Overview
US Hotel Advisors LLC is pleased to present the exclusive opportunity to acquire the leasehold interest in the 276-guestroom Sheraton ABQ Airport Hotel, a 14-story full-service hotel operating under the Sheraton flag (Marriott International) at 2910 Yale Boulevard SE, Albuquerque, New Mexico. The Property is currently managed by Aimbridge and offered unencumbered by management.
Built in 1973 and converted to Sheraton in 2010, the Property is held via a long-term ground lease with the City of Albuquerque running through March 2063, with two additional 10-year renewal options. Together with these options, the ground lease offers a potential aggregate remaining term of approximately 57 years from 2026.
The Hotel is one of only two full-service properties in the Albuquerque airport submarket and the only lodging facility situated directly on the grounds of Albuquerque International Sunport. The Hotel has a dedicated access lane from the airport exit that no off-airport competitor can replicate.
Ownership completed a full lobby and public space renovation in 2019 and a comprehensive $6 million all-rooms PIP in 2025, delivering the newest full-service guestroom product in the Albuquerque airport submarket. These investments addressed a tired product that had suppressed rate and eroded the Hotel's ability to win and retain key crew and corporate accounts. A lobby PIP will need to be completed by a new Buyer.
The Hotel's full-year 2025 performance reflects the measurable impact of renovation disruption and management dynamics. For example, occupancy penetration in 2025 was 89%, compared to 109% just two years prior. The Hotel finished 2025 at 70% RevPAR penetration, down from 86% in 2022 and prior to completing the recent renovation. Hotel RevPAR is up 29% YTD through March, with more gains expected as the post-PIP ramp continues. There is currently a $33 ADR gap (up from $25 in 2022) that targeted revenue management can narrow.
The Hotel's 2026 budget projects recovery to 64.2% occupancy, $136.72 ADR, and $87.74 RevPAR, generating $10.6 million in total revenue. These projections are achieved without assuming any recapture of the Southwest crew contract; restoring that account on top of the budgeted baseline would produce a material, incremental uplift to both occupancy and NOI. With the comp set running ADR of $159.10 today, the Hotel's penetration gap is well-defined, the asset is physically competitive for the first time in years, and the path to stabilized performance meaningfully above recent levels is supported by the data.
Investment Highlights
VALUE - ADD OPPORTUNITY
The Hotel finished 2025 at 70% RevPAR penetration, down from 86% in 2022 and prior to completing the recent renovation.
CLEAR PATH TO REVPAR GROWTH
Hotel RevPAR is up 29% YTD through March, with more gains expected as the post-PIP ramp continues. There is currently a $33 ADR gap (up from $25 in 2022 when rooms were not yet renovated) that targeted revenue management can narrow.
AIRLINE CONTRACTS
The Property is primed to get back the Southwest contract it lost during the renovation. Due to its proximity to the airport, key count and restaurant/bar offering, it’s the clear choice for the airlines. RFP is in late 2026 with an April 2027 start date.
EXCEPTIONAL VISIBILITY - ONE OF THE TALLEST BUILDINGS IN NEW MEXICO
At 14 stories, the Sheraton ABQ Airport Hotel is one of the tallest structures in New Mexico, visible from Interstate 25 and the surrounding submarket. The Hotel's dedicated access lane from the airport exit ensures that visibility converts directly to arrivals.
RECENT CAPITAL EXPENDITURES
A comprehensive $6 million all-rooms PIP in 2025 along with $750k on AC upgrades, $220k on water pressure booster pumps and $55k on new chillers.
UNENCUMBERED BY MANAGEMENT
The Property will be delivered free and clear of any management contract at buyer's election. A buyer may retain Aimbridge or transition to a focused operator.
DOMINANT, IRREPLACEABLE AIRPORT SUBMARKET POSITION
The Hotel is one of only two full-service properties in the airport submarket and the only hotel on airport grounds. The Holiday Inn only has 3,300 SF of meeting space.
STRONG YTD COMP SET PERFORMANCE
Comp set RevPAR is up 6.4% YTD through March, driven mostly by a 4.4% ADR gain.
SIGNIFICANT DISCOUNT TO REPLACEMENT COST
A 276-room, 14-story full-service hotel with 11,000 SF of meeting space, F&B outlets, pool, and fitness facilities. Replacement would be nearly 3X to build vs pricing guidance.
STRONG BRAND — MARRIOTT BONVOY DISTRIBUTION
Sheraton's Marriott International affiliation delivers access to Marriott Bonvoy, one of the world's most active loyalty programs. There are 11 years left on the franchise agreement and Marriott is expected to offer addtional term.
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