Operational Upside Potential for a Robust Operator

• Per the year-end December 2024 financial statement, the hotel’s gross operating profit (GOP) was 40.3%, with a net operating income (NOI) flow-through of about $338,000 (rounded).

• Based on a selection of similar limited-service hotel operating statements, the hotel should achieve a stabilized GOP margin between 46.0% and 50.0%.

• Great upside exists for a more hands-on operator to restructure the hotel’s operations to maximize RevPAR penetration and NOI flow-through.

Robust Historical RevPAR Performance

• RevPAR levels in this Permian Basin market have increased over the last four years, with the competitive set achieving 25.0% RevPAR growth in 2022, followed by an impressive 35.0% increase in 2023.

• Per the December 2024 STR report, the hotel ranked third out of five competitors in terms of RevPAR, registering a 131.2% RevPAR index. A new investor will be able to capitalize on the strong demand trends of the market.

Recently Converted Hotel with Minor PIP Expected

• The hotel was recently converted to a Baymont by Wyndham in 2023; thus, a minor change-of-ownership property improvement plan (PIP) is expected.

Excellent Location in Permian Basin

• The property benefits from excellent visibility and accessibility off the frontage road along Business Loop I-20 (East Highway 80). Its proximity to numerous dining, retail, and entertainment options is a positive attribute for both business and transient guests year-round.

• The Texas Department of Transportation (TxDOT) is currently working on expanding and eleven-mile stretch of Interstate 20 between Odessa and Midland. The $424-million project includes constructing interchanges and reconstructing frontage roads.

• In February 2024, the Odessa Development Corporation (ODC) approved a resolution with ICA Development Inc. (ICA) to support its 150-acre, mixed-use development near the intersection of State Highway 191 and Yukon Road. The development includes a 100,000-square-foot Bass Pro Shops, expected to open in the spring of 2025.

Expanding Local Economy

• The region has strong oil-and-gas (O&G) presence from companies such as Chevron, ExxonMobil, ConocoPhillips, and others.

• ExxonMobil has announced plans to invest roughly $140 billion through 2030 across several major projects, primarily in the Permian Basin, to achieve its production goal of one million barrels of oil equivalent per day (BOE/D) by year-end 2025.

• In February 2025, Ecopetrol, a Colombian energy firm, renewed its joint venture with Occidental Petroleum and announced plans to invest over $880 million in 2025 to drill approximately 90 wells in the Midland and Delaware sub-basins.

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.