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TownePlace Suites San Antonio Downtown – Image Credit CBRE
The TownePlace Suites San Antonio Downtown is now available for purchase, presenting a unique investment opportunity due to its strategic location and potential for significant value enhancement.
The TownePlace Suites San Antonio Downtown Riverwalk, a 117-suite hotel, has been listed for sale by CBRE Hotels. The property, ideally located in a vibrant urban neighborhood, offers proximity to San Antonio’s major attractions, including the River Walk and the Alamo. This prime location positions it to capture strong year-round leisure demand. The hotel is offered unencumbered by management, providing a new owner with the opportunity to implement a tailored business strategy to enhance its competitive positioning and operational efficiency.
Investment Highlights
The TownePlace Suites presents a compelling opportunity for investors seeking a unique asset in a prime urban location. The hotel is housed in a beautifully restored historic building that once served as the Neisner Department Store and was converted in 2010. This blend of architectural character with modern amenities appeals to both leisure and business travelers. Its historic significance, combined with strong brand affiliation and proximity to major attractions, positions it as a high-potential asset in one of Texas’s most visited cities.
Financial Incentives
The hotel is offered at a significant discount to replacement cost, given the increased construction costs for new hotels. Investors will benefit from the Marriott branding, supported by Marriott’s award-winning guest loyalty program, Marriott Bonvoy, which has more than 200 million members globally. This affiliation is expected to bolster the hotel’s market presence and customer base.
Strategic Location
Situated in the heart of downtown San Antonio, the TownePlace Suites is about two blocks from the River Walk and within a five-minute walk from the Alamo. The property is also near the Historic Market Square, the largest Mexican market in the country. Additionally, it is in proximity to major hotel demand generators, including the HEB Headquarters, Frost Tower, The Children’s Hospital of San Antonio, and Henry B. González Convention Center. The hotel’s location is further enhanced by its proximity to five renowned colleges within a four-mile radius.
Potential for Growth
Currently, the TownePlace Suites San Antonio Downtown Riverwalk is underperforming its competitive set, with a RevPAR index of 82.5. Provided unencumbered by management, the hotel presents substantial upside potential for a new owner. By leveraging robust corporate, group, and leisure demand, a new management team could enhance its market positioning and improve its performance metrics.
Economic Context
San Antonio is a thriving metropolitan area with a population exceeding 2.6 million, ranking as the fourth fastest-growing region in the United States in 2024. As the 25th largest metropolitan area in the country and the third largest in Texas, San Antonio boasts a diverse mix of industries that generate thousands of jobs and contribute to a local GDP of $163 billion. Key industries, including military, tourism, logistics, healthcare, business, and technology, play a crucial role in maintaining a strong job market and economic stability. This economic backdrop makes San Antonio one of the top-performing large cities in Texas, with one of the lowest unemployment rates in the nation.
Inquire at CBRE.
