145 W FM 468
Cotulla, TX 78014

PROPERTY TOURS AND ACCESS TO THE SITE MUST BE ARRANGED AND AUTHORIZED IN ADVANCE. PLEASE DO NOT TRESPASS OR CONTACT ANY EMPLOYEE DIRECTLY. Marcus & Millichap is pleased to present for sale the Whitten Inn Cotulla, a fee-simple, two-story 60-room interior / exterior corridor room hotel and a 26 space RV park located in the heart of the second largest oil field in the United States. Guest rooms are spacious and are equipped with a refrigerator, microwave, coffee maker, flat-screen television with premium channels, a work desk, hair dryer, iron with ironing board. Common area amenities include an outdoor pool, breakfast dining area, fitness center, outdoor barbeque facilities, vending machine, pool table room with flat screen television as well as ample parking areas for work trucks, RV and tractor trailers. The Whitten Inn is located just off Interstate 35 and is visible to travelers and guests visiting the area with its newly installed 85 foot tall pylon sign. The property is perfectly suited for an Owner-Operator. The current owner has repositioned the hotel as a favorite among oil field workers by offering unique perks to guests including beer kegerators for happy hour, enhanced complimentary breakfast offerings, barbeque gatherings as well as televised prime sporting events served with pizza. The loyal guest following provides for consistent and full occupancy during the work week with a list of others waiting to capture any available vacancy. A new Owner-Operator will benefit significantly from the current Owner’s successful repositioning efforts of the hotel and RV park to realize immediate profits and revenue growth into the future as a result of continued growth and demand for oil and natural gas. No new hospitality product is presently coming to market in Cotulla which bodes well for increasing room rates due to tight supply and high demand as workers move from the Permian Basin to the energy rich Cotulla and La Salle County area. Oil companies plan to spend billions more next year on drilling wells, pumping oil equipment, field crew rig assignments and fracking fleets as Texas continues to be at the forefront of our nation’s energy supply chain. Estimates suggest that the Eagle Ford may have 66 trillion cubic feet of natural gas and 10 billion barrels of recoverable oil. As of late June 2018, 82 drilling rigs were working in the Eagle Ford area with another 25 rigs set to start in the immediate future. An Owner-Operator can maximize net profit proceeds be continuing operations under the independent Whitten Inn name or if so desired, can transition the property to a national flag such as Days Inn. The current hotel ADR is $51.01 and RV Park ADR is $16.50. Room supply remains tight in Cotulla while demand continues to increase as more rigs move into Cotulla and La Salle County. Such market conditions will drive the ADR further upward; thereby enhancing profits for an operator. Room revenues are collected with cash (~30%) and credit cards (70%). The hotel and adjacent RV park are offered for sale at a price of $2,400,000 with a capitalization rate of ~14% and 2.6 times Year 2018 room / RV park revenue. Property is marketed in conjunction with Tim Speck, Marcus & Millichap 972-755-5200.