Aloft Waco
Unique Upscale Hotel Reposition: Marriott Aloft , WACO, TX
Marketing description
Access to OM link below :
https://deals.radcre.com/
Exceptional Marriott luxury Hotel The Aloft Waco benefits from an exceptional downtown location, strategically positioned within walking distance of key demand generators and major transportation arteries. Situated directly on 1st St, the hotel offers convenient access to I-35, a primary north-south interstate highway, ensuring seamless connectivity for travelers. The property's immediate surroundings are characterized by a vibrant mix of retail, dining, and entertainment options, contributing to a dynamic and appealing environment for hotel guests. This prime location places the Aloft Waco in the heart of Waco's burgeoning tourism and business districts. The immediate proximity to Baylor University, a Tier 1 research institution, provides a consistent influx of visitors for academic events, sporting events, and campus visits. Furthermore, the hotel is just a short stroll from the highly popular Magnolia Market at the Silos, a powerful economic engine drawing millions of tourists annually. The ongoing revitalization of downtown Waco, coupled with significant public and private investments, continues to enhance the area's appeal, driving sustained demand for hospitality services.
Investment highlights
- Priced meaningfully below today's replacement cost for a modern, five-year-old Marriott-flagged select-service hotel in downtown Waco. New construction of a comparable Aloft prototype would exceed $250K+/key all-in (land, hard costs, FF&E, soft costs, and financing) before a multi-year entitlement and construction timeline - this asset delivers in-place, stabilizing cash flow at a fraction of that basis with zero lease-up risk.
- Opened October 2020 with Aloft Gen 3.0 standards throughout - no deferred maintenance and five years of proven operations.
- Walkable to restaurants and retail, 1.5 miles from Baylor University - the market's dominant demand driver.
- Bonvoy loyalty distribution, corporate contract access, and centralized reservations support ADR and occupancy growth.
- Recommended $8.5M senior loan at 61.6% LTV plus $3.5M C-PACE provides strong sponsor equity cushion.
- Occupancy 53.4% 58.5% and ADR $117.61 $120 drives Best-Case Adjusted NOI to $865,914 (28.3% margin), with a clear path to $1.0M+ as ADR recovers to comp-set parity.
- 10.2% senior debt yield on the recommended $8.5M loan (Adjusted NOI $865,914) with ~1.26x stabilized DSCR at Bank/Conventional terms (6.5% / 25-yr) - sized to the 1.25x covenant with room to grow as ADR recovers.
- 5 active capital projects totaling $5.0B+ in McLennan County - Graphic Packaging ($1.67B mill, producing), Electrolit USA ($400M plant, opens 2026), TxDOT My35 Waco South ($250M, 2025 - 2029), Hunt Development's $2.8B downtown redevelopment, and SpaceX McGregor + Baylor's Foster Pavilion. 1,400+ permanent new jobs are driving live occupancy acceleration: Mar 2026 at 68.8% vs. 53.4% T-12 average.
- ~25% operational upside available through active revenue management, F&B optimization, expense discipline, and demand-driver capture - targeting Adjusted NOI growth from $865,914 to $1.08M+ on stabilized operations.
Access to OM link below :
https://deals.radcre.com/
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