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Sonesta Essential Hotels Baton Rouge Airport – Image Credit HVS
The 77-key Sonesta Essential Hotel at Baton Rouge Airport is up for acquisition, offering a profitable opportunity for a hands-on owner/operator to restructure the hotel’s operations, improve revenues, and increase net operating income.
The Sonesta Essential Hotel Baton Rouge Airport, a 77-key, limited-service hotel in Baton Rouge, Louisiana, is currently available for acquisition. HVS Brokerage & Advisory, the exclusive advisory firm to the ownership, is presenting the property. The hotel was recently converted and is in good physical condition, offering potential buyers an opportunity to restructure the hotel’s operations and improve revenues.
The property is being offered as a distressed asset opportunity, likely to trade below its current debt level. This is because it is a lender-authorized short sale with a highly motivated seller, making it a unique opportunity for a buyer to acquire an asset below its current debt level. The hotel is absentee-owned and has been managed by a third party since 2022. This provides a chance for a more hands-on owner to improve operations.
According to the February 2025 STR report, the hotel ranked last in its competitive set in average daily rate (ADR), occupancy, and revenue per available room (RevPAR). However, if the hotel were to achieve the market RevPAR of $51, room revenue would reach approximately $1,450,000, equating to a room revenue multiplier (RRM) of 2.26x based on the pricing guidance.
Since 2022, the hotel has averaged room revenue of approximately $1,020,000, demonstrating a solid baseline of historical performance. The hotel’s proximity to ExxonMobil’s Baton Rouge refinery, one of the largest oil refineries in the United States employing over 6,500 workers, and its location minutes away from Baton Rouge Metropolitan Airport (BTR) and Louisiana State University (LSU), generate a consistent stream of both transient and extended-stay business.
The hotel underwent select renovations in 2024 as part of its conversion, including new flooring, fresh paint, a new water boiler, and exterior updates. Therefore, only minor property improvement plans (PIP) are expected upon transfer. The hotel asset is available at a price below its replacement cost, at $42,800 per key, presenting a cost-effective investment opportunity.
Since 2020, 39 companies have invested over $10 billion in the Baton Rouge market, creating 3,900 new jobs. Companies like BASF, CF Industries, ExxonMobil, and Renewable Energy Group, among others, have contributed to 45 economic development projects. This expansive growth indicates that the Sonesta Essential Hotel Baton Rouge Airport is ideally located in a burgeoning economic area, increasing its potential for profitability.
Inquire at HVS.
