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Hotel-Motel

SureStay Hotel Laredo

4820 San Bernardo Ave, Laredo, TX 78041

Listing Price: $3,200,000

Cap Rate
7.02%
Number of Rooms
72
RevPAR
$36
Price/Room
$44,444
Year Built
1978

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 SureStay Hotel in Laredo, Texas (‘Hotel’ or ‘Property’). The Best Western International-branded Hotel is offered at $3,200,000 or $44,444 per key. The SureStay Hotel Laredo is a two-story, Best Western-branded Property. The Hotel was built in 1978 and is comprised of four buildings. In 2017, the Property was thoroughly renovated and converted to the SureStay brand. The Hotel features an onsite laundry facility, business center, restaurant/bar space, and a one-bedroom manager's apartment. The Property maintains a room mix that includes both king-size rooms and double queen size rooms, each equipped with various room amenities such as microwaves, flat-screen televisions, and refrigerators. Laredo, Texas is home to a philharmonic orchestra, a semiprofessional soccer team, and Texas A&M International University, which has an enrollment of 7,600 students. With more than 260,000 residents, it's the tenth-largest city in Texas and the second-most populated on the U.S. Mexico border, behind El Paso. The SureStay Hotel Laredo is located at 4820 San Bernardo Avenue and near shopping, dining, and entertainment. The regional economy is fueled by the border and is the largest border crossing for goods traded between the United States and Mexico, and recently surpassed Los Angeles as the largest port in the United States. On average, each year the port supports more than two million 18-wheelers on Laredo's international bridges transporting everything from automobile parts to vegetables. Annually, the city hosts thousands of spectators at the Laredo Birding Festival and a Mardi Gras-like celebration of George Washington's birthday which includes pageants, balls, and parades. The Laredo International Airport is less than six miles from the Property and has daily flights commuting to several regions including Dallas, Fort Worth, Houston, and Las Vegas. Through the trailing 12-month period ending July 2021, the Hotel achieved $881,559 in room revenue, resulting in a net operating income of approximately 28 percent of total revenue, which translates to about $250,550, after a four percent capital replacement reserve. New management can rent the unoccupied restaurant and bar space to increase gross income.

Investment Highlights

  • Two-Story, 72-Room, Exterior-Corridor Hotel with Two-Bedroom Managers Quarters and Restaurant/Bar Space
  • Priced Below Replacement Cost at $44,444 Per Key
  • Well-Positioned with Excellent Visibility from Interstate 35
  • Less than Six Miles from Laredo International Airport
  • 121 Percent Hotel RevPAR Compared to Competitive Set
  • Ability to Increase Net Operating Income with Implementations of Cost Control Strategies

Exclusively Listed By

Financing By

Listing Price: $3,200,000

Cap Rate
7.02%
Number of Rooms
72
RevPAR
$36
Price/Room
$44,444
Year Built
1978

Investment Highlights

  • Two-Story, 72-Room, Exterior-Corridor Hotel with Two-Bedroom Managers Quarters and Restaurant/Bar Space
  • Priced Below Replacement Cost at $44,444 Per Key
  • Well-Positioned with Excellent Visibility from Interstate 35
  • Less than Six Miles from Laredo International Airport
  • 121 Percent Hotel RevPAR Compared to Competitive Set
  • Ability to Increase Net Operating Income with Implementations of Cost Control 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 SureStay Hotel in Laredo, Texas (‘Hotel’ or ‘Property’). The Best Western International-branded Hotel is offered at $3,200,000 or $44,444 per key. The SureStay Hotel Laredo is a two-story, Best Western-branded Property. The Hotel was built in 1978 and is comprised of four buildings. In 2017, the Property was thoroughly renovated and converted to the SureStay brand. The Hotel features an onsite laundry facility, business center, restaurant/bar space, and a one-bedroom manager's apartment. The Property maintains a room mix that includes both king-size rooms and double queen size rooms, each equipped with various room amenities such as microwaves, flat-screen televisions, and refrigerators. Laredo, Texas is home to a philharmonic orchestra, a semiprofessional soccer team, and Texas A&M International University, which has an enrollment of 7,600 students. With more than 260,000 residents, it's the tenth-largest city in Texas and the second-most populated on the U.S. Mexico border, behind El Paso. The SureStay Hotel Laredo is located at 4820 San Bernardo Avenue and near shopping, dining, and entertainment. The regional economy is fueled by the border and is the largest border crossing for goods traded between the United States and Mexico, and recently surpassed Los Angeles as the largest port in the United States. On average, each year the port supports more than two million 18-wheelers on Laredo's international bridges transporting everything from automobile parts to vegetables. Annually, the city hosts thousands of spectators at the Laredo Birding Festival and a Mardi Gras-like celebration of George Washington's birthday which includes pageants, balls, and parades. The Laredo International Airport is less than six miles from the Property and has daily flights commuting to several regions including Dallas, Fort Worth, Houston, and Las Vegas. Through the trailing 12-month period ending July 2021, the Hotel achieved $881,559 in room revenue, resulting in a net operating income of approximately 28 percent of total revenue, which translates to about $250,550, after a four percent capital replacement reserve. New management can rent the unoccupied restaurant and bar space to increase gross income.

Exclusively Listed By

Financing By

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