Increasing Revenue Trend

• The hotel’s rooms revenue increased year-over-year during the past five years, showcasing a strong rebound after the challenging pandemic year of 2020.

• Rooms revenue equated to $2,058,839 in 2025, reflecting a 13.5% increase compared to what was earned during 2024.

Robust Historical RevPAR Performance

• RevPAR levels in this Permian Basin market have increased over the last four years, with the competitive set achieving 2.5% RevPAR growth in 2022, followed by an impressive 25.0% increase in 2023, 13.6% increase in 2024, and 8.6% increase in 2025.

• Per the December 2025 STR report, the hotel ranked first out of six competitors in terms of RevPAR, registering a 136.1% RevPAR index. A new investor will be able to capitalize on the strong demand trends of the market.

Strong Cash Flow with Favorable CAP Rate

• In 2025, the hotel generated $716,219 in net operating income (NOI), excluding replacement reserves, demonstrating strong, reliable cash flow and supporting an attractive 11.0% capitalization rate.

Attractive Rooms Revenue Multiplier (RRM): 3.16x

• Based on the $6,500,000 pricing guidance, the hotel underwrites to an attractive 3.16x RRM in consideration of the hotel’s 2025 rooms revenue of $2,058,839.

Excellent Location in Permian Basin

• The property benefits from excellent visibility and accessibility off the frontage road along Texas Highway 191. 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 Texas Highway 191 and Yukon Road, approximately one-and-one-half miles from the property. The development includes a 100,000-square-foot Bass Pro Shops outlet, which is expected to provide local and regional lodging demand related to onsite workshops.

Expanding Local Economy

• The region has strong oil-and-gas (O&G) presence from companies like 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 (data not yet available).

• Increased global demand for natural gas and liquid natural gas (LNG) has resulted in several infrastructure projects, including the Apex Pipeline, the Blackcomb Pipeline, and the Gulf Coast Express Expansion. These projects are aimed at increasing the output in billion cubic feet/day (Bcf/d) to other parts of Texas, with some scheduled to open in 2026.