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La Quinta Inn San Antonio at Rittiman
Value Add Opportunity
6410 N Interstate 35, San Antonio, TX, 78218
- Price: $5,000,000
- Cap Rate: 10.28%
- Price Per Key: $38,462
- Total Rooms: 130
- Proforma NOI: $514,000
- Occupancy: 49%
Property Overview
- La Quinta by Wyndham San Antonio at Rittiman presents a compelling investment opportunity in the heart of San Antonio, Texas. This limited-service hotel offers strong in-place cash flow, significant upside potential through a strategic property improvement plan (PIP), and flexible repositioning options within the Wyndham family.
- Based on current STR metrics - the property should produce an NOI of more than $500k, investors can capitalize on existing operations while unlocking additional value through property upgrades. The estimated $1.2 million PIP will enhance guest experience, increase revenue, and improve long-term asset value.
- Investors have the opportunity to maintain the La Quinta by Wyndham flag or convert to Days Inn by Wyndham, offering flexibility in brand positioning. The property benefits from its prime location, attracting both business and leisure travelers due to its proximity to major demand drivers, transportation hubs, and corporate centers.
Investment Highlights
- Financial Performance & Upside Potential ProForma NOI: ~$514,000 (meeting STR metrics) Projected Revenue Growth: Potential to increase ADR and occupancy post-PIP. Property Improvement Plan (PIP): Estimated at $1.2M, allowing for a refreshed look, operational efficiencies, and increased guest satisfaction. Repositioning Options: Stay with La Quinta or convert to Days Inn by Wyndham for optimal brand strategy.
- The Benefits of Completing the Change of Ownership PIP Investors looking to maximize the value and performance of this property should strongly consider completing the required Change of Ownership Property Improvement Plan (PIP). While the estimated cost of the PIP is $1.2 million, the return on investment (ROI) makes it a strategic and lucrative decision. Here's why:
- 1. Increased Revenue & Higher ADR (Average Daily Rate) A renovated property can command higher room rates by appealing to both business and leisure travelers. Guests are willing to pay a premium for modernized rooms, upgraded amenities, and improved overall guest experience. Competitive hotels in the area with newer renovations are currently achieving higher ADRs, positioning this property for a similar uplift post-renovation.
- 2. Enhanced Guest Experience & Online Ratings First impressions matter, and a refreshed hotel will boost guest satisfaction, leading to stronger online reviews and ratings. In the digital age, positive reviews on TripAdvisor, Google, and OTA (Online Travel Agency) platforms directly impact booking decisions. Improved ratings contribute to higher occupancy rates, increasing both top-line revenue and bottom-line profitability.
- 3. Competitive Edge in the Market The hotel industry in San Antonio is highly competitive, with travelers preferring modern and well-maintained properties. Completing the PIP ensures this hotel remains competitive with newer or recently renovated hotels in the area. Without upgrades, the property risks being perceived as outdated, which could negatively impact demand and pricing power.
- 4. Improved Operational Efficiencies & Cost Savings The PIP will likely include energy-efficient systems, modern HVAC, updated lighting, and smart technology—all contributing to reduced utility and maintenance costs. Newer room designs and upgraded facilities lower ongoing repair and maintenance expenses, resulting in improved net operating income (NOI) over time. Wyndham provides support with operational best practices and technology integration that help streamline management and enhance profitability.
Prime Location in a High-Demand Market
- Located near Fort Sam Houston, a major military installation with consistent lodging demand
- Proximity to Downtown San Antonio, the River Walk, the Alamo, and major employers.
- Easy access to Interstate 35 and Loop 410, providing connectivity to key business and leisure hubs.
- Close to major medical centers, including Brooke Army Medical Center (BAMC), a leading medical research and treatment facility.
Major Employers
- Military and Government: Joint Base San Antonio (JBSA): Encompassing Fort Sam Houston, JBSA is a significant military installation contributing approximately $41.3 billion to the state's economy.
- Healthcare: University Health: As the only locally owned and operated health system in San Antonio and Bexar County, University Health employs over 10,600 individuals, providing comprehensive medical services and serving as a major academic medical center. CHRISTUS Children's: Specializing in pediatric care, CHRISTUS Children's employs approximately 1,568 staff members, offering specialized healthcare services to the community.
- Financial Services: USAA: A diversified financial services group serving military members and their families, USAA employs over 35,000 individuals, offering insurance, banking, and investment services.
- Retail and Hospitality: H-E-B: A prominent grocery retailer headquartered in San Antonio, H-E-B operates numerous stores across Texas and employs a substantial workforce in the area.
- Energy and Manufacturing: Valero Energy Corporation: Headquartered in San Antonio, Valero is a leading international manufacturer and marketer of transportation fuels and petrochemical products, employing a significant number of residents in the area Toyota Motor Manufacturing Texas: Operating a large manufacturing plant in San Antonio, Toyota assembles vehicles such as the Tundra and Sequoia, providing numerous jobs in the region.
- Technology and Cybersecurity: Rackspace Technology: Specializing in cloud computing and IT services, Rackspace is a major employer in the technology sector within San Antonio.
