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Hotel-Motel

Best Western Palestine Inn

1601 West Palestine Avenue, Palestine, TX 75801

Listing Price: $3,000,000

Cap Rate
8.45%
Number of Rooms
66
RevPAR
$35
Price/Room
$45,455
RRM
3.53
Year Built
1982

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 Palestine Inn (‘Hotel’ or ‘Property’). The Best Western International-branded Hotel is offered at $3,000,000 or $45,455 per key. Palestine, Texas is located in west Texas, equidistant from the major cities of Dallas, and Houston, Texas and Shreveport, Louisiana. The city is the county seat of Anderson County and comprises the Palestine Micropolitan Statistical Area. The area is most notable for its natural environment and historic landmarks. Every year, Palestine holds a festival to celebrate the Dogwood floral blooming season at the Davey Dogwood Park. The 200-acre woodland area, located less than four miles from the Hotel, is a popular nature site for hiking, bicycling, and other outdoor recreational activities. Anderson County preserves over 25 historic sites on the National Register of Historic Places, making Palestine a favored stop amongst travelers. The Hotel sits on 2.79 acres just off Highway 79, a 275 mile route that connects Austin, Texas in the southwest to Shreveport, Louisiana in the northeast. The Property’s location places it in an ideal spot for business and leisure travelers. The largest employers in the area include Texas Department of Criminal Justice (12.4 miles), 5J Trucking (4.8 miles), Palestine Regional Medical Center (2.3 miles), Sanderson Farms (4.3 miles), and Walmart Superstore (3.3 miles) and Distribution Center (3.6 miles). The Columbia Scientific Balloon Facility, an affiliate of NASA, is less than five miles away. The Hotel also benefits from the room demand generated by the University of Texas at Tyler – Palestine Campus, which is less than 1.5 miles away. The Hotel has performed in line with the STR defined competitive set and posted a RevPAR penetration index of 95 percent in 2019, as well as room revenues over $950 thousand and a net operating income over $368.5 thousand or 38.7 percent of gross revenues; after a 4 percent reserve for capital replacements. The Property includes owner’s living quarters, making this offering ideal for a hands-on owner-operator looking for an investment below replacement cost with no change of ownership PIP.

Investment Highlights

  • 66-Room, Exterior-Corridor, Limited-Service Hotel with Owner's Living Quarters
  • Priced Below Replacement Costs at $45,455 Per Key
  • Qualifies for Automatic Transfer of Best Western Franchise
  • Excellent Location off Highway 79 Near a Variety of Demand Generators
  • 3.15 Room Revenue Multiplier on 2019 Revenues

Exclusively Listed By

Financing By

Listing Price: $3,000,000

Cap Rate
8.45%
Number of Rooms
66
RevPAR
$35
Price/Room
$45,455
RRM
3.53
Year Built
1982

Investment Highlights

  • 66-Room, Exterior-Corridor, Limited-Service Hotel with Owner's Living Quarters
  • Priced Below Replacement Costs at $45,455 Per Key
  • Qualifies for Automatic Transfer of Best Western Franchise
  • Excellent Location off Highway 79 Near a Variety of Demand Generators
  • 3.15 Room Revenue Multiplier on 2019 Revenues

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 Palestine Inn (‘Hotel’ or ‘Property’). The Best Western International-branded Hotel is offered at $3,000,000 or $45,455 per key. Palestine, Texas is located in west Texas, equidistant from the major cities of Dallas, and Houston, Texas and Shreveport, Louisiana. The city is the county seat of Anderson County and comprises the Palestine Micropolitan Statistical Area. The area is most notable for its natural environment and historic landmarks. Every year, Palestine holds a festival to celebrate the Dogwood floral blooming season at the Davey Dogwood Park. The 200-acre woodland area, located less than four miles from the Hotel, is a popular nature site for hiking, bicycling, and other outdoor recreational activities. Anderson County preserves over 25 historic sites on the National Register of Historic Places, making Palestine a favored stop amongst travelers. The Hotel sits on 2.79 acres just off Highway 79, a 275 mile route that connects Austin, Texas in the southwest to Shreveport, Louisiana in the northeast. The Property’s location places it in an ideal spot for business and leisure travelers. The largest employers in the area include Texas Department of Criminal Justice (12.4 miles), 5J Trucking (4.8 miles), Palestine Regional Medical Center (2.3 miles), Sanderson Farms (4.3 miles), and Walmart Superstore (3.3 miles) and Distribution Center (3.6 miles). The Columbia Scientific Balloon Facility, an affiliate of NASA, is less than five miles away. The Hotel also benefits from the room demand generated by the University of Texas at Tyler – Palestine Campus, which is less than 1.5 miles away. The Hotel has performed in line with the STR defined competitive set and posted a RevPAR penetration index of 95 percent in 2019, as well as room revenues over $950 thousand and a net operating income over $368.5 thousand or 38.7 percent of gross revenues; after a 4 percent reserve for capital replacements. The Property includes owner’s living quarters, making this offering ideal for a hands-on owner-operator looking for an investment below replacement cost with no change of ownership PIP.

Exclusively Listed By

Financing By

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