Hill Country Hospitality Retreat with Expansion Potential
Hospitality | 5 Keys | $399,000/key
Marketing description
The Lazy Lavender is a rare, design-forward hospitality compound: five individually-themed cottages on 2.45 unrestricted acres, five minutes from Wimberley Square and forty-five from downtown Austin. Since 2022 it has operated as a single, professionally-managed boutique retreat, generating between $269K and $318K in annual gross revenue and a 2025 net operating income of $133,603.
The investment case is unusually clean. The asset is fully built, fully furnished, and fully operating — with new roofs, commercial-grade septic, and an independent water system already in place. Yet occupancy has drifted from 58.7% in 2022 to 39.7% in 2025, leaving the in-place numbers well below the property's demonstrated ceiling.
That gap is the opportunity. A new owner inherits stabilized cash flow on day one and a stack of capital-light growth levers — private hot tubs, a resort pool, a sixth rentable unit, and the room to add more cabins on the unrestricted acreage, replicating the property's own proven cottage designs.
Investment highlights
- Buy stabilized cash flow at a 6.7% in-place cap; underwrite a path to a ~10.8% stabilized yield on cost
- Occupancy normalization alone, before any capex, represents meaningful recoverable revenue
- Every growth initiative layers on top of an already-profitable base
- A 19-point occupancy decline from 2022 cost roughly $50K in gross revenue. Recovering even half of that, through pricing and amenity-driven demand, flows almost entirely to NOI
- The systems that typically derail boutique-hospitality deals — water, septic, and roofs — are new, oversized, and ready to support expansion
- Because septic and water are already engineered for more than five units, the growth initiatives in this memorandum are build-on-top additions — not infrastructure overhauls
- The property captures the high-value group and special-occasion segment: a single address that can host a wedding party, a corporate offsite, or a multi-family reunion without sending guests to separate hotels
- Demand for unique, design-led stays and group-buyout properties continues to outpace conventional lodging. The Lazy Lavender is purpose-built for exactly that guest
- Five price points across one address means demand is captured from solo travelers to 20-person buyouts. No single unit carries the property; the compound can be sold whole or by the night
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