Robust Historical Performance

• Despite most markets taking a hit from the COVID-19 pandemic, the Hotel’s rooms revenue was up 9% through year-to-date November 2020.
• Based on the November 2020 trailing-twelve-month profit-and-loss statement (P&L), the Hotel achieved an NOI flow-through of about $1,000,000 (rounded), or 29.8%, inclusive of 3% management fees and 4% FF&E reserves.
• The current management team has done a good job of securing long-term government contracts, accounting for more than 20,000 room nights in 2020 alone.

Management Availability

• The Property is being offered free and clear of any management encumbrances, providing an investor with the flexibility to revamp the operational strategies of the Hotel.

Excellent Location Among Strong Corporate and Leisure Demand Generators

• The Property benefits from very good visibility off the frontage road along Interstate 35. Based on the 2019 data from the Texas Department of Transportation, this section of Interstate 35 averages nearly 104,000 vehicles daily.
• This Property is the closest premium branded hotel to the U.S./Mexico border.
• Corporate demand generators in the area include the Laredo Medical Center, Doctor’s Hospital, Texas A&M International University, Concentrix, Laredo Energy Arena, Laredo Sector Border Patrol, and the US CBP-Customs Field Office.
• Leisure demand generators in the area include Mall del Norte, a supper regional shopping mall that encompasses over 1.2 million square-feet of retail space; The Outlet Shoppes at Laredo; and Lake Casa Blanca International State Park.

World-Class Brand Affiliation and Distribution Platform

• Upon completion of the change-of-ownership PIP, an investor can expect a new, 20-year license agreement with Marriott.
• The Courtyard brand is Marriott’s largest brand by distribution and has a great reputation in the industry. Per Marriott, the brand has a legacy of impressive performance that includes consistent delivery of high returns and solid RevPAR to owners. Courtyard owners also benefit from Marriott’s robust demand generation engine that drives top-line revenue while maximizing bottom-line savings
• The award-winning Marriott loyalty program, known as Bonvoy, is one of the largest in the hotel industry, offering members access to more than 6,700 hotels across 29 brands. Serving nearly 100 million enrolled members worldwide, it is an effective tool for driving customers to Marriott hotels and creating brand loyalty.

Discount to Replacement Cost

• With current pricing guidance at $80,000 per key and a budgeted total change-of-ownership PIP cost of $2,200,000, or $20,000 per key, this opportunity presents an investor the ability to acquire the Property at a price well below replacement cost.
• To construct a similar select-service asset with comparable amenities, the estimated all-in investment would be a minimum of $130,000 to $150,000 per key.

Operational Upside After Renovation

• Based on the STR Trend Report, the Hotel ranked fifth out of eight hotels in terms of ADR for YTD November 2020, which shows significant room for improvement for a stronger operator. Upon completion of the change-of-ownership PIP, an investor will have a newly updated, Marriott-branded, select-service product and the ability to increase occupancy and rate by implementing aggressive sales tactics to capture more demand and maximize RevPAR penetration to outperform the hotels in the competitive set.