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Hotel-Motel

Holiday Inn Express & Suites Lubbock West

6023 45th St, Lubbock, TX 79407

Listing Price: $8,700,000

Cap Rate
7.86%
Number of Rooms
82
RevPAR
$64
Price/Room
$106,098
RRM
4.42
Year Built
2010

Investment Overview

As the exclusive representative of the seller, Marcus & Millichap’s National Hospitality Division is pleased to present for sale to quali?ed investors the Holiday Inn Express & Suites Lubbock West (‘Hotel’ or ‘Property’). The IHG-branded Hotel is offered at $8,700,000 or $106,097 per key. The Holiday Inn Express & Suites Lubbock West is an 82-room, four-story, upper-midscale Hotel, built in 2010, renovated in 2020 and 2021, and located in Lubbock, Texas. Renovations in 2021 included undergoing a complete Formula Blue Property Improvement Plan. The Property’s common area amenities include a heated indoor pool with a whirlpool, ?tness center, meeting room, and a business center. Each room features amenities such as blackout shades, an ironing board with iron, a mini-refrigerator, microwave, coffee machine, work desk with a lamp, and ?at-screen television. 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. Located just four miles from the Property, Texas Tech University is the 6th 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. A major demand generator on the weekends of home games, Jones AT&T Stadium, the home to the Red Raider’s Football Team, has a maximum capacity of 60,454 that is routinely ?lled. The Hotel sits on 1.8 acres at the interchange of Highway 62 and Loop 289, providing excellent transient visibility and accessibility. The strategic location places the Property near major demand generators such as Texas Tech University (7.7 miles), Lubbock Christian University (3.3 miles), Lubbock Preston Smith International Airport (12.7 miles), and University Medical Center (3.8 miles). The limited-service Hotel recorded room revenues of over $1.92 million through 2021, a signi?cant jump of 93.6 percent from year-end 2020. In the same period, the Hotel maintained a healthy cash ?ow of nearly $668.5 thousand or 34.4 percent as a percentage of total income, after a 4 percent capital replacement reserve and 3 percent management fee. Furthermore, the Hotel has slightly outperformed the STR-de?ned competitive set and posted a RevPAR penetration index premium of 5 percent. A minimum premium suggests an opportunity to increase RevPAR through operational initiatives and aggressive revenue strategies to further capture market share, especially with the recent completion of a Formula Blue PIP.

Investment Highlights

  • 82-Room, Four-Story, Upper-Midscale Hotel Built in 2010
  • Excellent Visibility and Accessibility from Highway 62 and Loop 289
  • Nearby Demand Generators Include Texas Tech University (7.7 miles), Lubbock Christian University (3.3 miles), Lubbock Preston Smith International Airport (12.7 miles), and University Medical Center
  • Over 90 Percent RevPAR Increase from 2020
  • Cash-Flowing Asset – 2021 Room Revenues of Over $1.92 Million and a Net Operating Income of $668.5 Thousand or 34.4 Percent of Gross Revenues

Exclusively Listed By

Financing By

Hotel-Motel

Holiday Inn Express & Suites Lubbock West

Listing Price: $8,700,000

Cap Rate
7.86%
Number of Rooms
82
RevPAR
$64
Price/Room
$106,098
RRM
4.42
Year Built
2010

Investment Highlights

  • 82-Room, Four-Story, Upper-Midscale Hotel Built in 2010
  • Excellent Visibility and Accessibility from Highway 62 and Loop 289
  • Nearby Demand Generators Include Texas Tech University (7.7 miles), Lubbock Christian University (3.3 miles), Lubbock Preston Smith International Airport (12.7 miles), and University Medical Center
  • Over 90 Percent RevPAR Increase from 2020
  • Cash-Flowing Asset – 2021 Room Revenues of Over $1.92 Million and a Net Operating Income of $668.5 Thousand or 34.4 Percent of Gross Revenues

Investment Overview

As the exclusive representative of the seller, Marcus & Millichap’s National Hospitality Division is pleased to present for sale to quali?ed investors the Holiday Inn Express & Suites Lubbock West (‘Hotel’ or ‘Property’). The IHG-branded Hotel is offered at $8,700,000 or $106,097 per key. The Holiday Inn Express & Suites Lubbock West is an 82-room, four-story, upper-midscale Hotel, built in 2010, renovated in 2020 and 2021, and located in Lubbock, Texas. Renovations in 2021 included undergoing a complete Formula Blue Property Improvement Plan. The Property’s common area amenities include a heated indoor pool with a whirlpool, ?tness center, meeting room, and a business center. Each room features amenities such as blackout shades, an ironing board with iron, a mini-refrigerator, microwave, coffee machine, work desk with a lamp, and ?at-screen television. 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. Located just four miles from the Property, Texas Tech University is the 6th 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. A major demand generator on the weekends of home games, Jones AT&T Stadium, the home to the Red Raider’s Football Team, has a maximum capacity of 60,454 that is routinely ?lled. The Hotel sits on 1.8 acres at the interchange of Highway 62 and Loop 289, providing excellent transient visibility and accessibility. The strategic location places the Property near major demand generators such as Texas Tech University (7.7 miles), Lubbock Christian University (3.3 miles), Lubbock Preston Smith International Airport (12.7 miles), and University Medical Center (3.8 miles). The limited-service Hotel recorded room revenues of over $1.92 million through 2021, a signi?cant jump of 93.6 percent from year-end 2020. In the same period, the Hotel maintained a healthy cash ?ow of nearly $668.5 thousand or 34.4 percent as a percentage of total income, after a 4 percent capital replacement reserve and 3 percent management fee. Furthermore, the Hotel has slightly outperformed the STR-de?ned competitive set and posted a RevPAR penetration index premium of 5 percent. A minimum premium suggests an opportunity to increase RevPAR through operational initiatives and aggressive revenue strategies to further capture market share, especially with the recent completion of a Formula Blue PIP.

Exclusively Listed By

Financing By

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