-
Quality Inn Gonzales – Image Credit HVS
HVS Brokerage & Advisory, as the sole and exclusive advisory firm to ownership, presents the opportunity to acquire the 57-key Quality Inn Gonzales, a limited-service, exterior-corridor hotel asset in Gonzales, Texas, approximately 70 miles east of San Antonio and 70 miles south of Austin. The property benefits from its strategic location within the Eagle Ford Shale geological area, with the formation extending over 26 counties—one of the world’s largest contiguous oil-and-gas (O&G) plays.
Ideal for Owner/Operator
-
The property contains a three-bedroom, two-bathroom apartment with a fully equipped kitchen, a living room, and office space, which connects directly to the front desk.
-
The 57-key count is considered an ideal size for an owner/operator.
Growing Rooms Revenue with Significant Upside
-
The hotel’s rooms revenue increased by 11.0% (rounded) in 2024, reaching $611,965, up from $550,439 in 2023.
-
Per the trailing-twelve-month (TTM) period through November 2024, the hotel’s RevPAR equated to $29.77, below the competitive set’s average RevPAR of $34.35, ranking the hotel third (out of five) within its competitive set.
-
Improving the hotel’s RevPAR to meet that of competitive set’s average could generate rooms revenue of approximately $714,652, highlighting the upside for potential growth.
Discount to Replacement Cost
-
This opportunity presents an investor the ability to acquire the property at a price well below replacement cost, at less than $38,596 per key.
Economic Growth Powered by Multiple Sectors
-
Gonzales, known as the “Birthplace of Texas Independence,” has a strong economy supported by the O&G, agriculture, manufacturing, and retail trade industries. The presence of the Eagle Ford Shale attracts workers and business travelers, boosting demand for lodging accommodations.
Key Developments & Emerging Opportunities in Gonzales
-
The Texas Department of Transportation (TxDOT) has initiated a project to widen and upgrade Texas 80, enhancing connectivity between Gonzales and neighboring areas in this region. This expansion aims to improve traffic flow and support economic growth.
-
Construction has begun on a 12,000-square-foot expansion of the surgical wing at Gonzales Memorial Hospital. This project includes adding three operating rooms and renovating inpatient rooms to include full ensuite bathrooms, with completion expected by the fall of 2025.
-
The Gonzales Economic Development Corporation (GEDC) is driving significant growth with infrastructure projects, retail expansion, and business incentives designed to attract new businesses and support existing ones. The GEDC also collaborates with local educational institutions to enhance workforce development and ensure a skilled labor pool.
For inquiries please visit here to execute the Confidentiality Agreement.
