CBRE Hotels is inviting offers to acquire the fee-simple interest in the La Quinta Inns & Suites in Alexandria, Louisiana, an underperforming hotel with significant upside potential.
CBRE Hotels, a division of the commercial real estate services and investment firm CBRE Group, is inviting offers to acquire the fee-simple interest in the La Quinta Inns & Suites in Alexandria, Louisiana. The recently renovated hotel is located close to the Alexandria International Airport and several prestigious academic institutions. It also has corporate offices nearby. Its strategic location allows it to serve a wide range of clients from both the corporate and leisure sectors.
The four-story, 117 room hotel is in excellent shape and would only require minor capital improvements from the new owner. As of the end 2023, the RevPAR index (revenue per room available) was 77.9. This property is underperforming in comparison to its competitors. The underperformance of the property is due to its out-of-state owner and lack of hotel management.
Despite its current underperformance, the La Quinta Inns & Suites in Alexandria demonstrated strong in-place cash flow in 2023, posting a net operating income (NOI) of approximately $893 thousand. The property is attractive to potential investors because of its robust cash flow, and potential for increasing market share.
Its investment appeal is further enhanced by its proximity to major demand generators such as UTLX Manufacturing and Northwestern State University. Other nearby hotels include Oceans Behavioral Hospital, CHRISTUS Central Louisiana Surgical Hospital and Central Louisiana Regional Port. The La Quinta’s strategic location allows it to attract a wide range of customers, including academic personnel, healthcare workers, corporate visitors and leisure travelers.
Alexandria is located at the center of Louisiana and serves as an economic hub for this region. The city, which is known for its contributions to the educational, medical, and retail sectors as well as being a major transport hub, facilitates air, rail, and road travel. The Heavy Industrial Mega Site in the England Industrial Airpark is a magnet for large manufacturers seeking to relocate or start up, which further strengthens Alexandria’s economy.
In conclusion, the La Quinta Inns & Suites in Alexandria, Louisiana, presents a unique investment opportunity. The hotel’s low performance, high cash flow and strategic location close to key demand generators provide a significant upside potential for a new owner. This could lead to revenue growth and improved market penetration.
Inquire at CBRE.
