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Comfort Suites Austin Airport Hotel – Image Credit HVS
HVS Brokerage & Advisory is presenting an opportunity to acquire the recently renovated 84-key Comfort Suites Austin Airport hotel. The hotel is currently absentee-owned and operated by a third-party management company. A more hands-on owner or operator could improve the hotel’s operations by reducing expenses and increasing the net operating income (NOI).
HVS Brokerage & Advisory is currently the exclusive advisory firm tasked with presenting the opportunity to acquire the Comfort Suites Austin Airport. This is an opportunity for potential investors to acquire an 84-key, recently renovated limited-service hotel within the high-demand Austin market.
The hotel underwent an extensive property-wide renovation in 2023/24 under the Comfort Rise & Shine design scheme. Given the recent renovation, a minor change-of-ownership property improvement plan is expected upon transfer. The hotel is currently absentee-owned and operated by a third-party management company with a full staff that promises great potential for a more hands-on owner/operator to restructure the hotel’s operations and implement cost controls.
The hotel, which has registered an average gross operating profit level of 23.9%, is underperforming. Comparable operating statements for similar hotel assets indicate that the average gross operating profit should be between 44.0% and 50.0%. Thus, the new owner/operator could ramp up the hotel’s post-renovation operations, offering an opportunity to increase revenues and NOI flow-through.
The hotel’s ideal location along the frontage road near the intersection of U.S. Highways 71 and 183 provides a strategic advantage. The area is home to numerous dining, retail, and entertainment options. Corporate demand generators in the area include Oracle, Tesla Gigafactory, Tokyo Electron, MetCenter Business Park, Advanced Micro Devices (AMD), and the University of Texas.
Austin remains a major center for economic expansion, particularly in the technology sector. The city has experienced a 40% post-pandemic increase in tech jobs, attracting significant venture investments totaling $2.2 billion. Major companies, such as Tesla, SpaceX, Samsung, Google, Amazon, Meta, IBM, Intel, Apple, and PayPal, have established substantial operations in the area, contributing to Austin’s reputation as a burgeoning tech hub.
The hotel is less than three miles from Austin-Bergstrom International Airport (AUS), which is undergoing a multibillion-dollar renovation and expansion project as part of the “Journey with AUS” multi-year development program. This is expected to drive increased lodging demand in the surrounding area.
Inquire at HVS.
