2825 61ST ST Galveston TX 77551-2002

For more information, please visit the HVS marketing website to electronically execute the confidentiality agreement and get access to the virtual deal room: LINK HERE

HVS Brokerage & Advisory, as the sole and exclusive advisory firm to ownership, is pleased to present the opportunity to acquire the 96-key Beachcomber Inn, an independent hotel asset in Galveston, Texas. This offering presents an excellent opportunity for a “hands-on” owner/operator to acquire a hotel asset with operational upside at a price significantly below replacement cost in a high-barriers-to-entry market. This turn-key opportunity will allow a new operator to ramp up the hotel’s performance quickly and maximize its RevPAR penetration and NOI flow-through.

IDeal Opportunity for an Owner/Operator

• The property features spacious onsite living quarters, including a two-bedroom manager's apartment.

• As an independent hotel asset that is being offered free and clear of any management or franchise encumbrances, an owner/operator is afforded maximum flexibility to revamp operational strategies.

Discount to Replacement Cost

• The property can be acquired below replacement cost.

• The estimated all-in investment to construct a similar asset with comparable amenities is a minimum of $125,000 per key due to the scarcity of available land.

Strong Performance and Stability

• The hotel has consistently outperformed the competitive set, achieving a trailing-twelve-month (TTM) RevPAR penetration index of 114.0% per the December 2022 STR Trend Report.

• The hotel has demonstrated remarkable stability over the last decade, producing an average of $1,659,579 in annual rooms revenue.

High-Barriers-to-Entry Market and Excellent Beach Access

• Galveston is a high-barriers-to-entry market due to limited developable land, strict zoning regulations, and a historic district that restricts new construction.

• Galveston Beach is within a five-minute walk of the property.

Strong Leisure and Corporate Demand Generators

• Corporate demand generators in the area include the University of Texas Medical Branch (UTMB), Galveston College, Texas A&M University, Landry’s, Moody Gardens, Moody Bank, ANICO, Mitchell Family Companies, Marathon Petroleum, and Valero.

• Leisure demand generators in the area include Port of Galveston Cruise Terminal, Moody Gardens, Schlitterbahn Water Park & Resort, Pleasure Pier, 61st Street Fishing Pier, Galveston Island Convention Center, and historic Downtown Galveston.

• Port of Galveston is ranked fourth out of busiest cruise ports in North America, and the cruise-ship industry is expected to recover from pandemic setbacks.

• Over 80 year-round festivals, special events, sporting events, and gatherings are held in Galveston in a typical year.