901 Little Texas LnAustin, TX 78745
TownePlace Suites Austin South
Asset ClassHotel & Hospitality
Overview
HREC is pleased to offer the opportunity to acquire the fee simple interest in the 103-key TownePlace Suites Austin South (the “Property” or “Hotel”), located at 901 Little Texas Ln Building G, Austin, TX 78745.
Investment Highlights
- Capital of Texas and Home to the University of Texas at Austin: The Texas State Capitol complex and numerous government agencies generate a consistent flow of visitors. In addition, the University of Texas at Austin is the largest public university in the state, with some 52,000 students, which boosts demand through major sports events, academic conferences, and other year-round school events.
- Silicon Hills: Texas’ Thriving Tech Ecosystem: Austin’s tech sector is flourishing, with major players including Dell, Amazon, Samsung, Apple’s $1 billion campus, and Tesla’s Gigafactory Texas leading the charge. Oracle’s headquarters and expanding operations from companies such as Google, Meta, AMD, and IBM cement Austin’s position as a premier tech destination, attracting top talent and driving economic growth.
- Vibrant Event Scene Driving Tourism: Austin’s calendar is packed with high-profile events such as Austin City Limits (ACL), South by Southwest (SXSW), and Formula 1 racing at Circuit of the Americas. UT Longhorns football games are major fall attractions, while events like the Austin Film Festival and Austin Food + Wine Festival showcase the city’s diverse cultural landscape. The upcoming $1+ billion Austin Convention Center expansion, set for 2029 completion, promises to further boost the events landscape.
- RevPAR Upside with Solid Existing NOI: In 2023, hotel operations were severely impacted by the loss of the owner and operator's key person. As of YE 2024, the Hotel’s RevPAR penetration remains below 100%, yet demonstrates promising potential with NOI flow-through above 25%. The property's recovery under recent new management remains a work in progress and presents an attractive opportunity for a new owner to generate significant NOI.
- Strategic Interstate 35 Location: The Hotel’s prime position just off the I-35 frontage road offers excellent connectivity to Downtown Austin, Dallas, and San Antonio. Due to its strong long-term fundamentals, proximity to the Austin CBD, and the area's potential for growth, the South Austin/Airport submarket remains a highly sought-after location due to its consistent demand drivers and geographical location.
- New Asset with Minor PIP Anticipated: The Hotel was constructed in 2020, and it is likely Marriott’s Change-of-Ownership PIP will be minor, given the age of the asset.
- Strong Extended-Stay Brand Affiliation: The Hotel is enhanced by its excellent TownePlace Suites flag and benefits from the award-winning Marriott Bonvoy guest loyalty program.
Photo Gallery
901 Little Texas LnAustin, TX 78745
Sales Team
Listing provided by Revere CRE