes County, Texas, is approximately 60 miles southeast of San Antonio. Situated in the heart of the Eagle Ford Shale oil and gas region, Karnes City has experienced significant growth and development in recent years due to its strategic location within the energy industry. The city serves as a hub for oil and gas operations, with numerous energy companies, service providers, and related businesses operating in the area such as Marathon Oil Corporation, EOG Resources, Devon Energy Corporation, Chesapeake Energy Corporation, and ConocoPhillips. This has led to a steady influx of workers traveling to the city and provided a significant boost for the local economy, a large portion of which has driven up demand for hotel rooms. Furthermore, the hotel is perfectly positioned in an Opportunity Zone and can provide upside to a potential owner in a 1031 exchange. In addition to demand generated by the energy sector, the downtown area features local shops, restaurants, and cultural attractions, providing opportunities for shopping, dining, and entertainment. Outdoor enthusiasts can explore the natural beauty of the surrounding area, including parks, rivers, and wildlife preserves. Karnes City Park offers recreational facilities such as playgrounds, picnic areas, and sports fields, while nearby rivers and lakes provide opportunities for fishing, boating, and outdoor recreation. Karnes City also boasts a rich history, with several historic sites and landmarks that reflect its past as a farming and ranching community. Lastly, the Karnes County Museum preserves and showcases the area's heritage through exhibits, artifacts, and educational programs.