Hampton Inn Tracy & Fairfield Inn Tracy
Institutionally Owned and Managed
Marketing description
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HREC Investment Advisors (“HREC IA”) is pleased to offer, to qualified investors, the opportunity to acquire the leasehold interest in the 64-room Fairfield Inn Tracy, situated at 2410 Naglee Rd, Tracy, CA 95376, and the 62-room Hampton Inn Tracy, situated at 2400 Naglee Rd, Tracy, CA 95376 (“Hotels” or “Properties”). The Properties must be acquired together.
This offering presents a rare opportunity to acquire two high-quality Hotels in Tracy, California, a rapidly growing city in the heart of the Central Valley. Strategically located at the junction of I‑205, I‑580, and I‑5, Tracy serves as a critical logistics hub connecting the San Francisco Bay Area with the broader Central Valley, attracting major distribution, warehousing, and manufacturing operations.
Both Hotels are well-maintained with recent renovations while still offering upside through operational optimization and more active oversight. The portfolio offers significant operational efficiencies for a single investor, as consolidating management across the two properties allows for shared expenses, streamlined operations, and potential improvements in revenue management. Additionally, these leasehold assets are offered well below replacement cost, presenting the opportunity to add substantial physical and strategic value in a market where construction costs have risen dramatically.
Investors benefit from stable in-place top-line revenues supported by Tracy’s growing economy, including its logistics and manufacturing sectors, and growing residential base. As the city continues to develop, these Hotels are well-positioned to capture ongoing demand from business and leisure travelers.
- Non-Contingent
- Earnest Money Deposit: Greater of $20,000 or 10% of the Purchase Price
- Marketing Fee: 5% of the Winning Bid Amount, $20,000 minimum
- $10,000 Participation Deposit Required
2400 and 2410 Naglee Rd, Tracy, CA 95304
Investment highlights
- Strategic Logistics and Distribution Hub: Tracy serves as a key logistics and distribution center within Northern California, benefiting from its central location at the intersection of major transportation corridors linking the San Francisco Bay Area, the Central Valley, and broader Western markets. Major employers and generators include Amazon (two fulfillment centers), Dematic, O-I Glass, Altium Packaging, FedEx, and more. Positioned along Interstate 205 and Interstate 580 with immediate access to Interstate 5, Tracy enables efficient truck distribution throughout California and the western United States.
- Synergistic Operational Benefits: A new investor can benefit from economies of scale by consolidating operations across the Properties, allowing shared expenses and more efficient management. This approach can reduce per-unit costs, streamline operations, and enhance overall returns.
- Flexible Brand Optionality for the Fairfield Inn: A new owner will have the flexibility to pursue an alternative branding strategy for the Fairfield Inn, creating an opportunity to reposition the Hotel and establish a new brand presence within its market.
- Value-Add Opportunity: Both Hotels are well-maintained with recent renovations; however, under current institutional ownership, there remains an opportunity for a more hands-on owner to drive additional upside through enhanced operational efficiencies and revenue management.
- Institutionally Owned and Managed: The Hotels are both institutionally owned and managed. However, the Properties are being offered unencumbered by a management agreement, providing a new owner full operational control.
- Offered Well-Below Replacement Cost
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