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La Quinta Inn & Suites by Wyndham Galveston Island North – Image Credit HVS
HVS Brokerage & Advisory presents an investment opportunity to acquire the 76-key La Quinta Inn & Suites by Wyndham Galveston Island North, situated in the bustling leisure market of Galveston, Texas
HVS Brokerage & Advisory offers an investment opportunity to acquire the La Quinta Inn & Suites by Wyndham Galveston Island North. The recently built 76-key, limited-service hotel in Galveston, Texas, offers a significant upside for investors.
A hands-on investor can realize substantial potential from acquiring this asset in a historically strong leisure market. The hotel has an average gross operating profit (GOP) of 40.5%. However, similar limited-service hotels suggest the potential for a stabilized GOP margin between 46.0% and 50.0%.
The property is managed by a full staff, making it an ideal turnaround opportunity for an active owner or operator. Furthermore, it underperforms in room revenue, presenting a significant growth opportunity. If the hotel captures its fair share of market demand with a RevPAR index of 100.0%, it could generate over $2.7 million in room revenue.
The property, built in 2022, has been well-maintained. The hotel’s structure includes a parking garage and is expected to need only minor property improvement plans (PIP) upon change of ownership.
The hotel is off I-45, within the “Texas Triangle” of Austin, Dallas/Fort Worth, Houston, and San Antonio. Approximately 21 million people reside within a four-hour drive of Galveston, and the area hosts numerous festivals and events throughout the year. In 2023, Galveston saw a peak of 8.9 million visitors who spent a record $1.7 billion, positively impacting the local economy.
Large-scale developments are underway in Galveston, such as constructing the $700-million Margaritaville Resort and the $151-million fourth cruise terminal complex at the Port of Galveston, signaling significant economic growth and job creation opportunities.
The property’s strategic location near dining, retail, and entertainment options benefits business and transient guests. Demand generators include the University of Texas Medical Branch, Galveston College, Texas A&M University, Moody Gardens, petrochemical refineries in Texas City, and numerous leisure attractions.
The hotel is part of the La Quinta by Wyndham franchise, a well-established, limited-service, upper-midscale hotel brand. Upon approval from the franchise, an investor can expect a new, 20-year license agreement with Wyndham Hotels & Resorts. Furthermore, the hotel is offered free of any management encumbrances, providing flexibility to install a preferred management company or self-operate.
Inquire at HVS.
