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Suburban Studios Berwick – Morgan City
CBRE Hotels solicits offers to acquire the fee-simple interest in the Suburban Studio in Morgan City, Louisiana. The property is located off Highway 90, just less than five miles from both South Central Louisiana Technical College and the Cajun Coast Convention Bureau. Morgan City is located 1 hour southwest of Lafayette, LA and 1 and a half hours east of New Orleans.
Investment Highlights
- Excellent Condition / Minimal PIP – The property has recently been renovated by the current owner and will likely have a very small PIP.
- Absentee Owner – The current owner is located out-of-state and operating the hotel absentee. This project presents strong upside potential for a more hands-on owner to cut costs and improve operations.
- Underperforming the Comp Set – The hotel is currently underperforming its comp set, with a 86.9 RevPAR index as of December 2024 TTM. This project presents significant upside potential for a more proactive operator to drive RevPAR increases through implementing more focused revenue management.
- Diverse Demand Drivers – The hotel is in proximity to multiple corporates and college, including Conrad Shipyard, Cameron, Swiftships , Murphy Exploration and Production, InterMoor Inc, Oceaneering International Inc, and South Central Louisiana Technical College. It is also within a short distance to the major medical care provider in the area – Ochsner St. Mary.
- $30 million Ports West Dock Expansion Project – The Port is uniquely situated to ship and receive cargo throughout the United States, Canada, Mexico, Central America, and the Caribbean. It offers a multimodal transportation network for its industrial clients. Morgan City is now in its design and construction phase of its $30 million Ports West Dock Expansion Project. The project will take about 2 to 2.5 years to complete. It will bring a boost to economic activity for St. Mary Parish.
- Performance Contractors – Performance Contractors recently expanded their production capabilities by adding a modular fabrication facility in Morgan City, LA. The new site will be used to assemble large process modules and will position Performance as a major domestic module builder in the U.S, offering clients an option that does not need to be procured from overseas. As of now, the team in Morgan City is scheduled to fabricate ten modules with peak manpower of 1,000 people.
- Oil & Gas Offshore Exploration – President Donald Trump has attempted to reverse a ban on future oil and gas drilling in more than 625 million acres of federal water in a sweeping day-one executive order rescinding former President Joe Biden’s Jan. 6 order under the 70-year-old Outer Continental Shelf Lands Act to withdraw all federal waters off the East and West coasts and the eastern Gulf of Mexico and portions of the northern Bering Sea in Alaska from oil and gas drilling. President Donald Trump issued an order for the U.S. to resume processing export permit applications for new liquefied natural gas (LNG) projects, part of an effort to raise U.S. energy output and dismantle his predecessor’s climate policies.
For inquiries visit CBRE.
