Catylist ID: #30343657
Comfort Inn and Suites
Hospitality for Sale
|Catylist Listing ID:||30343657|
|Number of Units:||72 Units|
|Building Size (RSF):||98,010 SF|
|Gross Building Area:||See Agent|
|Gross Land Area:||2.25 Acres|
|Unit Price:||$98,611.11 Per Unit|
|Property Use Type:||Investment|
|Sale Terms:||Cash to Seller|
Overview / Comments
Marcus & Millichap's National Hospitality Group, as an exclusive representative of the seller, is pleased to present for sale to qualified investors the Comfort Inn & Suites Lovington. The Choice Hotels International-branded hotel is priced at $7,100,000 or $98,611 price per room; this represents a 3.68 multiple on July trailing 12-month room revenues. An established property, constructed in 2015, is located on Texas Highway 82 less than two miles from the downtown area. The hotel features an indoor pool, fitness center, and a meeting room.
Priced at an attractive 12.50 percent capitalization rate, this three-story, 72-room hotel presents a new owner the opportunity to acquire a fully stabilized hospitality asset. Operationally, this hotel is bringing in upwards of $1.9M in room revenue on the trailing twelve-month financials while effectively operating with a net operating income of approximately 46 percent of overall revenues; this equates to roughly $890 thousand before debt service. The subject property's above-market occupancy has allowed the hotel to experience growth in room revenues in excess of 40 percent since 2017 and become one of the leading properties in the market; also this hotel is the only franchised property in the growing market which allows for additional stable and long-term business.
The Comfort Inn and Suites Lovington is situated less than one mile from the largest employer in the city, Nor-Lea Hospital District. The Economic Development Corporation projected recent growth in the city and attributes it to the influx in Oil & Gas Extraction. There has been over 150 new homes built in the last two years and a population growth of 6,000 people. Another recent development in the city includes a brand new multifamily project, Lovington Trails Apartments, broken down into two phases with phase two currently scheduled for development.
The expenses include provisions for a three percent management fee and four percent reserves for capital replacement. The hotel is offered fee simple, unencumbered by management and debt.
|Proximity:||1 mile||3 miles||5 miles|
Matthew ReevesMarcus & Millichap CARNM CIE Member
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