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.

Well-Maintained, High-Quality Physical Product at a Discount to Replacement Cost

• Opened in 2020, the property has been well maintained by current ownership; thus, a minor change-of-ownership property improvement plan (PIP) would be expected upon transfer.

• To construct a similar limited-service asset with comparable amenities, the estimated all-in investment would be a minimum of $120,000 per key.

Ideal Opportunity for Experienced Owner/Operator

• This is an ideal opportunity for an experienced owner/operator looking to acquire a relatively new lodging facility in an active market. New ownership will have a blank slate to ramp up the hotel’s operations following the completion of a minor PIP and the ability to increase both revenues and net operating income (NOI) flow-through.

Operated by Third-Party Management Company

• The hotel is currently operated by a third-party management company with a full staff in place.

• The hotel’s annual gross house profit (GOP) margin has averaged 32.4% since 2022. Comparable operating statements for similar hotel assets indicate that the average GOP should be between 46.0% and 50.0%.

• 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.

Year-End 2025 Rooms Revenue of $2.4 Million

• In 2025, the hotel earned $2.4 million (rounded) in rooms revenue at an average RevPAR level of $71.

Market Leader and Increasing Revenue/Demand Trend

• Revenues have increased each year since the hotel’s opening, growing from $1.6 million to $2.4 million (rounded) at an approximately 14.0%–15.0% CAGR (compound annual growth rate), indicating a stable and maturing operating profile.

• The hotel has outperformed and consistently dominated its competitive set, having registered an annual average RevPAR penetration index of 128.8%, per the latest available data.

• Based on the November 2025 STR report, year-end room-night demand for the submarket market increased by 8.7%. This trend is expected to continue given the ongoing economic expansion in Beaumont.

Long-Term, 15-Year Franchise License Agreement with IHG

• Upon acquisition and approval, an investor can expect a new, 15-year franchise license agreement with IHG.

• Per InterContinental Hotels Group (IHG), the avid brand focuses on the essentials done exceptionally well, including a great night’s sleep in a clean room; a high-quality, grab-and-go breakfast; and a modern design with the latest technology, all delivered to guests with outstanding service.

• IHG’s booking channels captured an average of 88.0% of avid Hotel reservations in 2023, with 53.9% of bookings related to IHG’s One Rewards loyalty program.

Key Developments Fueling Market Expansion

• The $2.35-billion Beaumont New Ammonia (BNA) facility has reached a key commissioning milestone with first ammonia production achieved in late 2025. Located in Beaumont, Texas, the plant is designed for approximately 1.1 million metric tons of ammonia per year, with commercial operations targeted for later in 2026. The project strengthens the Upper Gulf Coast’s role as a major hub for global ammonia exports and supports growing demand from energy, industrial, and lower-carbon fuel markets.

• 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.

• 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.

• Chevron is planning a $5.0-billion, blue hydrogen and ammonia production facility as part of federally supported hydrogen-hub initiatives. The project is expected to break ground in 2027, with operations targeted to commence in the early 2030s, and will reportedly support over 1,700 construction jobs and 100 permanent operational positions.

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.

• The multi-purpose Ford Arena can host a variety of events including banquets, conventions, sporting tournaments, concerts, and family shows. The facility boasts a 9,737-seat, multi-purpose arena; 34,000 square feet of exhibit floor space; a 2,448-square-foot VIP Club; and a 1,107-square-foot patio. Ford Midway is home to the South Texas State Fair, which draws an attendance of over 400,000 each year.

• Nearby dining options include Pappadeaux Seafood Kitchen, Cracker Barrel, Lupe Tortilla and multiple quick-service restaurant (QSR) options.