Investment Opportunity Lone Star Motel with 20 keys

Property Overview

The Lone Star Motel, located at 205 E Broadway Street, Fritch, TX 79036, presents an exceptional investment opportunity in the hospitality industry. With 20 units and additional adjacent land, this property offers strong potential for revenue growth and expansion.

Key Property Details

- Purchase Price: $399,000
- Property Size: 20 units
- Land Size: 20,909 sq. ft.
- Expansion Opportunity: Includes 2 adjacent vacant lots for additional development
- Location: High-visibility area on E. Broadway Street, in the heart of Fritch, TX

Investment Highlights

- Prime Location: Situated on a major thoroughfare, offering excellent visibility and easy access for guests.

- Diverse Use Potential: Ideal for a boutique motel, short-term rentals, or workforce housing to serve the local community and transient visitors.

- Growth Opportunities: Potential to modernize, rebrand, and expand occupancy rates, maximizing revenue.

- Value-Add Potential: Enhance the property’s profitability with renovations, updated marketing strategies, and development of the included vacant lots.

- Strong Market Fundamentals: Located in a growing area, with demand for lodging from local businesses, events, and travelers.

Financial Overview

- Potential Rental Income (Year 1): $374,400

- Projected Net Operating Income (Year 1): $56,160

- 5-Year Projected Sales Price: $283,000

- Internal Rate of Return (IRR): 8.9%

- Acquisition CAP Rate: 14.08%

- Projected 5-Year Cash Flow Before Taxes: $63,209

Why Invest?

- Versatile Business Model: Suitable for both traditional motel operations and alternative lodging solutions.

- High Cash Flow Potential: Strong financial projections with room for increased revenue through property upgrades.

- Strategic Location: Fritch is a growing community, providing steady demand for lodging from tourists and workers.

Ask about the 2 vacant lots behind the hotel and the included storage facility on the main parking lot.