Ideal Opportunity for an Experienced Owner/Operator to Improve Performance

• The 58-key count is considered an ideal size for an experienced owner/operator.

• The hotel’s ten-year average rooms revenue from 2014 to 2023 equated to $1,120,475.

• Current ownership is operating the hotel from out of state. A more “hands on” owner/operator will be able to restructure the hotel’s operations, establish yield-management strategies, and initiate cost-containment initiatives.

Underperforming Hotel Asset with Operational Upside Potential

• Despite being in a strong market, the hotel has underperformed considerably. Per the December 2023 STR Report, the competitive hotel properties operated at an aggregate RevPAR of $79.42, while this hotel only managed to yield a RevPAR level of $52.70. If the hotel’s RevPAR matched that of its competitors, it would realize a rooms revenue of $1,681,321, highlighting significant upside potential.

• Per the December 2023 STR Report, the hotel ranked fifth out of the five competitive hotels in terms of occupancy and RevPAR, and fourth out of five in terms of average daily rate (ADR); thus, upside exists for a more “hands on” owner/operator to improve overall performance.

• The hotel has underperformed in the past, providing a new owner with the opportunity to implement new revenue-management strategies and drive room rates higher, leading to increased revenue and profitability.

Excellent Location Among Strong Corporate and Leisure Demand Generators

• Proximity to Major Industrial Employers and Healthcare Facilities: The property enjoys a strategic location that makes it attractive to a wide range of both corporate and leisure travelers, as it sits near industrial hubs such as the ExxonMobil Refinery, Motiva Enterprises, and Valero Refinery. These facilities attract many business travelers, contractors, and vendors on a daily basis. In addition, the property is located across the highway from the Medical Center of Southeast Texas and is able to accommodate patients, families, and healthcare professionals who require lodging.

• Nearby Retail and Tourist Attractions: The property is situated across the highway from Central Mall, providing guests with numerous options for dining and entertainment, thus enhancing the overall guest experience and convenience. Additionally, its proximity to the Gulf Coast and Sabine Lake makes it appealing to leisure travelers interested in maritime activities.

• Access to Educational Institutions: The property is close to Lamar State College – Port Arthur and Lamar University in nearby Beaumont. This proximity serves to draw visitors for university events, conferences, and family visits, contributing to an already consistent room-night demand pattern throughout the year.

• Convenient Transportation: Located along Memorial Boulevard, a major thoroughfare, the Comfort Inn & Suites provides easy access to Interstate 10, facilitating travel to/from Houston and other key cities.

Key Developments Fueling Market Expansion

• Cormorant Clean Energy Project: The $1.2-billion, ultra-low-carbon ammonia plant, Cormorant Clean Energy, is under construction near Highway 73 and West Port Arthur Road. This plant will be the first commercial-scale deployment of 8RH2 technology and will create over 1,000 new construction jobs from 2024 to 2027, as well as several hundred permanent positions upon completion.

• Diamond Green Diesel’s (DGD) Sustainable Aviation Fuel (SAF) Project: Valero Energy Corporation and Darling Ingredients Inc. have invested $315 million in a project at the DGD Port Arthur plant to upgrade its 470-million-gallon annual production capacity to SAF. Upon completion in 2025, DGD is expected to be one of the largest SAF manufacturers in the world.

• Port Arthur Hurricane Flood Protection (HFPP): This extensive project is designed to strengthen the region’s defenses against coastal storm surges and flood damage. It involves constructing about six miles of new earthen levees and another six miles of floodwalls. Scheduled for completion in 2026, this $863-million initiative will not only enhance the area's resilience but also generate ongoing construction employment opportunities.

• These projects collectively highlight Port Arthur’s strategic role in continually advancing energy infrastructure, promising substantial economic benefits through job creation, increased industrial activity, and overall market expansion.