Bank-Owned Former Econo Lodge Hotel in Junction, Texas Listed for Sale

HVS Brokerage & Advisory is currently offering an investment opportunity in Junction, Texas. The property in question is a 47-key former Econo Lodge, now a bank-owned (REO) asset. This presents a unique value-add opportunity for potential investors interested in the hospitality sector.

Investment Potential

The former Econo Lodge Junction is a significant investment opportunity given its status as a bank-owned property. Priced at $12,200 per key, the asset is well below replacement cost, making it an attractive proposition for investors looking to enter or expand in the hospitality industry. The hotel’s closure in September 2024 means it is currently vacant, offering a clean slate for redevelopment, renovation, or repositioning.

Strategic Advantages

This property boasts several strategic advantages that enhance its appeal to potential investors. Firstly, its manageable size makes it ideal for an owner/operator or a first-time investor. Additionally, the lack of current franchise affiliation provides flexibility in branding and operation. The hotel’s location in Junction, Texas, positions it well within a retail and tourism hub, approximately 105 miles northwest of San Antonio and 125 miles from Austin. The local economy benefits from diverse sectors, including public administration, education, healthcare, and more, which supports steady transient demand.

Market Insights

According to the June 2025 STR trend report, the area’s competitive set of hotels achieved 52.9% occupancy, an average daily rate (ADR) of $73.46, and revenue per available room (RevPAR) of $38.85. These metrics indicate a healthy market performance that could benefit the subject property post-renovation. Additionally, the property includes four EV charging stations, historically generating about $5,000 in annual revenue, adding another income stream for the future owner.

Local Demand and Economic Drivers

Junction, Texas, serves as a significant hub for hunting and fishing tourism, supported by local initiatives such as the Texas Parks & Wildlife Guadalupe Bass Restoration Initiative. The area’s limited hotel supply, coupled with strong demand drivers such as deer hunting, which significantly contributes to lodging demand, suggests a clear path to occupancy gains following the property’s renovation.

Conclusion

The former Econo Lodge in Junction represents a compelling investment opportunity, with its below-market pricing, strategic location, and significant redevelopment potential. For investors seeking to capitalize on the robust market dynamics and economic drivers in Junction, Texas, this property offers a promising avenue.

Inquire at HVS.