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Baymont by Wyndham Odessa University Area – Image Credit HVS
HVS Brokerage & Advisory lists an investment opportunity to acquire the 75-key Baymont by Wyndham Odessa—University Area, a hotel asset performing strongly in Texas. The property is strategically located near the University of Texas Permian Basin, Midland International Air & Space Port, and Downtown Odessa.
HVS Brokerage & Advisory, acting as the exclusive advisory firm to the ownership, presents this acquisition opportunity. The hotel, located near the University of Texas Permian Basin (UTPB), Midland International Air & Space Port, and Downtown Odessa, has been demonstrating robust performance, largely due to its strategic location.
The financial statement from the year-end December 2024 showed a gross operating profit (GOP) of 40.3%, with a net operating income (NOI) flow-through of approximately $338,000. The hotel’s operations could be restructured to maximize Revenue per Available Room (RevPAR) penetration and NOI flow-through, suggesting potential profitability for a hands-on operator.
Historically, the hotel has exhibited strong RevPAR performance. RevPAR levels in the Permian Basin market have grown over the past four years, with 25.0% growth in 2022, followed by a significant 35.0% increase in 2023. As per the December 2024 STR report, the hotel ranked third out of five competitors in RevPAR, registering a 131.2% RevPAR index. This strong market demand trend presents a lucrative opportunity for a new investor.
The hotel was converted to a Baymont by Wyndham in 2023, implying that a minimal change-of-ownership property improvement plan (PIP) is expected. The property’s excellent visibility and accessibility off the frontage road along Business Loop I-20 (East Highway 80) are significant advantages. Its proximity to numerous dining, retail, and entertainment options appeals to business and transient guests all year round.
The local economy is expanding, with a strong presence of oil and gas companies such as Chevron, ExxonMobil, ConocoPhillips, and others. ExxonMobil plans to invest approximately $140 billion through 2030 across major projects, primarily in the Permian Basin, targeting a production goal of one million barrels of oil equivalent per day (BOE/D) by year-end 2025.
Moreover, the hotel is being offered free and clear of any management encumbrances, providing an investor with the flexibility to revamp the current operator’s operational strategies. This allows more hands-on operators to exploit the hotel’s potential fully.
Inquire at HVS.
