Investment Overview

As the exclusive representative of the seller, Marcus & Millichap’s Hospitality Division is pleased to present for sale to qualified investors the Stonewall Motor Lodge (“Hotel” or “Property”) located in Stonewall, Texas. The independent boutique hotel is offered at $2,500,000. The Stonewall Motor Lodge is located at 14818 US-290, Stonewall, Texas, right off of US-290, and is comprised of 12 remodeled rooms, four cabins, and four active recreational vehicle slots. The property spans 2.9 tranquil, tree-lined acres. The hotel is located in the heart of the renowned Texas Hill Country Wine Trail, amidst a backdrop of over 75 wineries, breweries, distilleries, restaurants, and attractions. The lodge is strategically positioned just 15 miles from the booming Fredericksburg, Texas. Fredericksburg is revered as the “Napa Valley of Texas” attracts an estimated two million visitors annually and is recognized as a high-barrier-to-entry location. This area is one of the fastest-growing domestic wine regions; the Texas Hill Country AVA is the third-largest in America. Hotel demand is projected to continue to grow with convention center in planning stages. The lodge’s rich history and recent refurbishment enhance its appeal. Originally built in the 1960s to accommodate the U.S. Secret Service and Press Corps during President Lyndon B. Johnson's visits, the Stonewall Motor Lodge retains its mid-century modern charm while incorporating contemporary comforts. Extensive renovations made in 2019 include new plumbing, electrical systems, insulation, and sheetrock, windows and outer trim, replacing the original half-wall rock with stained wood and completely refurbished bathrooms. In addition, a new roof was installed in 2024. Each room includes new doors, vinyl plank flooring, and tile, along with self-check-in remote locks. Additionally, custom-made furnishings and design elements were implemented to reflect the mid-century roots of the property. New mini splits were installed in 2023. The property benefits from Stonewall City water, a significant asset given the high cost of well installation along Highway 290. The manager’s apartment was also upgraded with a new kitchen, baths, and flooring, and the upstairs observation deck was redone in 2024. A new office and bathroom were added to the lobby, enhancing functionality. Moreover, the Stonewall Motor Lodge renovations were thoughtfully completed to provide a memorable experience. The upstairs deck, offering panoramic views, serves as an ideal spot to savor local wines against the backdrop of picturesque Texas landscapes. Newly constructed cabins feature modern amenities such as new windows, electrical, plumbing, and mini splits. An indoor/outdoor barn area, added in August 2019, provides a versatile space for gatherings and events. Advanced security features, including custom code room locks and security cameras, enhance guest safety and streamline operations, allowing for fully online bookings and reducing the need for a full-time check-in desk. The estimated capital expenditure for the extensive renovation would amount to an estimated $1.2 to $1.5 million in today’s market. For new ownership, the acquisition of this property represents a remarkable opportunity, blending historical charm, a coveted location, and a fully operational asset poised for growth. Moreover, the hotel distinguishes itself by transcending the traditional role of lodging and can seamlessly transition into a vibrant event venue capable of hosting various gatherings, from reunions to weddings. This versatility unlocks new avenues for revenue generation. Furthermore, with ample meeting space at its disposal, the hotel is strategically positioned to leverage group bookings, providing a clear advantage that is sure to enhance revenue streams.