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Hotel-Motel

Pearsall Inn & Suites

1707 West Comal Street, Pearsall, TX 78061

Listing Price: $1,290,000

Cap Rate
10.40%
Number of Rooms
40
RevPAR
$21
Price/Room
$32,250
RRM
4.22
Year Built
2012

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 Pearsall Inn & Suites (‘Hotel’ or ‘Property’). The independent Hotel is offered at $1,290,000 or $32,250 per key. Pearsall, Texas is located approximately 55 miles south of San Antonio, and 30 miles north of Cotulla, Texas, along Interstate Highway 35. Pearsall is in the heart of Eagle Ford Shale, presumably the largest shale formation in the United States. Oil and natural gas exploration have resulted in tremendous amount of room night demand from employees working in the Eagle Ford Shale area. In 2020, gas production hit a four year high in the area and produced over 1.295 billion cubic feet. The Pearsall Inn & Suites is located off Interstate Highway 35 and Comal Street, recording over 27,250 vehicles per day at the intersection. The Hotel’s ideal location is near a multitude of oil and gas drilling sites as well as many demand generators in the vicinity such as the Frio Regional Hospital (0.5 miles), Longhorn Athletic Field (0.7 miles), and Pearsall Parks and Recreation (0.9 miles). The Property maintains a two-bedroom, two-bathroom owner’s quarters, making this investment ideal for a hands-on-owner-operator. The Hotel has benefitted greatly from Oil and Gas contracts, which has led to an increase in occupancy through the trailing twelve months ending September 2021. In the same period, the Hotel recorded a 45 percent growth in revenues compared to year-end 2020. A new investor has the freedom to implement better management to increase net operating income and overall value.

Investment Highlights

  • Two-Story, 40-Room, Exterior-Corridor Hotel with Owner's Living Quarters
  • Priced Below Replacement Cost at $32,250 Per Key
  • Located within the Eagle Ford Shale
  • Retains Oil and Gas Hospitality Contracts through February 2022 with Potential Extensions
  • 45 Percent Growth in Revenues Through September 2021 Compared to Year-End 2020
  • Upside Potential for New Management to Increase Net Operating Income and Overall Value

Exclusively Listed By

Hotel-Motel

Pearsall Inn & Suites

Listing Price: $1,290,000

Cap Rate
10.40%
Number of Rooms
40
RevPAR
$21
Price/Room
$32,250
RRM
4.22
Year Built
2012

Investment Highlights

  • Two-Story, 40-Room, Exterior-Corridor Hotel with Owner's Living Quarters
  • Priced Below Replacement Cost at $32,250 Per Key
  • Located within the Eagle Ford Shale
  • Retains Oil and Gas Hospitality Contracts through February 2022 with Potential Extensions
  • 45 Percent Growth in Revenues Through September 2021 Compared to Year-End 2020
  • Upside Potential for New Management to Increase Net Operating Income and Overall Value

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 Pearsall Inn & Suites (‘Hotel’ or ‘Property’). The independent Hotel is offered at $1,290,000 or $32,250 per key. Pearsall, Texas is located approximately 55 miles south of San Antonio, and 30 miles north of Cotulla, Texas, along Interstate Highway 35. Pearsall is in the heart of Eagle Ford Shale, presumably the largest shale formation in the United States. Oil and natural gas exploration have resulted in tremendous amount of room night demand from employees working in the Eagle Ford Shale area. In 2020, gas production hit a four year high in the area and produced over 1.295 billion cubic feet. The Pearsall Inn & Suites is located off Interstate Highway 35 and Comal Street, recording over 27,250 vehicles per day at the intersection. The Hotel’s ideal location is near a multitude of oil and gas drilling sites as well as many demand generators in the vicinity such as the Frio Regional Hospital (0.5 miles), Longhorn Athletic Field (0.7 miles), and Pearsall Parks and Recreation (0.9 miles). The Property maintains a two-bedroom, two-bathroom owner’s quarters, making this investment ideal for a hands-on-owner-operator. The Hotel has benefitted greatly from Oil and Gas contracts, which has led to an increase in occupancy through the trailing twelve months ending September 2021. In the same period, the Hotel recorded a 45 percent growth in revenues compared to year-end 2020. A new investor has the freedom to implement better management to increase net operating income and overall value.

Exclusively Listed By

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