Quality Suites South Austin

1701 East Saint Elmo Road, Austin, TX 78744, US

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HVS Brokerage & Advisory, as the sole and exclusive advisory firm to ownership, is pleased to present the opportunity to acquire the 51-key Quality Suites South Austin, an interior-corridor, limited-service hotel in the highly sought-after Austin market. A more “hands-on” owner/operator will have the opportunity to acquire a hotel asset within the high barriers-to-entry market of Austin, with upside to restructure the hotel’s operations by reducing expenses and improving NOI flow-through.

South Austin



Investment Type




Year Built


Average Daily Rate






Room Revenue

Financials as of TTM July 2023


Ideal Opportunity for an Experienced Owner/Operator

  • The 51-key count is considered an ideal size for an experienced owner/operator.

  • The property contains two large suites that a new owner/operator could divide to create two additional guestrooms (increasing the key count to 53) or convert to a manager/owner’s apartment.

  • Based on the past two years of financial statements, the hotel registered an average gross operating profit (GOP) of 33.0%. Based on a selection of operating statements from similarly aged hotels affiliated with Choice, the hotel should achieve a stabilized GOP margin between 45.0% and 50.0%.

  • The hotel is operated institutionally with a full staff in place. Great upside exists for a more “hands-on” operator to restructure the hotel’s operations to maximize RevPAR penetration and NOI flow-through.

Strong-Performing Asset and Market

  • The hotel’s trailing-twelve-month (TTM) rooms revenue equated to $1,500,000 (rounded) as of July 2023, reflecting the hotel’s best performance in the past five years.

  • Compared to its competitive set, the hotel has performed strongly and has established its market share. Per STR’s June 2023 monthly data, the hotel ranked first out of seven competitors in terms of occupancy, with a penetration index of 115.2%, thus resulting in a RevPAR penetration index of 116.8%.

  • The greater Austin market realized 4.8% growth in room-night demand during the TTM period ending in June 2023, and this upward trend is anticipated to continue in the coming years given the local economic boom.

Well-Maintained Physical Product

  • The property has been exceptionally maintained by current ownership; therefore, a minimal change-of-ownership PIP of $6,000 per key is expected.

Discount to Replacement Cost

  • This opportunity presents an investor with the ability to acquire the property at a price well below replacement cost. To construct a similar limited-service asset with comparable amenities, the estimated all-in investment would be a minimum of $150,000 per key.

Choice International Franchise

  • Upon completion of the change-of-ownership PIP, an investor can expect a new, long-term franchise license agreement with Choice Hotels International. The PIP report has been ordered and will be posted to the VDR upon receipt.

Management Availability

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

Highly Desirable Location within Austin

  • Given Austin’s position as a strong, diversified tech market with continued interest from corporate tech users, including a new, $1-billion Apple campus; a new, $17-billion Samsung semiconductor factory; and a new, $1.1-billion Tesla factory, the market has recovered from the effects of the pandemic, with a trajectory of long-term growth expected.

  • The city also hosts multiple events throughout the year that generate a significant amount of leisure demand, including the South by Southwest Conference (March), Austin City Limits Festival (October), and United States Grand Prix (October).

  • The thriving presence of Tesla in Austin, with the establishment of the East Austin gigafactory and ongoing expansion of production capabilities, presents an exciting opportunity for the Austin hotel market. The increased activity and interest surrounding Tesla's operations should drive additional demand for accommodations, attracting Tesla employees, business partners, and enthusiasts to the area.

  • Austin’s economy continues to expand year-over-year, driven by the growth within the technology and multimedia sectors. PwC and Urban Land Institute (ULI) ranked Austin at No. 4 among the “top 10 U.S. real estate investment markets” for 2023.

  • Per the Austin Chamber of Commerce, Austin’s job growth is projected to be 47.0% (rounded) over the next ten years, higher than the 33.0% growth rate that has been projected for the United States. Jobs in Austin’s tech industries total over 161,000, representing 15.8% of all jobs, compared to 8.7% nationally.

  • In May 2023, construction began on the expansion of the Barbara Jordan Terminal in Austin-Bergstrom International Airport. The $164-million project is expected to add 80,000 square feet of space, including five new gates and more dining and retail outlets. The expansion will enable the airport to accommodate the increasing levels of demand and number of passengers.

Excellent Location Among Strong Demand Generators

  • The property benefits from very good visibility off the frontage road along Interstate 35, near numerous dining, retail, and entertainment options in the area, which is a positive attribute for both business and transient guests.

  • It also benefits from its location in South Austin, within a ten-minute drive of major economic demand drivers, such as Downtown Austin and Austin-Bergstrom International Airport, as well as the up-and-coming St. Elmo area, south of Austin’s city center, which is undergoing revitalization efforts.

  • Earlier this year, Austin City Council approved plans for a mixed-use development in South Austin, along the South Boggy Creek. Per the plans, the development will include 1,218 multifamily residential units, 210,000 square feet of office space, and 136,000 square feet of retail space; additionally, the developer will dedicate 13.5 acres of land for a city park.

  • Corporate demand generators in the area include Tesla, Google, Apple, Oracle, Intel, Facebook, The University of Texas, Dell Computers Corporation, Warner Brothers, and the Internal Revenue Service (regional office).


Over the past decade, Austin has experienced a remarkable surge in corporate relocations and expansions, showcasing its unrivaled appeal as a dynamic business destination. From 2010 to 2022, an upward trend in employment was realized, with significant cumulative job growth of over 172,000 positions. This meteoric rise demonstrates Austin's extraordinary magnetism, attracting companies from diverse industries to establish roots in this thriving metropolis. Year after year, data show a consistent pattern of new relocations and expansions, with each passing year resulting in further jobs being created. With over 1,500 companies making the strategic choice to invest in Austin during this period, the city's vibrant ecosystem of talent, innovation, and quality of life has proven to be a driving force in this success. As Austin continues to evolve as a global tech and business hub, the future holds boundless opportunities for even more growth and prosperity, solidifying its position as a top destination for businesses seeking a bright and promising future.



Austin-Bergstrom International Airport 

The Austin-Bergstrom International Airport (AUS) has undergone remarkable expansions and renovations, positioning itself as a versatile and resilient travel hub. Recent projects, including the $378-million expansion completed in 2019, have added nine gates and 175,000 square feet of terminal space, accommodating over 21 million passengers in 2022. AUS has successfully rebounded from the challenges of 2020, with passenger volumes for 2021 and 2022 surpassing historical levels. The airport's promising trajectory continues in 2023, showing an impressive 9.1% increase in passengers in the year-to-date period. AUS stands as a beacon of adaptability and growth, reaffirming its status as a key player in aviation.


St. Elmo District

The St. Elmo area in South Austin has emerged as a dynamic and rapidly growing district, capturing the attention of developers, tenants, and shoppers alike. Over the past few years, this once-industrial neighborhood has undergone a significant transformation into a thriving hub of shopping, dining, and entertainment, complemented by a diverse range of nearby housing options and commercial developments. The area's strategic location, situated near key transportation arteries such as South Congress Avenue, Interstate 35, and U.S. Highway 71, makes it easily accessible to residents and employees alike. With numerous multifamily residential units and commercial spaces delivered since 2016, and several noteworthy projects currently underway, St. Elmo is becoming a sought-after destination for both businesses and residents seeking affordable options close to Downtown. As one of the last available spaces for potential development near the city center, St. Elmo holds immense potential for investors and developers looking to capitalize on the area's burgeoning growth and exciting future.


Circuit of the Americas

The Circuit of the Americas (COTA) is the first multipurpose Grand Prix racing facility in North America. With a seating capacity of over 120,000, COTA opened by hosting the American leg of the Formula 1 World Championships in the fall of 2012. In September 2018, IndyCar entered into an agreement to begin racing at COTA beginning in 2019. Other major racing events scheduled at COTA include the United States Grand Prix, Grand Prix of the Americas, 6 Hours of Circuit of the Americas, and the Lone Star Le Mans. In addition to racing facilities, the complex contains a 40,000-square-foot conference center, retail space, and numerous restaurants. Moreover, Q2 Stadium at McKalla Place opened in June 2021 and is home to the new Austin FC, a Major League Soccer team.



Investment Sales Contacts

Eric Guerrero

Senior Managing Director, Partner, Brokerage & Advisory
+1 (713) 955-0012

James Rebullida

Vice President, Brokerage & Advisory
+1 (713) 955-5580

Kyle Peterek

Senior Associate, Brokerage & Advisory
+1 (206) 259-7150

Fadi Rawashdeh

Senior Associate, Brokerage & Advisory
+1 (713) 955-0013