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Holiday Inn Express & Suites Port Aransas/Beach Area – Image Credit HVS
HVS Brokerage & Advisory presents an exclusive opportunity to acquire the 74-key Holiday Inn Express & Suites in Port Aransas, Texas. The property’s strategic location and potential for optimized operations offer significant potential for increasing profitability.
The Holiday Inn Express & Suites Port Aransas/Beach Area, a limited-service hotel asset in Port Aransas, Texas, is up for acquisition. HVS Brokerage & Advisory, the exclusive advisory firm to the ownership, presents this investment opportunity.
The 74-key hotel is in a prime location in Port Aransas, near numerous leisure and corporate demand generators. Its strategic location has consistently generated strong room revenue, averaging $2,397,551 over the past five years. This resilience has been evident even during challenging periods like the COVID-19 pandemic.
The hotel’s performance suggests potential for further growth. Experienced ownership could optimize operations, for instance, by reducing payroll costs, which could significantly increase net profitability. Furthermore, the 74-key count is ideal for an experienced owner/operator, providing a blank slate to ramp up operations and increase revenues and net operating income (NOI) flow-through.
The Port Aransas market poses high barriers to entry due to soaring land prices and strict height restrictions on construction. Consequently, there have only been three new hotels since 2006, alleviating competition concerns. This highlights the rarity of new developments and decreases competitive pressures.
The hotel’s location also contributes to its attractiveness. It is less than a half-mile from the beach and near key attractions such as the Port Aransas Museum, Leonabelle Turnbull Birding Center, Red Dragon Pirate Cruises, Port Aransas Fishing Pier, Dolphin Dock Charters, Port Aransas Ferry Landing, WWII Gun Mounts, and Roberts Point Park.
In addition, upon approval from the franchisor and completion of the brand-mandated change-of-ownership PIP, an investor can expect a new, 15-year license agreement with InterContinental Hotels Group (IHG).
Inquire at HVS.
