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Post Time Inn in Carlsbad, New Mexico – Image Credit HVS
HVS Brokerage & Advisory presents an exclusive opportunity to acquire the Post Time Inn, a 40-key independent motel in Carlsbad, New Mexico. The property’s strategic location along Hobbs Highway/U.S. Highway 62 ensures easy accessibility to Hobbs and Lea County. This opportunity is particularly attractive considering the potential to associate the hotel with a leading franchise in line with the local market’s demand trends.
Investment Highlights
The Post Time Inn has undergone widespread renovations, resulting in updated décor, comfortable rooms, and enhanced common areas. The property has been meticulously maintained, ensuring a high standard of upkeep. The motel’s average room revenue exceeded $790,000 in 2023 and 2024. As per year-to-date 2025 statistics, the hotel’s average daily rate (ADR) stands at $73.95, significantly contributing to the overall revenue growth.
Operational Upside Potential
Managed by a third party (Lark Hospitality), the property offers an opportunity for a more active owner/operator to implement improvements. The hotel registered an average gross operating profit (GOP) level of 34.4% in 2022 and 2023. With multiple avenues for improvement, specifically in the payroll department, the GOP margin could reach the 45.0% mark observed in similar independent or boutique hotels.
Financial Advantage
New Mexico’s comparatively lower property taxes also add to the property’s appeal. Over the last two years, the property’s average annual tax has been around $1,600 ($40 per room). Priced at $74,000 per key based on the $2,950,000 pricing guidance, the property is attractive, considering that building a similar hotel with equivalent amenities would require a minimum investment of $90,000 to $100,000 per key.
Prime Location in an Oil & Gas Hub
Situated in the heart of the top oil-producing region in the United States, the Permian Basin, the property benefits from the robust local oil and gas industry. Over the past six months, West Texas Intermediate (WTI) oil prices have consistently hovered between $70 and $80 per barrel.
Diverse Sources of Demand
The Post Time Inn benefits from diverse demand sources, including potential group business from energy companies, local educational institutions, and hospitals. The motel’s location is close to several popular attractions such as the Carlsbad Caverns National Park, Guadalupe Mountains National Park, Sitting Bull Falls, and Roswell, famous for UFO tourism. Carlsbad Caverns alone attracts 400,000 to 500,000 visitors annually.
Inquire at HVS.
