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La Quinta Inn & Suites by Wyndham Bay City – Image Credit HVS
HVS Brokerage & Advisory is offering the exclusive chance to acquire the 57-key La Quinta Inn & Suites by Wyndham Bay City. This property, located near Houston in Bay City, Texas, is positioned as a distressed asset with considerable upside potential. The hotel, currently under absentee ownership, is expected to benefit significantly from a more engaged owner/operator following a mandatory property improvement plan.
Financial Performance and Potential
The hotel’s financials reveal a history of underperformance with a gross operating profit (GOP) of 35.15% for the years 2023 and 2024. However, industry comparisons suggest that a well-managed equivalent could achieve a GOP margin between 48.0% and 52.0%. The hotel’s room revenue for 2024 was reported at $961,000, marking an 11.53% increase from the previous year, although still lagging behind the competitive set’s 37.5% revenue increase. This indicates a substantial opportunity for revenue enhancement through more effective management and aggressive sales strategies.
Market and Location Advantages
The La Quinta Inn & Suites benefits from its strategic location off State Highway 35, surrounded by numerous business and leisure demand generators. The upcoming construction of a $ 6 billion e-fuels facility in nearby Matagorda County, expected to begin in 2026, is anticipated to significantly boost local hotel demand. This facility is expected to attract thousands of construction workers to the area, followed by a permanent staff, thereby increasing long-term lodging needs.
Franchise and Brand Strength
Upon acquisition, the new owner can expect a 20-year license agreement with Wyndham Hotels & Resorts. La Quinta by Wyndham is recognized as a robust, limited-service, upper-midscale brand that attracts both business and leisure travelers. The brand’s national RevPAR index exceeds 100.0%, and franchisees gain from access to over 100 million Wyndham Rewards members.
Investment Considerations
This acquisition is marketed at less than $59,000 per key, which is significantly below the estimated replacement cost of $100,000 per key for a similar property. This pricing presents a unique opportunity for investors to enter at a cost well under market value, with substantial room for value addition through direct management and operational restructuring.
The La Quinta Inn & Suites by Wyndham Bay City represents a compelling investment opportunity, especially for hands-on operators looking to capitalize on the operational inefficiencies and market dynamics. The combination of a strategic location, upcoming industrial developments, and the strength of the Wyndham brand creates a promising outlook for potential investors.
Inquire at HVS.
