3606 89th St - Hospitality FOR SALE


Galveston, TX 77554- Golf Shores
$4,650,000 USD
713-452-4371
3606 89th St, Galveston, TX for Sale
$4,650,000 USD
Hospitality - FOR SALE
1/30
null | Request Cap Rate

3606 89th St
Galveston, TX 77554
Golf Shores


HIGHLIGHTS

  • Prime MSA Location
  • Major Employers
  • Tourism Drivers
  • Climbing Submarket RevPAR
  • Significant Room Revenue Upside Potential
  • Attractive Cap Rate

OVERVIEW

As the exclusive representative of the seller, Marcus & Millichap's Hospitality Division is pleased to present for sale to qualified investors the Comfort Suites Galveston (‘Hotel’ or ‘Property’). The Choice Hotels International-branded Hotel is offered at $4,650,000 or $81,579 per key. Comfort Suites Galveston is a three-story hotel with 57-rooms located at 3606 89th St., on Galveston Island. Various common area amenities at the Property include a lounge/bar, seasonal outdoor pool, whirlpool/hot tub, 884 Sq. Ft. of meeting/event space, breakfast area, laundry facility with valet cleaning service, fitness center, and business center. Galveston, TX part of the Houston-The Woodlands-Sugar Land Metropolitan Statistical Area (MSA), the fifth-largest MSA in the U.S. with over 7 million residents. The Houston MSA is a hub for energy, healthcare, shipping, and aerospace, with Galveston contributing as a port city and tourist destination. Galveston is 50 miles southeast of downtown Houston, connected via Interstate 45. The William P. Hobby Airport (40 miles away) and George Bush Intercontinental Airport (70 miles away) provide domestic and international air access. The University of Texas Medical Branch (UTMB) employs 12,000 staff at its 84-acre campus, driving healthcare and research growth. The Port of Galveston supports thousands of jobs in shipping and tourism, handling over 1 million cruise passengers annually. The Galveston Independent School District employs 1,300 people. UTMB anchors healthcare in Galveston with a 600-bed hospital specializing in trauma, oncology, and pediatrics. Shriners Children’s Hospital provides additional specialized pediatric care. Galveston is home to Texas A&M University at Galveston, with 2,000+ students specializing in marine and maritime studies. UTMB offers graduate and professional programs in medicine, nursing, and biomedical sciences. Galveston’s tourism sector thrives on attractions like Moody Gardens, Schlitterbahn Waterpark, and the Port of Galveston, which serves over 1 million cruise passengers annually. The Strand District, Galveston Island State Park, and Stewart Beach draw millions of visitors each year. As of December 2024, the 12-month average RevPAR in the Galveston & Texas City Hotel Submarket increased by over 4.5 percent, indicating robust growth and a lower-risk environment, boosting investor confidence in the asset and thriving market. The Hotel's current RevPAR index of 85 percent indicates untapped potential. With strategic revenue management and marketing, a new owner could raise the index to 101-114%, driving room revenues to approximately $1.6-2.1 million. This improvement could result in advantages such as excess capital for renovations, and operational benefits such as improved cash flow and economies of scale. The Hotel is priced at an attractive capitalization rate of 10.4 percent. This gives investors the opportunity to purchase the asset at a conservative price, offering substantial potential for increased earnings and a greater return on investment.

FOR SALE DETAILS

PRICE

$4,650,000 USD

PRICE/SF

$121 USD /SF

# OF ROOMS

57

PRICE/ROOM

$81,579 {currency}

CAP RATE

Request Cap Rate

SALE TYPE

Investment

BUILDING DETAILS

PROPERTY NAME

Comfort Suites Galveston

PROPERTY TYPE

Hospitality

TOTAL BUILDING SIZE

-

STORIES

3

ROOM ENTRANCE

Interior

BUILDING CLASS

C

YEAR BUILT

2007

PARKING SPACES

-

LAND DETAILS

LAND ACRES

1.79 AC

LAND SF

77,972 SF

ZONING

HDDZ-4

APN/PARCEL ID

2433-0000-0001-000

ASK ABOUT THIS PROPERTY

Bina DhanjiMarcus & MillichapMore Info
713-452-4371

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Bina DhanjiMarcus & MillichapMore Info
713-452-4371

By clicking the button, you agree to Showcase's Terms of Use and Privacy Policy.