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Hotel-Motel

Motel 6 Lubbock

909 66th Street, Lubbock, TX 79412

Listing Price: $4,000,000

Cap Rate
2.84%
Number of Rooms
138
RevPAR
$21
Price/Room
$28,986
RRM
3.77
Year Built
1979

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 Motel 6 in Lubbock, Texas (‘Hotel’ or ‘Property’). The G6 Hospitality branded 181 rooms Hotel (of which 43 rooms are non-operational and out of order/need full renovation) is offered for sale at $4,000,000 or $28,986 per operational key, and $22,100 per key (assuming 181 total keys). Lubbock, Texas is the 11th most populous city in the State and the county seat of Lubbock County. The city resides in the northwest region of the State, 118 miles north of Midland and 124 miles south of Amarillo. Lubbock County is included in the Permian Basin, which accounts for nearly 40 percent of all oil production in the United States and nearly 15 percent of its natural gas production, according to the Federal Reserve Bank of Dallas. Additionally, the Hotel is one of the closest economy branded Hotel’s to Texas Tech University. Texas Tech University is the 7th largest university in Texas, recording over 40,000 undergrad students. The University hosts hundreds of sporting and educational events each year, prompting the hospitality demand in the vicinity. Jones AT&T Stadium, the home to the Red Raider’s Football Team, has a maximum capacity of 60,454 – which is often reached during home games. The Hotel sits on 2.99 acres at the interchange of Interstate 27 and Loop 289, which records over 97,600 vehicles per day. The Hotel’s strategic location allows access to the major demand generators in the area such as Texas Tech University (4.5 miles), Lubbock Christian University (8.3 miles), Silent Wings Museum (9.3 miles), and University Medical Center (6.8 miles). This two-story, 181-room exterior corridor Hotel presents a new investor the chance to acquire an opportunistic asset with major upside potential by renovating the 43 rooms that are currently out of order, and add then to the total inventory.. The Property is currently underperforming the competitive set in RevPAR with a 77.5 percent RevPAR penetration index through twelve-months ending July 2021. Additionally, a deeper look at departmental expenses shows current management inefficiencies, offering a new owner-operator the opportunity to implement strategic cost control strategies to increase overall value.

Investment Highlights

  • Two-Story, 181-Room (138 Operational), Exterior-Corridor, G6 Hospitality-Branded Hotel
  • Priced Below Replacement Cost at $28,986 Per Key Operational Key / $22,100 Per Key (Based on Total 181 Room Count)
  • Excellent Location at the Interchange of Interstate 27 and Loop 289
  • One of the Closest Economy Hotels to Texas Tech University
  • Value-Add Opportunity to Increase Market Penetration by Implementing Better Management Strategies

Exclusively Listed By

Financing By

Listing Price: $4,000,000

Cap Rate
2.84%
Number of Rooms
138
RevPAR
$21
Price/Room
$28,986
RRM
3.77
Year Built
1979

Investment Highlights

  • Two-Story, 181-Room (138 Operational), Exterior-Corridor, G6 Hospitality-Branded Hotel
  • Priced Below Replacement Cost at $28,986 Per Key Operational Key / $22,100 Per Key (Based on Total 181 Room Count)
  • Excellent Location at the Interchange of Interstate 27 and Loop 289
  • One of the Closest Economy Hotels to Texas Tech University
  • Value-Add Opportunity to Increase Market Penetration by Implementing Better Management Strategies

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 Motel 6 in Lubbock, Texas (‘Hotel’ or ‘Property’). The G6 Hospitality branded 181 rooms Hotel (of which 43 rooms are non-operational and out of order/need full renovation) is offered for sale at $4,000,000 or $28,986 per operational key, and $22,100 per key (assuming 181 total keys). Lubbock, Texas is the 11th most populous city in the State and the county seat of Lubbock County. The city resides in the northwest region of the State, 118 miles north of Midland and 124 miles south of Amarillo. Lubbock County is included in the Permian Basin, which accounts for nearly 40 percent of all oil production in the United States and nearly 15 percent of its natural gas production, according to the Federal Reserve Bank of Dallas. Additionally, the Hotel is one of the closest economy branded Hotel’s to Texas Tech University. Texas Tech University is the 7th largest university in Texas, recording over 40,000 undergrad students. The University hosts hundreds of sporting and educational events each year, prompting the hospitality demand in the vicinity. Jones AT&T Stadium, the home to the Red Raider’s Football Team, has a maximum capacity of 60,454 – which is often reached during home games. The Hotel sits on 2.99 acres at the interchange of Interstate 27 and Loop 289, which records over 97,600 vehicles per day. The Hotel’s strategic location allows access to the major demand generators in the area such as Texas Tech University (4.5 miles), Lubbock Christian University (8.3 miles), Silent Wings Museum (9.3 miles), and University Medical Center (6.8 miles). This two-story, 181-room exterior corridor Hotel presents a new investor the chance to acquire an opportunistic asset with major upside potential by renovating the 43 rooms that are currently out of order, and add then to the total inventory.. The Property is currently underperforming the competitive set in RevPAR with a 77.5 percent RevPAR penetration index through twelve-months ending July 2021. Additionally, a deeper look at departmental expenses shows current management inefficiencies, offering a new owner-operator the opportunity to implement strategic cost control strategies to increase overall value.

Exclusively Listed By

Financing By

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