AMARILLO - Investors are stirring up the Amarillo lodging market. Three of the city's newest hotels recently sold in a $31.4 million package deal, while some older properties, including the high-rise Ambassador Hotel, also have changed hands this year.
American Hotel Income Properties REIT (AHIP) forked over $31.4 million, or about $107,000 per room. The deal represented 293 rooms in all.
AHIP purchased Holiday Inn Amarillo West Medical Centre at 8231 W. Amarillo Blvd.; Fairfield Inn & Suites Amarillo Airport at 1740 Airport Blvd.; and Sleep Inn & Suites West Medical Centre at 6915 W. Interstate 40.
In May 2014, First Capital Real Estate Investment acquired the 262-room Ambassador Hotel, and since then the property has been converted to a Wyndham Garden Hotel as part of a $5 million revamp.
The Hampton Inn & Suites and Holiday Inn under construction side by side at 7777 and 7779 E. I-40 should be complete in late 2015. The two hotels, valued at about $16 million, will add nearly 250 rooms to the market.
A $6.2 million Home2 Suites by Hilton is also under construction on West Amarillo Blvd., adjacent to the Holiday Inn West Medical Centre.
The 115-room Quality Inn Amarillo East at 1515 E. I-40 changed hands in April 2014, and the Potter-Randall Appraisal District database shows the property has an appraised value of $1.5 million.
Average occupancy for all Amarillo properties has increased slightly to 63 percent, and room rates have risen 2.3 percent to $72, said Jan Freitag vice president of STR.
For the first nine months of 2014, 66 percent of Amarillo hotels had occupancies of more than 70 percent, and 30 percent of hotels saw occupancies of more than 80 percent, according to Dan Quandt, Amarillo Convention & Visitor Council Vice President.
At least one quarter of Amarillo hotels had rates of more than $100, and occupancy and rates have continued to rise even as 1,200 rooms have been added to the city’s inventory in the past ten years.
tag: Amarillo data