What's Happening?
The Wingate by Wyndham Seminole, an 88-key hotel located in Seminole, Texas, has been listed for sale by HVS Brokerage & Advisory. The property is currently absentee-owned, which suggests that a more engaged
owner could potentially enhance its financial performance through improved expense management. The hotel is being marketed with a financial guidance indicating a rooms revenue multiplier (RRM) of 3.0x, based on a trailing-twelve-month rooms revenue of approximately $1,387,000. In 2024, the hotel's operating profit was 33.2%, with a net operating income (NOI) of about $344,000. The property also features a profitable on-site bar, contributing roughly $88,000 in profit in 2024. The hotel benefits from a diverse mix of demand sources, including local educational institutions, energy companies, and agricultural operations, and includes 3,000 square feet of flexible meeting space.
Why It's Important?
The sale of the Wingate by Wyndham Seminole represents a significant investment opportunity due to its strategic location in the Delaware Basin, part of the larger Permian Basin, which is one of North America's most active oil and gas extraction regions. This location supports stable performance, driven by consistent demand in the post-pandemic economy. The hotel's proximity to larger population centers and its ability to attract energy-sector business contribute to its strong year-round occupancy rates. The property is offered at $48,000 per key, representing a significant discount to replacement cost, making it an attractive option for investors looking to capitalize on the booming oil market in Texas.
What's Next?
Prospective investors may consider the potential for increased profitability under more active management, particularly by optimizing operations in labor and expense management. The hotel's stable revenue history and strategic location in a high-demand market suggest that it could continue to perform well, especially with improvements in operational efficiency. The ongoing demand from the energy sector and other local industries is likely to sustain the hotel's occupancy rates, providing a solid foundation for future growth.
