AUSTIN, Texas — Marcus & Millichap has announced the sale of a five-hotel portfolio in Texas and Oklahoma. The commercial real estate investment services firm represented the seller, KJ Properties LLC, which sold the properties for a total of $36,185,000 to a private, Texas-based real estate and investment firm.
“The purchase highlights the buyer’s extended-stay hotel acquisition strategy and places new ownership in position to capitalize on future demand for this type of asset in these markets,” said Allan Miller, senior vice president of investments in Marcus & Millichap’s Austin office. Miller and Chris Gomes, senior managing director investments in the firm’s Dallas office, are the principals of the Miller-Gomes Hotel Team of Marcus & Millichap. Miller and Gomes represented the seller, KJ Properties, and procured the buyer.
The properties included in the sale are: the 113-room Candlewood Suites in Midland, Texas; the 113-room Candlewood Suites in Lawton, Okla.; the 89-room Candlewood Suites in McAlester, Okla.; the 89-room Candlewood Suites Bartlesville East in Bartlesville, Okla.; and the 113-room Candlewood Suites San Antonio in Texas.
“Stable occupancy, positive average daily rate, and revenue per available room growth are sustaining investor demand for hotels in the Central Midwest,” added Gomes. “Spanning the past two years ending in June, occupancy in the region hovered just below 58 percent, enabling average daily rate and revenue per available room to reach record highs of $90.62 and $52.76, respectively.”
Matthew Omansky, associate in Austin, assisted in the sale of the Candlewood Suites San Antonio. Mark McCoy, regional manager of Marcus & Millichap’s Fort Worth office is the firm’s broker of record in Oklahoma.