Comfort Inn and Suites

Hospitality for Sale
Sale Pending
Catylist Listing ID: 30343657
Property Subtypes: Hotel
Status: Pending
Number of Units: 72 Units
Building Size (RSF): 98,010 SF
Gross Building Area: See Agent
Gross Land Area: 2.25 Acres
Sale Price: $7,100,000
Unit Price: $98,611.11 Per Unit
Property Use Type: Investment
Sale Terms: Cash to Seller
Cap Rate: 12.5%
Last Updated: 6/17/2019

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.

Additional Details

Nearest MSA: Hobbs
County: Lea
Tax ID/APN: 4000772160001

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Demographic Statistics

Proximity: 1 mile 3 miles 5 miles
Total Population: 5,056 11,470 11,470
Median Age: 29.67 30.85 30.85
Households: 1,690 3,738 3,738


Photograph of Listing Agent

Matthew Reeves

Marcus & Millichap CARNM CIE Member
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