Investment Overview

As the exclusive representative of the seller, Marcus & Millichap's Hospitality Division is pleased to present for sale to qualified investors the Texan Inn and Suites (‘Hotel’ or ‘Property’) located in Tilden, Texas. The Independent Hotel is offered at $2,600,000 or $59,091 per key. Tilden, TX, is strategically located at the intersection of Texas State Highways 16 and 72, providing critical access to surrounding areas and serving as a vital transportation hub in South Texas. Highway 16 runs north-south, connecting Tilden with San Antonio to the north and Freer to the south, while Highway 72 runs east-west, linking the town with Three Rivers and Cotulla. Although not part of a Metropolitan Statistical Area (MSA), Tilden’s proximity to the San Antonio-New Braunfels MSA enhances its appeal, especially for those seeking investment potential in a tertiary yet economically active region. This two-story hotel, located at 3084 TX-16, features 44 guest rooms and a two-bedroom, two-bath owner’s apartment. Recent capital expenditures at the property include the installation of electronic locks, upgrades to exterior lighting, new faceplates for motel signs, fresh bed sheets and top sheets, and the addition of 35 brand new PTAC units. Amenities such as a business center, barbecue grills, a garden area, and ample parking make the property attractive for both short-term and long-term stays, catering to corporate clients and travelers alike. Situated equidistant from major cities such as San Antonio, Corpus Christi, and Laredo, Tilden serves as a key midpoint between these major cities, offering easy access to economic and cultural hubs. This well-positioned property offers attractive cash flow, making it a worthwhile investment for those looking to capitalize on demand from the local energy sector. With potential for rebranding, new ownership can unlock new value by securing corporate contracts from nearby companies, further driving revenue through extended-stay business and increased room rates. Rebranding presents a strategic opportunity to enhance corporate appeal, particularly from energy sector clients. By creating a more business-friendly atmosphere, the property can attract corporate clients, increase occupancy, and command higher average daily rates (ADR). The consistent demand from nearby energy companies ensures that rebranding will not only improve immediate returns but also boost future resale value. The Texan Inn and Suites benefits directly from its proximity to the Eagle Ford Shale, which, as of mid-2024, produced 1.1 million barrels of oil per day and 7.3 billion cubic feet of natural gas. Tilden's economy is primarily driven by the energy sector, with 874 producing leases and over 4,800 drilled wells supporting ongoing oil and gas production in the area. Local infrastructure expansions, including Ironwood Midstream’s management of 390 miles of pipelines, ensure ongoing production and a steady stream of workers needing long-term accommodation. Major players such as Marathon Oil, ConocoPhillips, and EOG Resources anchor the local workforce, driving consistent demand for extended-stay lodging. This industrial activity provides the hotel with a reliable guest base, particularly for oilfield workers requiring long-term accommodations.