Hotel-Motel

La Quinta Inn & Suites Houma

189 Synergy Center Blvd, Houma, LA 70360

Listing Price: $3,300,000

Cap Rate
11.23%
Number of Rooms
68
RevPAR
$45
Gross SF
46,590
Price/Room
$48,529
RRM
2.94
Price/Gross SF
$70.83
Year Built
2006

Investment Overview

Marcus & Millichap's National Hospitality Group, as exclusive representative of the Seller, is pleased to present for sale to qualified investors the La Quinta Inn & Suites in Houma, Louisiana. The midscale hotel is part of Wyndham Hotels and Resorts, the largest hotel franchise company in the world. The 68-room property is offered at $3,300,000 or $48,529 per key. In addition, the limited-service hotel is listed below 3x gross room revenue, based on the most recent trailing twelve months, August 2020.

Located in the south-central coastal area of the State, Houma is highly dependent on the oil and gas extraction industry in the Gulf of Mexico and the spillover sectors such as machinery, fabrication, shipbuilding and other marine related transportation. As a result, hotel demand in this area is less affected by the pandemic. Also, the La Quinta Inn & Suites Houma further benefits from additional leisure travel brought on due to the relation to Southland Mall.

Priced at a 11.23 percent capitalization rate, the three-story, 2006 constructed hotel offers a new investor(s) the opportunity to acquire an upwardly trending asset at a price, that is below replacement costs. Furthermore, an owner-operator can further take full advantage of reducing management and other labor costs thus, maximizing profits.

According to the August 2020 STR report, the property showcased a monthly $96.86 RevPar, a 220% change from the previous year. Furthermore, year to date 2020, the hotel is up 71% in RevPar vs the same period 2019. Additionally, with 161 percent RevPar market penetration index for the month of August, and 123% RevPAR index year to date, the subject property is the #1 RevPar leader in the market competitive set in 2020; this further sets the hotel to capitalize on future economic developments.

On the horizon, the area should see a significant increase in demand from a $35 Million to the South Lafourche Leonard Miller Junior Airport that currently brings in 140,000 passengers/year, more than half (approx. 80,000) are Chevron-related employees. In addition, Energy World LNG project is in the planning stage of an $888 Million export facility that will sit on 150 acres just south of the La Quinta Houma which is set to attract major business demand to the surrounding area.

The expenses include provisions for a four percent capital reserve and a three percent management fee. The hotel is offered fee simple, unencumbered by a management contact and/or debt.

Investment Highlights

  • Closest Hotel to Southland Mall, Located Less Than One Mile Away
  • Priced Significantly Below Replacement Cost at $48,529 Per Key
  • Hotel Outperformed Market Competitive Set RevPAR - 114% Index on TTM August 2020
  • Operating as the Leading Hotel in the Market Competitive Set for Year-to-Date RevPAR
  • Operational Upside for Prospective Hands-On Owner-Operator Investor
  • 68-Room, Interior Corridor, Midscale Hotel Built in 2006

Exclusively Listed By

Hotel-Motel

La Quinta Inn & Suites Houma

Listing Price: $3,300,000

Cap Rate
11.23%
Number of Rooms
68
RevPAR
$45
Gross SF
46,590
Price/Room
$48,529
RRM
2.94
Price/Gross SF
$70.83
Year Built
2006

Investment Highlights

  • Closest Hotel to Southland Mall, Located Less Than One Mile Away
  • Priced Significantly Below Replacement Cost at $48,529 Per Key
  • Hotel Outperformed Market Competitive Set RevPAR - 114% Index on TTM August 2020
  • Operating as the Leading Hotel in the Market Competitive Set for Year-to-Date RevPAR
  • Operational Upside for Prospective Hands-On Owner-Operator Investor
  • 68-Room, Interior Corridor, Midscale Hotel Built in 2006

Investment Overview

Marcus & Millichap's National Hospitality Group, as exclusive representative of the Seller, is pleased to present for sale to qualified investors the La Quinta Inn & Suites in Houma, Louisiana. The midscale hotel is part of Wyndham Hotels and Resorts, the largest hotel franchise company in the world. The 68-room property is offered at $3,300,000 or $48,529 per key. In addition, the limited-service hotel is listed below 3x gross room revenue, based on the most recent trailing twelve months, August 2020.

Located in the south-central coastal area of the State, Houma is highly dependent on the oil and gas extraction industry in the Gulf of Mexico and the spillover sectors such as machinery, fabrication, shipbuilding and other marine related transportation. As a result, hotel demand in this area is less affected by the pandemic. Also, the La Quinta Inn & Suites Houma further benefits from additional leisure travel brought on due to the relation to Southland Mall.

Priced at a 11.23 percent capitalization rate, the three-story, 2006 constructed hotel offers a new investor(s) the opportunity to acquire an upwardly trending asset at a price, that is below replacement costs. Furthermore, an owner-operator can further take full advantage of reducing management and other labor costs thus, maximizing profits.

According to the August 2020 STR report, the property showcased a monthly $96.86 RevPar, a 220% change from the previous year. Furthermore, year to date 2020, the hotel is up 71% in RevPar vs the same period 2019. Additionally, with 161 percent RevPar market penetration index for the month of August, and 123% RevPAR index year to date, the subject property is the #1 RevPar leader in the market competitive set in 2020; this further sets the hotel to capitalize on future economic developments.

On the horizon, the area should see a significant increase in demand from a $35 Million to the South Lafourche Leonard Miller Junior Airport that currently brings in 140,000 passengers/year, more than half (approx. 80,000) are Chevron-related employees. In addition, Energy World LNG project is in the planning stage of an $888 Million export facility that will sit on 150 acres just south of the La Quinta Houma which is set to attract major business demand to the surrounding area.

The expenses include provisions for a four percent capital reserve and a three percent management fee. The hotel is offered fee simple, unencumbered by a management contact and/or debt.

Exclusively Listed By

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