Investment Overview

Marcus & Millichap presents an exclusive investment opportunity for the Four Points by Sheraton Midland, a 107-room full-service hotel at 5518 Starboard Drive in Midland, Texas. The property offers excellent visibility and accessibility along TX-158, with over 22,000 vehicles in average annual daily traffic. As part of the Midland Metropolitan Statistical Area (MSA), the hotel is positioned within one of the most dynamic and productive energy markets in the world. The Midland MSA serves as a hub for the Permian Basin, driving sustained economic growth and attracting a consistent influx of business travelers and professionals. Amenities include an on-site restaurant, outdoor pool, fitness center, business center, breakfast area, guest laundry, dry cleaning services, and 1,500 square feet of event space, making it a versatile investment in a thriving market. The Four Points by Sheraton Midland is strategically located in the heart of the Midland MSA, offering unparalleled access to one of the most robust and rapidly growing economies in the United States. The city’s low unemployment rate, stable economic environment, and sustained population growth driven by corporate relocations and industry demand underscore its potential for long-term success. As a central hub of the Permian Basin, one of the world’s largest and most productive oilfields, Midland attracts a steady influx of executives, engineers, and technical professionals. The hotel’s prime location at the heart of Midland’s energy sector ensures consistent demand, with proximity to major oilfield service companies and energy corporations such as ExxonMobil, Chevron, ConocoPhillips, and Pioneer Natural Resources. This central position places the property at the forefront of the region’s business activity, making it ideal for both short-term and extended stays. Seamless connectivity via the nearby Midland International Air & Space Port enhances accessibility for domestic and international travelers, while the city’s diverse attractions, including cultural sites and a burgeoning restaurant scene, draw in leisure visitors. Furthermore, Midland benefits from its proximity to Odessa, creating a dual-city advantage for both business and tourism, solidifying the hotel’s appeal to a broad range of travelers. The Permian Basin, covering 86,000 square miles across West Texas and southeastern New Mexico, stands as a powerhouse in oil and gas production, contributing nearly 40% of U.S. oil output with more than 5.6 million barrels daily. Key shale formations like Wolfcamp, Spraberry, and Bone Spring have drawn major energy companies, including ExxonMobil, Chevron, and Occidental Petroleum, solidifying the region’s status as a global energy hub. Midland, as a key regional center with vital infrastructure such as pipelines, refineries, and the Midland International Air and Space Port, benefits from population growth and robust demand in sectors like hospitality, healthcare, and retail. The city’s continued role as a leading producer—ranking second in Texas for crude oil production and third for natural gas—ensures its critical place in the state’s energy sector. With an estimated 70 billion barrels of recoverable oil and increasing emphasis on sustainability and innovation, the Permian Basin’s ongoing expansion makes Midland a prime location for hotel investment and economic development. Midland is home to a range of healthcare services, including Midland Memorial Hospital, which offers comprehensive care in surgery, oncology, cardiology, and emergency services. Other specialty healthcare facilities, like the Texas Oncology-Midland Allison Cancer Center, further contribute to demand for accommodations. In education, the area is served by institutions like the University of Texas of the Permian Basin (UTPB) and Midland College, both of which drive a steady influx of students, faculty, and families in need of lodging. Midland is positioning itself as a regional destination for sports, recreation, and vibrant community life through significant infrastructure investments. Key projects include the Reyes-Mashburn-Nelms Park, which will feature a new baseball complex, and the $36 million Beal Park Soccer Complex with 62 fields, an amphitheater, playground, and splash park. The multi-million-dollar renovation of Hogan Park Golf Course, including a new irrigation system, and the $30+ million basketball and volleyball center at Scharbauer Sports Complex further strengthen Midland’s sports tourism potential. Additionally, existing facilities like the Bush Tennis Center and Bill Williams Softball Complex support the city’s growing appeal for sports events. At the same time, the city is enhancing its downtown with initiatives like the Chalk the Block artistic event, new holiday lighting at Centennial Park, and a permanent Wall Street lighting program to improve walkability and attract visitors to local businesses. Together, these efforts are fostering a dynamic downtown environment that complements the region’s strong energy industry and provides more opportunities for locals and visitors to enjoy Midland’s culture and attractions. With these developments, Midland offers a prime investment opportunity, driven by both its recreational assets and thriving community.