Best Western Plus Lake Jackson Inn & Suites

702 Highway 332 East, Lake Jackson, TX 77566, US

Execute Confidentiality Agreement

THE OFFERING

​​​​​​​​​​​​​​HVS, as the sole and exclusive advisory firm to Ownership, is pleased to present the opportunity to acquire the 64-key Best Western Plus Lake Jackson Inn & Suites, a limited-service asset located in Lake Jackson, Texas.​​​​​​​ ​​​​​​​Lake Jackson, part of Brazoria County, is situated approximately 55 miles south of Houston and is anchored by the petrochemical industry.

Texas South

Submarket

$5,500,000

Pricing Guidance

64

Keys

2015

Year Built

$108.51

Average Daily Rate

60.4%

Occupancy

$65.55

RevPAR

94.1%

RevPAR Penetration Index

$1,531,320

Room Revenue

5.6%

CAP Rate

$85,938

Price Per Key

Financials as of Year-end 2019

INVESTMENT HIGHLIGHTS

Robust Petrochemical Market Growth

  • Based upon a recent economic report published by the Economic Development Alliance for Brazoria County, approximately $4.7 billion of petrochemical expansion projects are underway and nearly $5.9 billion of projects are in early planning stages with their local municipalities. One of the projects underway is INEOS’s $1.24-billion Chocolate Bayou plant expansion in Alvin, Texas. Local officials anticipate this project to generate over 2,500 temporary jobs in the area during the duration of its construction through 2023.

Upside Potential for a Robust Operator

  • Based on the 2019 profit-and-loss (P&L) statement, the Hotel achieved a house profit of 36.0%, with an NOI flow-through of 19.8%, including 3% management fees and 4% FF&E reserves. Great upside exists for a more “hands-on” owner/operator to restructure the Hotel’s operations, establish yield-management strategies, and initiate cost-containment initiatives to maximize RevPAR penetration and NOI flow-through.
  • Per the June 2020 trailing-twelve-month (TTM) STR Report, the Hotel ranked third out of six competitive hotels in terms of occupancy and third out of six in terms of ADR. As the newest hotel in its competitive set, a more prudent and hands-on owner/operator should be able to capture more demand from transient guests and transition the Hotel into becoming a market leader.

Well-Maintained, High-Quality Physical Product

  • The Property opened in 2015, and ownership has maintained the Property exceptionally well by implementing a monthly inspection of all guestrooms. Given the excellent physical condition, a minimal change-of-ownership PIP is expected.
  • Based on current pricing guidance, the Property is priced below replacement cost at $89,000 per key. To construct a similar limited-service asset with comparable amenities, the estimated all-in investment would be a minimum of $100,000 to $110,000 per key.

Best Western Membership

  • Per Best Western, the brand boasts the most competitive franchise (membership) fees, allowing owners to drive more revenue to the bottom line. New franchisees (members) will also benefit from the automatic member franchise transfer agreement to operate the Hotel.

Excellent Location Along Texas Highway 288 and Near Demand Generators

  • The Property benefits from very good visibility off the frontage road along Texas Highway 288. Based on the 2018 data from the Texas Department of Transportation, this section of Texas Highway 288 averages nearly 58,000 vehicles daily.

PROPERTY OVERVIEW

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Property Details​​​​​​​​​​​​​​​​​​​​​

  • Address: 702 Highway 332 East, Lake Jackson, TX 77566
  • Submarket: Texas South
  • Food & Beverage: Complimentary Full Hot Breakfast (served daily) & Market Pantry
  • Meeting Space: 390 Square Feet
  • Stories: Three
  • Structure: Wood Frame
  • Foundation: Reinforced Concrete
  • Exterior Walls: EIFS & Brick
  • Interior Walls: Sheetrock & Decorative Millwork
  • Roofing: Flat TPO
  • Elevators: One
  • Lot Size: 68,844 Square Feet (1.58 acres)
  • Parcel Number: 617257
  • Management: Unencumbered
  • Brand: Best Western Plus
  • Franchise: Best Western Hotels & Resorts
  • Ownership Interest: Fee Simple
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Hotel Amenities

  • Fitness Room
  • Outdoor Swimming Pool
  • Business Center
  • Guest Laundry Facility/Vending Area
  • Daily Housekeeping Service
  • Valet Dry Cleaning Service 
  • Self Parking
  • 24-hour Common Area in the Lobby

Guestroom Amenities

  • Complimentary Wi-Fi and Wired Internet in Rooms
  • Premium Bedding
  • Refrigerator
  • Microwave
  • Coffeemaker 
  • 42-inch Flat-screen Televisions 
  • Work Desk with Ergonomic Office Chair 
  • Iron and Ironing Board
  • Sofa 


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Guestroom Summary

King14
Double Queen34
King Suite10
Queen Suite6
Total64

MAP

CONTACT US

Eric Guerrero

Managing Director, Brokerage & Advisory
HVS
Houston
+1 (713) 955-0012
eguerrero@hvs.com

James Rebullida

Senior Associate, Brokerage & Advisory
HVS
Houston
+1 (713) 955-5580
jrebullida@hvs.com

Fadi Rawashdeh

Financial Analyst, Brokerage & Advisory
HVS
Houston
+1 (713) 955-0013
frawashdeh@hvs.com