Hotel Dilley Grand
Mixed Use: Apartments/Extended Stay - 20 units, ~$40,000/unit, over 9% cap rate
Marketing description
As the exclusive representative of the seller, Marcus & Millichap is pleased to present for sale to qualified investors the Hotel Dilley Grand, a fully renovated 20-unit property operating as both an apartment community and extended-stay hotel, located at 110 South Main Street in Dilley, Texas.
The property consistently achieves strong rental performance, with average apartment rents exceeding $950 per month and extended-stay operations generating over $1,200 per occupied unit monthly. Additionally, the property’s 4.8-star Google rating underscores its strong local reputation and established customer base. With the hard work of asset repositioning complete, Hotel Dilley Grand represents a stabilized, income-producing investment that is turnkey for the next owner. Located in a resilient South Texas market, the asset benefits from multiple long-term demand drivers, including the Eagle Ford Shale oil field, the nation’s largest migrant center, a major detention facility, and regional agricultural industries such as watermelon farming. Seasonal hunting activity and the blue-collar industries that underpin the local economy further contribute to consistent housing and lodging demand. These sectors provide a steady base of residents and extended-stay guests seeking quality accommodations at accessible price points.
The property has been renovated comprehensively, featuring new flooring and baseboards throughout, fresh interior and exterior paint, upgraded wireless network infrastructure, a modern security camera system, and a series of capital improvements across both common areas and guest units. Ownership has also enhanced the property’s digital presence through a professional website, promotional videos, and an active social media following—further supporting occupancy and guest engagement.
Hotel Dilley Grand presents a compelling opportunity for an investor seeking reliable cash flow in a market with durable demand drivers and continued growth potential. With stabilized performance, minimal near-term capital needs, and strong operational fundamentals, the asset offers immediate income generation and future upside through expanded extended-stay operations, corporate housing agreements, and targeted marketing initiatives. The seller, satisfied with the property’s performance, is now offering this stabilized investment to allow the next owner to build upon its established success.
Investment highlights
Fully Renovated Asset: Hotel Dilley has been completely renovated with updated interiors, flooring, furnishings, and modern kitchenettes, minimizing near-term capital needs and enhancing rentability across both transient and extended-stay segments.
Dual Revenue Streams: The property benefits from a hybrid model—traditional hotel rooms and furnished efficiency apartments—allowing ownership to capture both nightly and long-term rental income, improving occupancy stability and yield.
Workforce Housing Demand: Positioned along the Eagle Ford Shale corridor, Hotel Dilley serves a growing base of oil and gas contractors, drilling crews, and infrastructure workers. Corporate bookings and extended stays offer consistent occupancy and recurring cash flow
Market Upside: Recent increases in regional rig counts and workforce-housing demand have strengthened extended-stay ADRs. With continued oil-field activity near Dilley, the property is positioned to secure long-term contracts and realize higher monthly revenues.
Value-Add Potential: New ownership can capitalize on rising workforce housing needs and limited quality supply by expanding apartment-style leasing, implementing yield based pricing, and pursuing crew-housing agreements—driving NOI growth and asset appreciation.
Listing Contacts
Valuation Calculator
Valuation Metrics
Map
Broker Selected Comps View More Comps
Property History
Tax History
Similar Properties
Additional Information
Is there information that looks off?
