Hotel-Motel

Best Western Inn of Del Rio

810 Veterans Boulevard, Del Rio, TX 78840

Listing Price: $3,250,000

Cap Rate
19.12%
Number of Rooms
61
RevPAR
$64
Gross SF
60,014
Price/Room
$53,279
RRM
2.30
Price/Gross SF
$54.15
Year Built
1984

Investment Overview

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.

Investment Highlights

  • 61-Room, Exterior Corridor, Midscale Hotel
  • Offered at a 2.30 RRM, 19.1% Cap Rate
  • Less than Two Miles from Del Rio International Airport
  • Priced Significantly Below Replacement Cost at $53,279 Per Key
  • Best Western PIP Recently Completed
  • Strong Positive Cash Flows of Approximately $621,239 or 44 Percent of Total Rev

Exclusively Listed By

Hotel-Motel

Best Western Inn of Del Rio

Listing Price: $3,250,000

Cap Rate
19.12%
Number of Rooms
61
RevPAR
$64
Gross SF
60,014
Price/Room
$53,279
RRM
2.30
Price/Gross SF
$54.15
Year Built
1984

Investment Highlights

  • 61-Room, Exterior Corridor, Midscale Hotel
  • Offered at a 2.30 RRM, 19.1% Cap Rate
  • Less than Two Miles from Del Rio International Airport
  • Priced Significantly Below Replacement Cost at $53,279 Per Key
  • Best Western PIP Recently Completed
  • Strong Positive Cash Flows of Approximately $621,239 or 44 Percent of Total Rev

Investment Overview

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.

Exclusively Listed By

MM Texture Background
MM Textured Background Lower