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29730246
29730247

715 Frontage Rd, Brownsville, TX 78520

Marcus & Millichap - Austin
Listed by Marcus & Millichap - Austin
Unpriced
112 days on market
Updated 112 days ago

Brownsville – Midscale Hotel Redevelopment Opportunity

Details
Property Type Hospitality
Sub Type Hotel
Parking Spaces spaces
Investment Type Value Add
Ground Lease No

Hospitality

Marketing description

As the exclusive representative of the seller, Marcus & Millichap is pleased to present this 80-room hotel conversion opportunity located along the I-69E / US-77/83 corridor in Brownsville, Texas (the “Hotel” or “Property”). The Property is being offered as a direct sale and marketed broadly on a “Request for Offers” basis, providing qualified investors with a transparent and competitive acquisition process. Pricing guidance and additional offering materials are available upon request.

The Property consists of an existing, two-story, 80-key economy hotel situated on approximately 2.18 acres with direct highway frontage along a primary north–south border corridor. The site benefits from strong visibility, immediate access, and an established hospitality footprint that supports continued operation, renovation, and potential brand repositioning without entitlement or development risk.

The Hotel is strategically positioned along one of South Texas’ most critical trade and logistics corridors, benefiting from durable, non-discretionary lodging demand driven by border commerce, logistics, government activity, and regional commercial travel. These demand drivers provide a consistent operating floor across economic cycles and support long-term market resilience. Additional economic fundamentals in the area reinforce both downside protection and upside potential. The Brownsville region benefits from ongoing oil and energy activity, increased institutional investment tied to major data center development, and continued expansion of aerospace-related operations. These factors provide incremental demand and long-term tailwinds without being required for the investment thesis to succeed.

Pro-forma performance reflects $61 ADR and approximately 50 percent occupancy, which management believes is attributable to operational and branding inefficiencies rather than market weakness. Multiple nationally recognized franchise options are available under Wyndham, Choice, and Best Western, providing a clear path to improved distribution, rate integrity, and operating performance through rebranding and targeted capital investment. From a cost perspective, the Property benefits from meaningful replacement-cost insulation. An existing 80-key hotel on over two acres with comparable frontage and access would be materially more expensive and difficult to replicate today, providing structural downside protection if acquired at the appropriate basis.

This opportunity is well suited for a value-add hospitality operator or an experienced multifamily investor expanding into lodging, seeking a basis-driven acquisition with clear operational levers and asymmetric return potential. Modest, achievable improvements in ADR and occupancy can materially increase cash flow and asset value without reliance on aggressive assumptions.

Investment highlights

INVESTMENT HIGHLIGHTS

Request for Offers Process: Direct sale marketed broadly with pricing guidance available upon request.

80-Key Existing Hotel: Two-story configuration on approximately 2.18 acres with established hospitality use. Prime Border Corridor Location: Direct frontage along I-69E / US-77/83, a major trade and logistics artery. Brand Repositioning Optionality: Franchise availability under Wyndham, Choice, and Best Western.

Below-Market In-Place Performance: $61 ADR and ~50% occupancy provide clear RevPAR expansion opportunity. Durable Demand Base: Border trade, logistics, government travel, and regional commerce provide a stable occupancy floor.

Replacement-Cost Downside Protection: Existing asset would be costly and difficult to replicate today. Asymmetric Upside Exposure: Oil, data center investment, and aerospace growth, including SpaceX-related activity.

Ideal Value-Add Profile: Well suited for experienced hospitality or multifamily operators seeking execution-driven upside.

KEY VALUE DRIVERS

Enduring Location Utility: Highway frontage along a primary border corridor supports consistent, non-discretionary lodging demand tied to trade, logistics, and government activity.

Performance Below Potential: Current ADR and occupancy reflect correctable inefficiencies rather than market failure.

Attractive Basis vs. Replacement Cost: Existing 80-key hotel on 2.18 acres provides meaningful downside protection.

Diversified Demand Sources: Border commerce provides the base; industrial and aerospace activity add incremental upside.

Execution-Driven Upside: Conservative improvements in ADR and occupancy can materially increase NOI and asset value.

Listing Contacts

Marcus & Millichap - Austin
Listed by Marcus & Millichap - Austin

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Additional Information

Name
Alexander J. Curry 🏨
License
647016
Brokerage
Marcus & Millichap
Title
Investment Sales Broker
*All information is deemed reliable but not guaranteed. Buyer to verify all information.
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