Institutionally Owned, Value-Add Opportunity for an Experienced Owner Operator

• The hotel is institutionally owned and operated with a full staff in place.

• A more hands-on owner/operator will be able to restructure the hotel’s operations to boost net operating income (NOI) flow-through.

Recently Renovated, Significant Rooms Revenue Growth Expected

• In 2024, current ownership renovated multiple areas of the property and converted the hotel to a SureStay Plus by Best Western.

• Due to the extensive renovation last year, which affected guestroom inventory, management was unable to renew any corporate long-term contracts and missed out on some potential revenue opportunities.

Year One Pro Forma Rooms Revenue: $1,623,000

• For the trailing-twelve-month (TTM) period ending March 2025, the hotel earned $864,000 (rounded) in rooms revenue.

• Per STR’s year-to-date (YTD) data through March 2025, the hotel achieved an impressive 23.4% RevPAR increase compared to the same period last year, with an impressive 63.5% just in March.

Significant Upside for a New Operator  

• The hotel’s annual gross house profit (GOP) margin has averaged 15.95% since 2021.

• Based on a selection of similar economy-branded, limited-service hotel operating statements, the hotel should achieve a stabilized GOP margin between 45% and 50%.  

• There are multiple opportunities for improvement that could lead to a collective decrease in rooms expense and administrative & general (A&G) expenses, specifically within the payroll department, allowing for stronger cash flow.

• Per STR’s trailing-twelve-month (TTM) data through March 2025, the hotel ranked last (out of six) among its competitors in terms of occupancy and RevPAR.

• With a focused revenue-management strategy, a new owner/operator has the potential to increase the hotel’s RevPAR penetration closer to its historical average, registering an index above 80.0%.

Priced Below Replacement Cost at Less Than $30,000 per Key

• This opportunity presents an investor with the ability to acquire the property at a price well below replacement cost, at less than $30,000 (rounded) per key.

• To construct a similar limited-service asset with comparable amenities, the estimated all-in investment would be a minimum of $100,000 per key.

Robust Petrochemical and Energy Market

• Based upon a report published by the Southeast Texas Economic Development Foundation (SETEDF), approximately $41 billion of petrochemical expansion projects are either underway or have been recently completed; ongoing projects are expected to be completed by 2030.

• Beaumont continues to attract substantial investment through large-scale industrial and infrastructure projects, including major expansions in petrochemical processing, clean energy, advanced recycling, and storm protection systems.

Key Developments Fueling Market Expansion

• Linde is investing $1.8 billion to construct a state-of-the-art blue hydrogen production complex in Beaumont, Texas. Scheduled to commence operations later this year, the facility will utilize autothermal reforming technology, coupled with carbon capture, to sequester over 1.7 million metric tons of CO₂ annually. The project is expected to create approximately 1,200 construction jobs and 30 permanent positions, bolstering the local economy and reinforcing Beaumont's role in the clean energy sector.

• Cormorant Clean Energy Project: The $1.2-billion, ultra-low-carbon ammonia plant, Cormorant Clean Energy, is under construction near State 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.

• ExxonMobil is investing over $200 million to expand its advanced recycling operations at its Beaumont and Baytown sites. The expansion will add 350 million pounds per year of advanced recycling capacity, contributing to a total capacity of 500 million pounds per year. The new operations are expected to start up in 2026, helping to increase advanced recycling rates and divert plastic from landfills.

• Entergy Texas is constructing a $1.19-billion 1,215-megawatt OCAPS, a dual-fuel combined cycle power facility designed to utilize both natural gas and hydrogen. Located near Bridge City, Texas, this state-of-the-art plant aims to power over 230,000 homes, replacing aging infrastructure and enhancing grid reliability. Construction began in early 2023, with completion anticipated by 2026. An economic impact analysis estimates the creation of over 7,000 direct construction jobs and 27 permanent positions upon operation.

• Additionally, Entergy Texas announced plans to develop the 754 MW Legend Power Station, a hydrogen-capable and carbon capture-enabled power facility in Port Arthur. The $1.46-billion project is slated for completion by 2028 as part of Entergy’s Southeast Texas Energy Plan. Construction is expected to generate hundreds of local jobs, contributing significantly to the regional economy while supporting grid reliability and clean energy goals.

• The HFPP is a multibillion-dollar, multi-phase initiative to strengthen the region’s defenses against coastal storm surges and flooding. As of 2025, over $500 million in contracts have been awarded, including a recent $400-million design-build contract for major floodwall replacements and levee elevations. Construction is scheduled to begin in 2026 and continue into the early 2030s. The project is expected to protect over 100,000 residents and critical infrastructure, while supporting long-term job creation and economic resilience.

Excellent I-10 Location Among Strong Corporate & Leisure Demand Generators

• The property benefits from its strategic location along Interstate 10 (I-10), proximate to a multitude of corporate demand drivers, including the expanding ExxonMobil refinery, Chevron, Motiva Enterprises, Sunoco Logistics, BASF, Total Petrochemicals, Valero, Port of Beaumont, Conns Appliances, Lamar University, and Ford Park.

• For the leisure traveler, popular nearby attractions include the Texas Energy Museum, Spindletop-Gladys City Boomtown Museum, Ford Park Arena, Beaumont Children's Museum, and Gator Country Adventure Park.

• Nearby dining options include Crazy Cajun Beaumont, Cafe Del Rio, J. Wilson's, Luby's, and multiple quick-service restaurant (QSR) options.

• Additionally, the property is well positioned across the highway from the Medical Center of Southeast Texas and near the newly opened CHRISTUS Health – West Beaumont facility.