Strong In-Place Cash-Flow. The hotel has a strong cash-flow, currently performing at $592,868 net operating income based on the August 2017 trailing twelve months. Additionally, the hotel has an average net operating income of $709,772 over the last three years, showing that it is a stabilized asset.
Robust Returns. The hotel is attractively priced at 2.89 RRM and 12.89% CAP rate based on August 2017 trailing twelve months financials. Assuming a 75% LTV SBA 7(a), the hotel currently generates a $326,127 cash-flow after debt service, which is a 28% return on investment.
Premium Brand Asset. The hotel is a well maintained, ten-year-old, premium branded Holiday Inn Express & Suites located in Zapata, Texas along US Hwy 83 fifty miles south of Laredo. The property is the only upper-midscale franchised asset in the market making it the primary choice for guests.
On-Site Owner’s Quarters. The hotel features a three bedroom, two bath on-site owner’s quarters consisting of 1,800 sqft which presents an excellent opportunity for a new investor to house an on-site manager that can closely monitor property operations and guests needs.
Falcon State Park. Located twenty-five minutes south of the hotel is the 576-acre Falcon State Park which is home to the Rio Grande’s largest lake. For world-class bass fishing, swimming, water-skiing and boating, guests can visit Zapata’s famous Falcon State Park and Reservoir. Falcon Lake holds a cherished spot in bass fishing circles and regularly hosts high stakes tournaments that attract some of the best anglers in the country.
Convenient Access to Southern Texas Attractions.The Holiday Inn Express Hotel and Suites Zapata provides guests easy access to various restaurants and businesses, as well as to many southern Texas attractions including La Paz Museum and the historic Jesus Trevino Fort Complex. For an understanding of the area’s heritage and culture, travelers can also view the exhibits of artifacts at the Colonel Antonio Zapata Museum.
The representations contained on this Internet page are provided based on information deemed reliable. However, the same has not been independently verified. Principals are advised to conduct a thorough due diligence for any potential transaction. CBRE Group Inc. name and logo are used herein for information purposes only.
Michael Yu and Yu Hospitality Real Estate Advisors, Inc. are licensed real estate brokers in the state of Texas. Rahul Bijlani, Eric Guerrero, Tyler Bean, Andrew Frosch, Dennis Drake, Agrama Mannapperuma and Pravin Boteju are licensed salespersons in the state of Texas and affiliated with and sponsored by CBRE Group Inc.