Hotel-Motel

Country Inn & Suites by Radisson, San Marcos, TX

1560 I-35, San Marcos, TX 78666

Listing Price: $6,300,000

Cap Rate
4.91%
Number of Rooms
84
RevPAR
$52
Gross SF
47,992
Price/Room
$75,000
RRM
3.97
Price/Gross SF
$131.27
Year Built
2009

Investment Overview

Marcus & Millichaps National Hospitality Group, as an exclusive representative of the seller, is pleased to present for sale to qualified investors the Country Inn & Suites San Marcos. The Radisson-branded hotel is priced at $6,300,000 or $75,000 price per room. Priced at a 3.94 room revenue multiplier based on year-end 2019 room revenues, this 2009-build hotel is positioned along Interstate 35 near the interchange with Highway 123.

The four-story property consists of 84 guest rooms and presents a new owner the opportunity to acquire a hospitality asset within the Austin MSA. This value-add asset is being sold at a price below replacement cost and allows a new owner the ability maximize profits through a reduction in management costs for the property. The hotel is well-equipped with spacious guest rooms, fitness and business center, an indoor pool, and meeting facility.

For the twelve-month period ending December 2019, the hotel reached $1,585,000 in room revenue and over $1,600,000 in gross revenue. The property achieved over $300,000 in net operating income for year-end 2019 after interest, taxes, depreciation, and amortization; this equates to approximately 19 percent of total revenue after debt service. Through a strong focus on increasing the hotels operational efficiency, a new owner can see a significant boost in hotel performance and an increase in the hotels EBITDA. With an 84% RevPAR index, the hotel has under performed its market competitive set and presents significant upside potential to a new owner through additional marketing to increase demand.

The expenses include provisions for a four percent reserve for capital replacement. The hotel is offered fee simple, unencumbered by a management contract and debt. New will be required to complete Radisson Hotel Group, Country Inn & Suites transfer PIP, which is estimated to cost $300,000-$350,000.

Investment Highlights

  • Located In the Second Fastest Growing County In The Country
  • 84-Room, Interior Corridor, Upper Midscale Hotel Built in 2009
  • Located Four Miles from San Marcos Premium Outlets and Texas State University
  • Well Positioned with Excellent Visibility from Interstate 35
  • Operational Upside for Prospective Hands-On Owner-Operator Investor
  • 84% RevPAR Index; Value-Add Opportunity Available

Exclusively Listed By

Hotel-Motel

Country Inn & Suites by Radisson, San Marcos, TX

Listing Price: $6,300,000

Cap Rate
4.91%
Number of Rooms
84
RevPAR
$52
Gross SF
47,992
Price/Room
$75,000
RRM
3.97
Price/Gross SF
$131.27
Year Built
2009

Investment Highlights

  • Located In the Second Fastest Growing County In The Country
  • 84-Room, Interior Corridor, Upper Midscale Hotel Built in 2009
  • Located Four Miles from San Marcos Premium Outlets and Texas State University
  • Well Positioned with Excellent Visibility from Interstate 35
  • Operational Upside for Prospective Hands-On Owner-Operator Investor
  • 84% RevPAR Index; Value-Add Opportunity Available

Investment Overview

Marcus & Millichaps National Hospitality Group, as an exclusive representative of the seller, is pleased to present for sale to qualified investors the Country Inn & Suites San Marcos. The Radisson-branded hotel is priced at $6,300,000 or $75,000 price per room. Priced at a 3.94 room revenue multiplier based on year-end 2019 room revenues, this 2009-build hotel is positioned along Interstate 35 near the interchange with Highway 123.

The four-story property consists of 84 guest rooms and presents a new owner the opportunity to acquire a hospitality asset within the Austin MSA. This value-add asset is being sold at a price below replacement cost and allows a new owner the ability maximize profits through a reduction in management costs for the property. The hotel is well-equipped with spacious guest rooms, fitness and business center, an indoor pool, and meeting facility.

For the twelve-month period ending December 2019, the hotel reached $1,585,000 in room revenue and over $1,600,000 in gross revenue. The property achieved over $300,000 in net operating income for year-end 2019 after interest, taxes, depreciation, and amortization; this equates to approximately 19 percent of total revenue after debt service. Through a strong focus on increasing the hotels operational efficiency, a new owner can see a significant boost in hotel performance and an increase in the hotels EBITDA. With an 84% RevPAR index, the hotel has under performed its market competitive set and presents significant upside potential to a new owner through additional marketing to increase demand.

The expenses include provisions for a four percent reserve for capital replacement. The hotel is offered fee simple, unencumbered by a management contract and debt. New will be required to complete Radisson Hotel Group, Country Inn & Suites transfer PIP, which is estimated to cost $300,000-$350,000.

Exclusively Listed By

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