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Hotel-Motel

Quality Inn Baytown

5222 Interstate 10 East, Baytown, TX 77521

Listing Price: $3,150,000

Cap Rate
2.58%
Number of Rooms
61
Price/Room
$51,639
Year Built
1996

Investment Overview

As the exclusive representative of the seller, Marcus & Millichap's National Hospitality Group is pleased to present for sale to qualified investors the Quality Inn Baytown – Houston East. This Choice Hotels International-branded Hotel is offered at $3,150,000 or $51,639 per key. This three-story, 61-room Hotel sits on 1.5 acres within the Houston-Woodlands-Sugar Land metropolitan statistical area, Texas’ second largest MSA. The Property is located, with great visibility, off Interstate 10, which records over 84,000 daily travelers. The prime location offers access to many key demand drivers in the area such as the Houston Raceway Park – Houston’s only major multi-purpose motorsports venue (8.5 miles), San Jacinto Battleground Historic Site – a 1,200 acre historic park (16.7 miles), the Port of Houston – one of the world’s largest ports (21.4 miles), the Baytown Nature Center – a 450 acre peninsula along the Houston Ship Channel (6.4 miles), and San Jacinto College – which enrolls over 28,500 students (18.1 miles). Furthermore, Baytown sits on the upper edge of Galveston Bay and is home to Exxon Mobil’s complex, one of the nation’s biggest refinery (5.5 miles); allowing the Hotel to increase revenues through contract business with major companies on the Goose Creek Oil Field. In 2019, the Hotel’s RevPAR was approximately $34 and achieved revenues above $750,000. In the same period, the Property performed in line with the STR-defined competitive market set and attained a RevPAR penetration index of 104 percent. Currently, the Property is penetrating the market with a RevPAR of 96 percent RPI. As Oil & Gas production increases in the nearby market, a growing opportunity exists for a new investor to maximize profits through moderate cost control initiatives and various yield management strategies. Current expenses include provisions for a 4 percent capital replacement reserve. The Hotel is offered fee simple, unencumbered by a management contract or debt. A new investor can expect PIP upon transfer of ownership. Contact the listing agent for more information.

Investment Highlights

  • Priced Below Replacement Cost at $51,639 per key
  • Three-Story, 61-Room, Midscale Hotel in Houston- Baytown- Sugar Land MSA
  • Located less than 30 min from Downtown Houston with Prominent Highway Visibility off on I-10
  • Implementation of Improved Revenue Management Will Increase Overall Profitability
  • New Expansion Projects Continues in Baytown from Chevron Phillips Chemical Company LP & Phillips 66

Exclusively Listed By

Listing Price: $3,150,000

Cap Rate
2.58%
Number of Rooms
61
Price/Room
$51,639
Year Built
1996

Investment Highlights

  • Priced Below Replacement Cost at $51,639 per key
  • Three-Story, 61-Room, Midscale Hotel in Houston- Baytown- Sugar Land MSA
  • Located less than 30 min from Downtown Houston with Prominent Highway Visibility off on I-10
  • Implementation of Improved Revenue Management Will Increase Overall Profitability
  • New Expansion Projects Continues in Baytown from Chevron Phillips Chemical Company LP & Phillips 66

Investment Overview

As the exclusive representative of the seller, Marcus & Millichap's National Hospitality Group is pleased to present for sale to qualified investors the Quality Inn Baytown – Houston East. This Choice Hotels International-branded Hotel is offered at $3,150,000 or $51,639 per key. This three-story, 61-room Hotel sits on 1.5 acres within the Houston-Woodlands-Sugar Land metropolitan statistical area, Texas’ second largest MSA. The Property is located, with great visibility, off Interstate 10, which records over 84,000 daily travelers. The prime location offers access to many key demand drivers in the area such as the Houston Raceway Park – Houston’s only major multi-purpose motorsports venue (8.5 miles), San Jacinto Battleground Historic Site – a 1,200 acre historic park (16.7 miles), the Port of Houston – one of the world’s largest ports (21.4 miles), the Baytown Nature Center – a 450 acre peninsula along the Houston Ship Channel (6.4 miles), and San Jacinto College – which enrolls over 28,500 students (18.1 miles). Furthermore, Baytown sits on the upper edge of Galveston Bay and is home to Exxon Mobil’s complex, one of the nation’s biggest refinery (5.5 miles); allowing the Hotel to increase revenues through contract business with major companies on the Goose Creek Oil Field. In 2019, the Hotel’s RevPAR was approximately $34 and achieved revenues above $750,000. In the same period, the Property performed in line with the STR-defined competitive market set and attained a RevPAR penetration index of 104 percent. Currently, the Property is penetrating the market with a RevPAR of 96 percent RPI. As Oil & Gas production increases in the nearby market, a growing opportunity exists for a new investor to maximize profits through moderate cost control initiatives and various yield management strategies. Current expenses include provisions for a 4 percent capital replacement reserve. The Hotel is offered fee simple, unencumbered by a management contract or debt. A new investor can expect PIP upon transfer of ownership. Contact the listing agent for more information.

Exclusively Listed By

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