810 Veterans Boulevard, Del Rio, TX 78840
Marcus & Millichap's National Hospitality Group, as an exclusive representative of the seller, is pleased to present for sale to qualified investors the Best Western Inn of Del Rio. The Best Western-branded hotel is priced at $3,250,000 or $53,279 price per room; this represents a 2.30 times multiple on year-end 2019 room revenues. An upward-trending hotel, constructed in 1984, is located near the Del Rio International Airport.
Priced at an attractive 19.1 percent capitalization rate, this two-story, 61-room hotel presents a new owner the opportunity to acquire an upward trending asset with strong positive cash flows. This well-maintained hospitality asset is being sold at a price below replacement cost. Current ownership recently completed Best Western PIP. The hotel is well-equipped with an outdoor pool, fitness center, and laundry facilities.
Operationally, the hotel achieved $1,411,410 in room revenue, resulting in a net operating income of approximately 44 percent of total revenue; this translates to about $621,239 before debt service. The property has outperformed the competitive set in ADR, reaching a penetration index of 95 percent. The subject property has experienced over 96 percent growth in RevPAR since 2017.
The expenses include provisions for a four percent reserve for capital replacement. The hotel is offered fee simple, unencumbered by a management contract and debt.
Marcus & Millichap's National Hospitality Group, as an exclusive representative of the seller, is pleased to present for sale to qualified investors the Best Western Inn of Del Rio. The Best Western-branded hotel is priced at $3,250,000 or $53,279 price per room; this represents a 2.30 times multiple on year-end 2019 room revenues. An upward-trending hotel, constructed in 1984, is located near the Del Rio International Airport.
Priced at an attractive 19.1 percent capitalization rate, this two-story, 61-room hotel presents a new owner the opportunity to acquire an upward trending asset with strong positive cash flows. This well-maintained hospitality asset is being sold at a price below replacement cost. Current ownership recently completed Best Western PIP. The hotel is well-equipped with an outdoor pool, fitness center, and laundry facilities.
Operationally, the hotel achieved $1,411,410 in room revenue, resulting in a net operating income of approximately 44 percent of total revenue; this translates to about $621,239 before debt service. The property has outperformed the competitive set in ADR, reaching a penetration index of 95 percent. The subject property has experienced over 96 percent growth in RevPAR since 2017.
The expenses include provisions for a four percent reserve for capital replacement. The hotel is offered fee simple, unencumbered by a management contract and debt.
