Hotel-Motel
Comfort Suites Galveston
3606 89th St, Galveston, TX 77554
Listing Price: $4,650,000
Investment Overview
As the exclusive representative of the seller, Marcus & Millichap's Hospitality Division is pleased to present for sale to qualified investors the Comfort Suites Galveston (‘Hotel’ or ‘Property’). The Choice Hotels International-branded Hotel is offered at $4,650,000 or $81,579 per key.
Comfort Suites Galveston is a three-story hotel with 57-rooms located at 3606 89th St., on Galveston Island. Various common area amenities at the Property include a lounge/bar, seasonal outdoor pool, whirlpool/hot tub, 884 Sq. Ft. of meeting/event space, breakfast area, laundry facility with valet cleaning service, fitness center, and business center.
Galveston, TX part of the Houston-The Woodlands-Sugar Land Metropolitan Statistical Area (MSA), the fifth-largest MSA in the U.S. with over 7 million residents. The Houston MSA is a hub for energy, healthcare, shipping, and aerospace, with Galveston contributing as a port city and tourist destination. Galveston is 50 miles southeast of downtown Houston, connected via Interstate 45. The William P. Hobby Airport (40 miles away) and George Bush Intercontinental Airport (70 miles away) provide domestic and international air access.
The University of Texas Medical Branch (UTMB) employs 12,000 staff at its 84-acre campus, driving healthcare and research growth. The Port of Galveston supports thousands of jobs in shipping and tourism, handling over 1 million cruise passengers annually. The Galveston Independent School District employs 1,300 people.
UTMB anchors healthcare in Galveston with a 600-bed hospital specializing in trauma, oncology, and pediatrics. Shriners Children’s Hospital provides additional specialized pediatric care. Galveston is home to Texas A&M University at Galveston, with 2,000+ students specializing in marine and maritime studies. UTMB offers graduate and professional programs in medicine, nursing, and biomedical sciences.
Galveston’s tourism sector thrives on attractions like Moody Gardens, Schlitterbahn Waterpark, and the Port of Galveston, which serves over 1 million cruise passengers annually. The Strand District, Galveston Island State Park, and Stewart Beach draw millions of visitors each year.
As of December 2024, the 12-month average RevPAR in the Galveston & Texas City Hotel Submarket increased by over 4.5 percent, indicating robust growth and a lower-risk environment, boosting investor confidence in the asset and thriving market.
The Hotel's current RevPAR index of 85 percent indicates untapped potential. With strategic revenue management and marketing, a new owner could raise the index to 101-114%, driving room revenues to approximately $1.6-2.1 million. This improvement could result in advantages such as excess capital for renovations, and operational benefits such as improved cash flow and economies of scale.
The Hotel is priced at an attractive capitalization rate of 10 percent. This gives investors the opportunity to purchase the asset at a conservative price, offering substantial potential for increased earnings and a greater return on investment.
Investment Highlights
- Located in the Houston-The Woodlands-Sugar Land MSA, the fifth largest in the U.S., Galveston serves as a key port city and tourist hub, benefiting from economic drivers in energy and healthcare.
- Galveston is 50 miles southeast of Houston via Interstate 45, with air connectivity through William P. Hobby Airport (40 miles) and George Bush Intercontinental Airport (70 miles).
- Key employers include UTMB (12,000+ staff), the Port of Galveston (1M+ cruise passengers annually), and Galveston Independent School District (1,300 employees).
- UTMB anchors healthcare with its 600-bed hospital specializing in trauma and pediatrics, complemented by Shriners Children's Hospital.
- Texas A&M University at Galveston (2,000+ students) and UTMB's graduate programs generate year-round accommodation demand.
- Top attractions include Moody Gardens, Schlitterbahn Waterpark, the Port of Galveston, and Galveston Island State Park, drawing millions of visitors annually.
Listing Price: $4,650,000
Investment Highlights
- Located in the Houston-The Woodlands-Sugar Land MSA, the fifth largest in the U.S., Galveston serves as a key port city and tourist hub, benefiting from economic drivers in energy and healthcare.
- Galveston is 50 miles southeast of Houston via Interstate 45, with air connectivity through William P. Hobby Airport (40 miles) and George Bush Intercontinental Airport (70 miles).
- Key employers include UTMB (12,000+ staff), the Port of Galveston (1M+ cruise passengers annually), and Galveston Independent School District (1,300 employees).
- UTMB anchors healthcare with its 600-bed hospital specializing in trauma and pediatrics, complemented by Shriners Children's Hospital.
- Texas A&M University at Galveston (2,000+ students) and UTMB's graduate programs generate year-round accommodation demand.
- Top attractions include Moody Gardens, Schlitterbahn Waterpark, the Port of Galveston, and Galveston Island State Park, drawing millions of visitors annually.
Investment Overview
As the exclusive representative of the seller, Marcus & Millichap's Hospitality Division is pleased to present for sale to qualified investors the Comfort Suites Galveston (‘Hotel’ or ‘Property’). The Choice Hotels International-branded Hotel is offered at $4,650,000 or $81,579 per key. Comfort Suites Galveston is a three-story hotel with 57-rooms located at 3606 89th St., on Galveston Island. Various common area amenities at the Property include a lounge/bar, seasonal outdoor pool, whirlpool/hot tub, 884 Sq. Ft. of meeting/event space, breakfast area, laundry facility with valet cleaning service, fitness center, and business center. Galveston, TX part of the Houston-The Woodlands-Sugar Land Metropolitan Statistical Area (MSA), the fifth-largest MSA in the U.S. with over 7 million residents. The Houston MSA is a hub for energy, healthcare, shipping, and aerospace, with Galveston contributing as a port city and tourist destination. Galveston is 50 miles southeast of downtown Houston, connected via Interstate 45. The William P. Hobby Airport (40 miles away) and George Bush Intercontinental Airport (70 miles away) provide domestic and international air access. The University of Texas Medical Branch (UTMB) employs 12,000 staff at its 84-acre campus, driving healthcare and research growth. The Port of Galveston supports thousands of jobs in shipping and tourism, handling over 1 million cruise passengers annually. The Galveston Independent School District employs 1,300 people. UTMB anchors healthcare in Galveston with a 600-bed hospital specializing in trauma, oncology, and pediatrics. Shriners Children’s Hospital provides additional specialized pediatric care. Galveston is home to Texas A&M University at Galveston, with 2,000+ students specializing in marine and maritime studies. UTMB offers graduate and professional programs in medicine, nursing, and biomedical sciences. Galveston’s tourism sector thrives on attractions like Moody Gardens, Schlitterbahn Waterpark, and the Port of Galveston, which serves over 1 million cruise passengers annually. The Strand District, Galveston Island State Park, and Stewart Beach draw millions of visitors each year. As of December 2024, the 12-month average RevPAR in the Galveston & Texas City Hotel Submarket increased by over 4.5 percent, indicating robust growth and a lower-risk environment, boosting investor confidence in the asset and thriving market. The Hotel's current RevPAR index of 85 percent indicates untapped potential. With strategic revenue management and marketing, a new owner could raise the index to 101-114%, driving room revenues to approximately $1.6-2.1 million. This improvement could result in advantages such as excess capital for renovations, and operational benefits such as improved cash flow and economies of scale. The Hotel is priced at an attractive capitalization rate of 10 percent. This gives investors the opportunity to purchase the asset at a conservative price, offering substantial potential for increased earnings and a greater return on investment.

