La Quinta Inn & Suites Corpus Christi – North Padre Island in Corpus Christi, TX Listed for Sale

HVS Brokerage & Advisory, as the sole and exclusive advisory firm to ownership, present sthe opportunity to acquire the 60-key La Quinta Inn & Suites by Wyndham Corpus Christi-North Padre Island, a limited-service hotel asset in Corpus Christi, Texas. The property benefits significantly from its location on Padre Island proximate to the Port of Corpus Christi, which is strategically located near major oil and gas (O&G) production areas in the United States.

Ideal Opportunity for an Experienced Owner/Operator to Improve Performance

• The 60-key count is considered an ideal size for an experienced owner/operator.

• After completing the change-of-ownership PIP, new ownership will have a blank slate to implement its own revenue-management strategy, with the ability to drive room rates higher.

Underperforming Hotel Asset with Operational Upside Potential

• Despite being in a strong market, the hotel has underperformed considerably. Per the March 2024 STR Report, the competitive set operated at an aggregate RevPAR of $72.06, while the hotel only managed to yield a RevPAR level of $37.26. If the hotel’s RevPAR matched that of its competitors, it would earn $1,578,114 in rooms revenue, highlighting significant upside potential.

• Per the March 2024 STR Report, the hotel ranked sixth out of six competitive hotels in terms of occupancy and RevPAR; thus, upside exists for a more “hands on” owner/operator to improve overall performance.

• Prior to the COVID-19 pandemic, the hotel consistently maintained an impressive three-year average rooms revenue of $1,455,826 from 2017 to 2019.

Discount to Replacement Cost and High-Barrier Location

• This opportunity presents an investor the ability to acquire the property at a price well below replacement cost at $75,000 per key.

• New hotel developments in this area are rare and expensive, thus limiting the potential for additional competition.

Conversion Opportunity

• Spark by Hilton is a premium economy hotel brand that combines value with consistency. It offers guests a reliable and comfortable stay with friendly service, all at an accessible price point. Additionally, Spark by Hilton employs an innovative conversion model, making it an attractive investment opportunity for hotel owners.

• InterContinental Hotels Group (IHG) has recently launched Garner Hotels, an innovative midscale brand positioned as an affordable, amenity-rich option for discerning travelers. Garner Hotels promises an exceptional experience for guests and presents a compelling investment opportunity for owners seeking higher returns.

Excellent Location Among Strong Corporate and Leisure Demand Generators

• Situated on scenic Padre Island, the property is just minutes from various outdoor attractions such as Padre Island National Seashore, Mustang Island State Park, Hurricane Alley Waterpark, and the USS Lexington. The property is also a short distance from the Corpus Christi Museum of Science & History and many other popular Corpus Christi attractions, such as the Texas State Aquarium, Selena Museum, and Whataburger Field.

• Additionally, the hotel is an ideal option for both business and leisure travelers, as the property is strategically located about a 30-minute drive from Corpus Christi International Airport and a 25-minute drive from Downtown Corpus Christi.

• 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.

North Padre Island Expansion​​​​​​​

• Ground has been broken on Whitecap North Padre Island, a new, 240-acre residential community in Corpus Christi. The development, which will include over 600 residential lots, five miles of canals, a 26-acre nature preserve, and various amenities like a town center, hotel, and yacht club, aims to enhance economic activity and improve infrastructure. Designed with coastal contemporary architecture, the community will feature elevated homes with sky decks to offer better views. The project will reportedly be completed in four phases over seven years.

• The City of Corpus Christi, in partnership with Whitecap North Padre Island, launched the Commodores Drive Bridge Project in February of this year with the aim of constructing a new, five-lane bridge to facilitate boat traffic connectivity between the north and south sides of Padre Island. This initiative is anticipated to improve water circulation and quality in the canals, and the bridge will be designed to accommodate a 14-foot air-draft clearance for boat traffic. The $9.2-million project began with the establishment of a temporary bypass roadway along Commodores Drive to ensure uninterrupted traffic flow during construction, alongside upgrades to pavement markings and utilities included in the project scope.

• Construction began on “The Lighthouse,” a new, 32,000-square-foot development on North Padre Island, in April 2024 and should be completed in 18 months. This two-story, mixed-use project by Waymaker Developments will feature a community center with mind, body, and spirituality services; an event center; a daycare facility; and the Real Life Church. The ground level will offer retail shops, medical care, a pickleball court, and a playground. The project aims to provide essential services to residents and attract visitors, reducing the need to travel off the island.

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. The building's completion in 2026 promises 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 promises economic growth and 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 is expected to be completed by late summer, offering 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 emphasize the center's significance in meeting community needs, particularly in the Southside area, providing year-round facilities for lap swimming and family enjoyment. With the park already boasting soccer and baseball fields and a hike and bike trail, the addition of the aquatic center is anticipated to further enhance community engagement and enjoyment.

For inquiries please execute the Confidentiality Agreement.

Posted by Nevistas News on June 20, 2024.

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