Beachcomber Inn

2825 61st Street, Galveston, TX 77551-2002, US

Execute Confidentiality Agreement

THE OFFERING

HVS Brokerage & Advisory, as the sole and exclusive advisory firm to ownership, is pleased to present the opportunity to acquire the 96-key Beachcomber Inn, an independent hotel asset in Galveston, Texas. This offering presents an excellent opportunity for a “hands-on” owner/operator to acquire a hotel asset with operational upside at a price significantly below replacement cost in a high-barriers-to-entry market. This turn-key opportunity will allow a new operator to ramp up the hotel’s performance quickly and maximize its RevPAR penetration and NOI flow-through.

Galveston, TX

Submarket

Value-add

Investment Type

96

Keys

1987

Year Built

$90.95

Average Daily Rate

50.0%

Occupancy

$45.50

RevPAR

Financials as of Trailing-Twelve-Month (TTM) December 2022

PROPERTY HIGHLIGHTS

Ideal Opportunity for an Owner/Operator

  • The property features spacious onsite living quarters, including a two-bedroom manager's apartment.

  • As an independent hotel asset that is being offered free and clear of any management or franchise encumbrances, an owner/operator is afforded maximum flexibility to revamp operational strategies.

Discount to Replacement Cost

  • The property can be acquired below replacement cost.

  • The estimated all-in investment to construct a similar asset with comparable amenities is a minimum of $125,000 per key due to the scarcity of available land.

Strong Performance and Stability

  • The hotel has consistently outperformed the competitive set, achieving a trailing-twelve-month (TTM) RevPAR penetration index of 114.0% per the December 2022 STR Trend Report.

  • The hotel has demonstrated remarkable stability over the last decade, producing an average of $1,659,579 in annual rooms revenue.

High-Barriers-to-Entry Market and Excellent Beach Access​​​​​​​

  • Galveston is a high-barriers-to-entry market due to limited developable land, strict zoning regulations, and a historic district that restricts new construction.

  • Galveston Beach is within a five-minute walk of the property.

Strong Leisure and Corporate Demand Generators

  • Corporate demand generators in the area include the University of Texas Medical Branch (UTMB), Galveston College, Texas A&M University, Landry’s, Moody Gardens, Moody Bank, ANICO, Mitchell Family Companies, Marathon Petroleum, and Valero.

  • Leisure demand generators in the area include Port of Galveston Cruise Terminal, Moody Gardens, Schlitterbahn Water Park & Resort, Pleasure Pier, 61st Street Fishing Pier, Galveston Island Convention Center, and historic Downtown Galveston.

  • Port of Galveston is ranked fourth out of busiest cruise ports in North America, and the cruise-ship industry is expected to recover from pandemic setbacks.

  • Over 80 year-round festivals, special events, sporting events, and gatherings are held in Galveston in a typical year.

MAP

CONTACT US

Investment Sales Contacts

Andrew Frosch

Senior Vice President, Brokerage & Advisory
HVS
Houston
+1 (713) 955-0138
afrosch@hvs.com

Joseph Manuel

Vice President, Brokerage & Advisory
HVS
Houston
+1 (713) 955-0139
jmanuel@hvs.com

Kyle Peterek

Senior Associate, Brokerage & Advisory
HVS
Seattle
+1 (206) 259-7150
kpeterek@hvs.com

Fadi Rawashdeh

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