HVS Brokerage & Advisory lists an investment opportunity to acquire the 75-key Baymont by Wyndham Odessa—University Area, a hotel asset performing strongly in Texas. The property is strategically located near the University of Texas Permian Basin, Midland International Air & Space Port, and Downtown Odessa.
HVS Brokerage & Advisory, acting as the exclusive advisory firm to the ownership, presents this acquisition opportunity. The hotel, located near the University of Texas Permian Basin (UTPB), Midland International Air & Space Port, and Downtown Odessa, has been demonstrating robust performance, largely due to its strategic location.
The financial statement for the year-end of December 2024 shows a gross operating margin (GOM) of 40%, and a flow-through net operating income (NOI), of about $338,000. The hotel operations could be restructured in order to maximize Revenue Per Available Room (RevPAR), as well as NOI flow through, suggesting that a hands-on owner would have the potential for profitability.
The hotel has historically shown strong RevPAR results. Over the past four-year period, RevPAR in the Permian basin market has increased. A 25.0% rise in 2022 was followed by a 35.0% jump in 2023. In the December 2024 STR reports, the hotel ranked as the third-best RevPAR out of five competitors, registering a 131.2% RevPAR. This strong market trend offers a great opportunity to a new investor.
The hotel has been converted into a Baymont in 2023 by Wyndham, meaning that only a minimal Property Improvement Plan (PIP), due to the change of ownership is required. Excellent visibility and access off the Business Loop I-20, East Highway 80 frontage road are major advantages. Nearby dining, entertainment, and retail options are attractive to transient and business guests.
The local economy continues to grow, largely due to the strong presence of oil-and-gas companies, such as Chevron ExxonMobil ConocoPhillips and others. ExxonMobil will invest around $140 billion between 2030 and major projects in the Permian, with an aim to produce one million barrels per day of oil equivalent (BOE/D).
The hotel is also being offered without any management obligations, giving an investor the freedom to restructure the operational strategies of the current operator. The hotel can be exploited to its full potential by more hands-on operators.
Inquire at HVS.
