Investment Overview

As the exclusive representative of the seller, Marcus & Millichap is pleased to present this 80-room hotel conversion opportunity located along the I-69E / US-77/83 corridor in Brownsville, Texas (the “Hotel” or “Property”). The Property is being offered as a direct sale and marketed broadly on a “Request for Offers” basis, providing qualified investors with a transparent and competitive acquisition process. Pricing guidance and additional offering materials are available upon request. The Property consists of an existing, two-story, 80-key economy hotel situated on approximately 2.18 acres with direct highway frontage along a primary north–south border corridor. The site benefits from strong visibility, immediate access, and an established hospitality footprint that supports continued operation, renovation, and potential brand repositioning without entitlement or development risk. The Hotel is strategically positioned along one of South Texas’ most critical trade and logistics corridors, benefiting from durable, non-discretionary lodging demand driven by border commerce, logistics, government activity, and regional commercial travel. These demand drivers provide a consistent operating floor across economic cycles and support long-term market resilience. Additional economic fundamentals in the area reinforce both downside protection and upside potential. The Brownsville region benefits from ongoing oil and energy activity, increased institutional investment tied to major data center development, and continued expansion of aerospace-related operations. These factors provide incremental demand and long-term tailwinds without being required for the investment thesis to succeed. In-place pro-forma performance reflects $61 ADR and approximately 50 percent occupancy, which management believes is attributable to operational and branding inefficiencies rather than market weakness. Multiple nationally recognized franchise options are available under Wyndham, Choice, and Best Western, providing a clear path to improved distribution, rate integrity, and operating performance through rebranding and targeted capital investment. From a cost perspective, the Property benefits from meaningful replacement-cost insulation. An existing 80-key hotel on over two acres with comparable frontage and access would be materially more expensive and difficult to replicate today, providing structural downside protection if acquired at the appropriate basis. This opportunity is well suited for a value-add hospitality operator or an experienced multifamily investor expanding into lodging, seeking a basis-driven acquisition with clear operational levers and asymmetric return potential. Modest, achievable improvements in ADR and occupancy can materially increase cash flow and asset value without reliance on aggressive assumptions.