Skip to main content

Hotel-Motel

Best Western Borger Inn

206 South Cedar Street, Borger, TX 79007

Listing Price: $3,700,000

Cap Rate
8.49%
Number of Rooms
60
RevPAR
$51
Price/Room
$61,667
RRM
3.55
Year Built
2001

Investment Overview

As the exclusive representative of the seller, Marcus & Millichap's National Hospitality Division is pleased to present for sale to qualified investors the Best Western Borger Inn (‘Hotel’ or ‘Property’). The Hotel is offered at $3,700,000 or $61,667 per key. The Hotel sits on 1.9 acres off South Cedar Street, which records about 15,000 cars per day in Borger, Texas, less than 45 minutes from Amarillo. This ideal location is nearby the phase one stage of the Borger Business Park (3.5 miles), over 120 acres for commercial development, with over 34 million dollars invested by the city. Furthermore, Phillips 77, Nutrien AG, and Franks Phillips College are all less than five miles from the Property. This two-story, 60-room Hotel presents a new investor the chance to acquire an opportunistic asset with upside potential. For the twelve-month period ending May 2021, the Property underperformed the STR defined market competitive set and posted an 81 percent RevPAR penetration index. Current revenues are trending upwards and have increased by 32 percent when comparing the trailing twelve month period ending May 2021 revenues to year end 2020. If this trend continues, overall value of the Property will increase as the Hotel expands market penetration. Additionally, the Hotel recently completed major renovations, allowing a new investor the opportunity to attain this asset with minimal PIP. Current expenses include provisions for a four percent capital replacement reserve. The hotel is offered fee simple, unencumbered by a management contract or debt.

Investment Highlights

  • Two-Story, 60-Room, Midscale Hotel Built in 2001
  • Priced Below Replacement Cost at $61,667 Per Key
  • Excellent Location near Borger Business Park, Phillips 77, Nutrien AG, and Franks Phillips College
  • Offers Significant Upside to Increase Room Revenue to be Competitive with the Market
  • Recently Completed Renovation – Minimal PIP Expected for New Investor
  • Forty-Five Minutes from Amarillo
  • Property Exhibiting Strong Increasing Revenues in 2021
  • Offered Fee Simple, Unencumbered by Management Contract or Debt

Exclusively Listed By

Financing By

Hotel-Motel

Best Western Borger Inn

Listing Price: $3,700,000

Cap Rate
8.49%
Number of Rooms
60
RevPAR
$51
Price/Room
$61,667
RRM
3.55
Year Built
2001

Investment Highlights

  • Two-Story, 60-Room, Midscale Hotel Built in 2001
  • Priced Below Replacement Cost at $61,667 Per Key
  • Excellent Location near Borger Business Park, Phillips 77, Nutrien AG, and Franks Phillips College
  • Offers Significant Upside to Increase Room Revenue to be Competitive with the Market
  • Recently Completed Renovation – Minimal PIP Expected for New Investor
  • Forty-Five Minutes from Amarillo
  • Property Exhibiting Strong Increasing Revenues in 2021
  • Offered Fee Simple, Unencumbered by Management Contract or Debt

Investment Overview

As the exclusive representative of the seller, Marcus & Millichap's National Hospitality Division is pleased to present for sale to qualified investors the Best Western Borger Inn (‘Hotel’ or ‘Property’). The Hotel is offered at $3,700,000 or $61,667 per key. The Hotel sits on 1.9 acres off South Cedar Street, which records about 15,000 cars per day in Borger, Texas, less than 45 minutes from Amarillo. This ideal location is nearby the phase one stage of the Borger Business Park (3.5 miles), over 120 acres for commercial development, with over 34 million dollars invested by the city. Furthermore, Phillips 77, Nutrien AG, and Franks Phillips College are all less than five miles from the Property. This two-story, 60-room Hotel presents a new investor the chance to acquire an opportunistic asset with upside potential. For the twelve-month period ending May 2021, the Property underperformed the STR defined market competitive set and posted an 81 percent RevPAR penetration index. Current revenues are trending upwards and have increased by 32 percent when comparing the trailing twelve month period ending May 2021 revenues to year end 2020. If this trend continues, overall value of the Property will increase as the Hotel expands market penetration. Additionally, the Hotel recently completed major renovations, allowing a new investor the opportunity to attain this asset with minimal PIP. Current expenses include provisions for a four percent capital replacement reserve. The hotel is offered fee simple, unencumbered by a management contract or debt.

Exclusively Listed By

Financing By

MM Texture Background
MM Textured Background Lower