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Holiday Inn Express & Suites Cuero, TX – Image Credit HVS
HVS Brokerage & Advisory is currently offering an opportunity to acquire the Holiday Inn Express & Suites in Cuero, Texas. This 78-key, limited-service hotel presents a significant investment opportunity, particularly for hands-on investors looking to capitalize on a distressed property priced below replacement cost.
Hotel Overview
Located approximately 90 miles southeast of San Antonio and 100 miles northeast of Corpus Christi, the Holiday Inn Express & Suites Cuero operates as an absentee-owned asset. The hotel is fully staffed, but there is considerable potential for increased net operating income (NOI) with more direct management involvement.
Financial Performance and Potential
As of August 2025, the hotel’s gross operating profit (GOP) was recorded at 21.6%, with room for improvement compared to the industry average GOP of 44.0% to 50.0%. The hotel’s current rooms revenue stands at $1,500,000, with a rooms revenue multiplier (RRM) of 3.0x. The property is being offered at less than $60,000 per key, which is attractive given the potential for revenue growth and operational improvements.
Renovation and Growth Prospects
A property improvement plan (PIP) is required upon change of ownership, with an estimated cost of approximately $1,600,000, or $20,000 per key. Post-renovation, the hotel is expected to see significant growth in rooms revenue, with projections suggesting a rise to over $1,700,000 by 2028/29. This renovation is also anticipated to enhance the hotel’s competitive position in the local market, where it currently ranks third out of five in terms of Revenue Per Available Room (RevPAR).
Strategic Location and Market
Cuero is part of the Eagle Ford Shale region, a key area for the oil and gas industry, which drives consistent demand for lodging. The local economy is also supported by healthcare, education, and manufacturing sectors. The hotel’s location offers convenient access to major Texas cities and transportation corridors, enhancing its appeal to a broad range of travelers.
Franchise and Management Flexibility
The acquisition includes the possibility of a new, 15-year franchise license with InterContinental Hotels Group (IHG), leveraging the IHG® Rewards Club loyalty program. Additionally, the hotel is offered without management encumbrances, giving the new owner the flexibility to choose or change the management approach as desired.
The Holiday Inn Express & Suites Cuero represents a robust investment opportunity with considerable upside potential. Its strategic location, coupled with the impending need for renovations, positions it well for revenue growth and operational improvements under new ownership.
Inquire at HVS.
