Absentee Ownership. The property is absentee owned operating with a full staff. Although we believe the payroll expense is in line with this type of hotel, a more hands on owner/operator should be able to do a better job of achieving its fair market share in room revenue within the competitive set through aggressive revenue management.
Owners Apartment. The hotel has a two bedroom/two bath 1,200 sq. ft. owners apartment that is located above the front desk area.
Outdated Product. The property features 96 total guest rooms, of which only one room is fully renovated per the new Studio 6 design scheme. After completion of a full renovation the property should be able to be more competitive within the market.
Increasing Room Revenue. Based on the September 2017 Year-To-Date period the hotel’s room revenue is up 12.7% achieving a RevPAR of $21.80. Based on this current trend, the Hotel is expected to finish 2017 with a room revenue in excess of $700,000.
Well Below Replacement Cost.The hotel is priced at $23,958 per room. This per room cost is well below the cost of construction allowing a new investor to acquire the property at a very low basis.
Del Rio.Del Rio is the county seat of Val Verde County, Texas and is located 150 miles west of San Antonio. The property is conveniently located off Highway 90 West near the following demand generators: Whitehead Memorial Museum (5 miles), Laughlin AFB (14 miles), Amistad Lake (10 miles), Val Verde Winery (5.5 miles), San Felipe Country Club (4.5 miles), and Paul Poag Theatre (5 miles).
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.