PORT ARTHUR—Marcus & Millichap announced the sale of a two-property, 188-room hospitality portfolio in Port Arthur, Texas. The assets are the 92-room Holiday Inn Express & Suites Port Arthur and 96-room TownePlace Suites Beaumont Port Arthur.
“The properties are located near Sabine Lake and the Gulf of Mexico in a high-growth market that is a vital part of the Texas transportation network and contributes substantially to the state’s annual seaport trade of over $260 billion,” said Chris Gomes, senior managing director investments in Marcus & Millichap’s Dallas office. “Both properties benefit from strong in-place cash flow, limited new supply, and best-in-class brand affiliations.”
Gomes and Allan Miller in Marcus & Millichap’s Austin office represented the seller, Texas-based Daugherty Property Group. Gomes and Miller also procured the buyer, an out-of-state entity in a 1031 exchange. “The portfolio outperformed the competitive set and both assets are trending to remain top performers in the coming years,” said Miller.
The hotels are located at the intersection of Highway 365 and Highway 287, close to the Motiva refinery. Jack Brooks Regional Airport, DuPont, the ExxonMobil refinery, Air Products & Chemical Inc., and Medical Center of Southeast Texas are nearby. The Holiday Inn Express & Suites Port Arthur was constructed in 2010 and underwent IHG Hotels & Resorts’ full Formula Blue property improvement plan requirements in 2019. Constructed in 2014, the TownePlace Suites Beaumont Port Arthur is an extended-stay hotel with amenities like business and fitness centers, an outdoor pool, laundry service, barbecues, and picnic area.