A Prime Investment Opportunity in Texas’s Booming Oil Market

HVS Brokerage & Advisory presents the Wingate by Wyndham Seminole hotel as a promising investment opportunity, highlighting its potential to increase cash flow under more active management and its strategic location in a robust oil and gas market.

HVS Brokerage & Advisory is offering the Wingate by Wyndham Seminole, an 88-key hotel located in Seminole, Texas. The property is currently absentee-owned, suggesting that a more engaged owner could improve financial performance through better expense management. The hotel is on the market with a financial guidance suggesting a rooms revenue multiplier (RRM) of 3.0x, based on a trailing-twelve-month rooms revenue of approximately $1,387,000.

Financial Performance and Potential

In 2024, the hotel’s operating profit was 33.2%, with a net operating income (NOI) of about $344,000. There is significant potential for growth by optimizing operations, particularly in labor and expense management, which could increase the gross operating profit (GOP) margin to 40.0%-42.0%. The hotel also features a profitable on-site bar, which has been a consistent revenue generator, contributing roughly $88,000 in profit in 2024 alone.

Revenue Streams and Market Position

The Wingate by Wyndham Seminole has maintained stable room revenue, averaging $1,415,000 over the past three years despite absentee ownership. The hotel benefits from a diverse mix of demand sources, including local educational institutions, energy companies, and agricultural operations. Additionally, the property includes 3,000 square feet of flexible meeting space, providing opportunities to increase group and corporate business.

Strategic Location in a High-Demand Market

Located in the Delaware Basin within the larger Permian Basin, the hotel is strategically positioned in one of North America’s most active oil and gas extraction regions. This location supports stable performance, driven by consistent demand in the post-pandemic economy. The hotel’s proximity to larger population centers and its ability to attract energy-sector business contribute to its strong year-round occupancy rates.

Investment Appeal

The property is offered at $48,000 per key, representing a significant discount to replacement cost. This pricing, combined with the hotel’s strong financials and potential for increased profitability under more active management, presents an attractive investment opportunity.

In summary, the Wingate by Wyndham Seminole offers a compelling investment opportunity with considerable upside potential in a strong-performing market. The combination of its strategic location, stable revenue history, and potential for operational improvements makes it an appealing option for prospective investors.

Inquire at HVS.