Discount to Replacement Cost

• This opportunity presents an investor with the ability to acquire the dual-branded property at a price well below replacement cost.

Significant Upside for a New Operator to Improve Performance

• The hotel experienced a stable revenue average from 2021 through 2024, with average rooms revenue rising from $1,905,570 (rounded), reflecting steady market demand.

• Per the December 2024 STR data, the hotel ranked in the top two among five other competitive hotels in terms of occupancy and average daily rate (ADR), having registered a RevPAR penetration index of 146.0%.

• The asset is absentee owned with higher-than-average expenses for a similar product. A savvy owner could further increase the NOI flow-through via proper expense management and/or on-property oversight.

Renovation Highlights

• Current ownership has recently invested in property upgrades and renovations over the last few years, including the resurfacing of the parking lot, exterior work, and other capital projects.

Excellent Location Among Commercial & Leisure Demand Generators

• The property benefits from its favorable location with immediate access to I-37, within three miles of Corpus Christi International Airport and proximate to major demand drivers such as the Valero refinery, CITGO Petroleum Corporation, and the Port of Corpus Christi, one of the largest in the United States.

• Nearby leisure attractions, such as Padre Island, Mustang Island, Downtown Corpus Christi, Hurricane Alley Waterpark, the Texas State Aquarium, and the USS Lexington Museum, also draw leisure demand.

• Other prominent contributors to lodging demand include well-respected institutions such as Del Mar College, Texas A&M University-Corpus Christi, CHRISTUS Spohn Health System, Corpus Christi Medical Center Doctors Regional, and the Naval Air Station Corpus Christi.

Developments in the City of Corpus Christi

• Texas A&M University-Corpus Christi broke ground on its new Arts and Media Building on May 15, 2024. Funded in part by $45 million from the Texas Legislature, it will offer music, theatre, and dance programs and feature state-of-the-art amenities, such as a 325-seat proscenium theatre and a 200-seat recital hall. The project aims to enhance artistic expression and community engagement upon completion, slated for 2026, promising increased program accreditation and community outreach opportunities.

• Corpus Christi FC Sharks, the city's pre-professional soccer team, celebrated a significant milestone with the groundbreaking of a cutting-edge Multi-Sport Complex, marking the team’s first permanent home since inception. Located near Old Brownsville Road and Cliff Maus Drive, the $28.3-million complex, a collaboration between Next Sports Company and the City of Corpus Christi, will include a 5,000-seat soccer stadium, illuminated multi-purpose soccer fields, and a standard-length go-kart track. The project aims to foster community unity and support for soccer, providing Corpus Christi FC and other sports programs with top-tier facilities. Scheduled for completion in 2025, the complex will support economic growth and provide diverse sporting opportunities for the city, signaling a new era for soccer in Corpus Christi.

• The new aquatic center at Bill Witt Park in Corpus Christi, slated for completion by the summer of 2025, will offer a range of amenities such as a ten-lane lap pool, recreational pool, slides, play units, and spray features, alongside parking, seating areas, and shade structures. City leaders have emphasized the center's significance in meeting community needs, particularly in the Southside area, by providing year-round facilities for lap swimming and family enjoyment. With the park already boasting soccer and baseball fields and a hiking/biking trail, the addition of the aquatic center is anticipated to further enhance community engagement and enjoyment.