Investment Overview

Marcus & Millichap presents an exclusive investment opportunity for Staybridge Suites Las Cruces, an IHG Hotel. This 115-room select-service property, located at 2651 Northrise Drive in Las Cruces, New Mexico, offers excellent visibility and accessibility along US-70. A standout in the market, Staybridge Suites provides all-suite accommodations designed for both business and leisure travelers. Each suite is equipped with a full-size refrigerator, dishwasher, two-top burner, toaster, full-size coffee maker, and microwave. Two-bedroom units are additionally outfitted with toaster ovens. Amenities include a resort-style pool, complimentary movie theater, outdoor gathering area, free high-speed wireless Internet, an Internet café, guest laundry facilities, and a complimentary breakfast bar. The property also features 1,171 square feet of indoor event space, ideal for meetings and gatherings. Situated in a growing market with diverse demand generators, Las Cruces is well-positioned for further development of select-service and extended-stay properties. Las Cruces is located approximately 40 miles north of El Paso, Texas, and 225 miles south of Albuquerque, making it a strategic destination for travelers along I-10 and I-25. The city serves as a major stop along these interstate highways, which are key commercial corridors connecting the Southwest and beyond, driving transient travel and business activity. Close proximity to I-70 and just 15-20 minutes from White Sands Missile Range makes travel convenient for business and leisure travelers alike. Additionally, the Las Cruces Metropolitan Statistical Area (MSA) encompasses all of Doña Ana County, offering a regional population of over 200,000 residents. It serves as a key economic and cultural hub in southern New Mexico. The MSA benefits from its proximity to the U.S.-Mexico border, fostering cross-border trade and commerce, as well as attracting international visitors. Its robust agricultural industry, anchored by pecan and chile production, contributes to the local economy. Additionally, the area is known for its growing focus on renewable energy projects and aerospace innovation, providing long-term growth opportunities for the region. The military presence in Las Cruces is a major economic driver, with three significant installations contributing to the local and regional economy. White Sands Missile Range, Holloman Air Force Base, and Fort Bliss collectively provide substantial support to the community. White Sands Missile Range alone pumps $2.3 million per day into the local economy of southern New Mexico, underscoring its vital role. These installations not only create demand for extended-stay accommodations and services but also attract military personnel, contractors, and their families to the area, contributing to a steady flow of visitors and economic activity. Las Cruces benefits from a diversified economy, with key sectors including agriculture, government, and healthcare. Major employers such as Memorial Medical Center and MountainView Regional Medical Center are significant demand generators in the healthcare sector, while agriculture and government institutions, including local businesses, drive economic growth. The city’s stable economy is further supported by government and healthcare employers, positioning Las Cruces as a thriving business hub that supports steady demand for hotels. New Mexico State University (NMSU), a major land-grant university with over 14,000 students, is a primary driver of hotel demand in Las Cruces. The university generates consistent traffic through academic events, sports competitions, and research conferences, and its focus on agriculture and space-related technologies attracts professionals and visitors. Additionally, the Las Cruces Convention Center (LCCC), a 72,000-square-foot facility with ample event space, hosts a variety of meetings, conferences, and trade shows, further boosting hotel demand. Las Cruces also offers a rich array of cultural and recreational attractions, including the Organ Mountains- Desert Peaks National Monument, Mesilla Valley, Old Mesilla Plaza, and the annual Las Cruces International Film Festival, which attracts global attendees and supports continued tourism growth. Staybridge Suites, a trusted name in the IHG Hotels & Resorts family, is renowned for its focus on providing home-like comfort with upscale amenities. Designed to meet the needs of extended-stay travelers, Staybridge Suites offers spacious suites equipped with full kitchens, complimentary breakfast buffets, free WiFi, and dedicated workspaces. This brand caters to both business and leisure guests by combining convenience and flexibility with thoughtful design and personalized service. Its signature social evenings and outdoor living spaces enhance the guest experience, fostering a sense of community. As part of the globally recognized IHG portfolio, Staybridge Suites stands out as an exceptional investment opportunity, appealing to travelers seeking premium comfort and functionality during longer stays. This profitable investment opportunity offers the hotel at a price of $14.65 million, reflecting a solid 11.1 percent capitalization (cap) rate, signaling substantial potential for enhanced cash-on-cash returns and robust financial performance over the projected holding period. In 2024, the property generated $4.14 million in gross revenue and achieved $1.62 million in net operating income (NOI), with a strong NOI margin of 39.1 percent. This impressive performance boosts the hotel’s valuation, setting it up for significant returns upon eventual sale. Additionally, the Las Cruces/Alamogordo hospitality submarket is showing promising growth, with revenue per available room (RevPAR) for upscale hotels increasing by 7.1 percent annually in 2024. With the anticipated completion of the property improvement plan (PIP), the hotel is wellpositioned to drive increases in average daily rate (ADR), further enhancing profitability and delivering even greater returns for investors. This indicates a thriving market with rising guest demand, reinforcing the potential for strong cash flow and improved profitability for hotel operators in the region.