Hodges Ward Elliott is pleased to offer the opportunity to acquire the Hampton Inn Texarkana Arkansas (“Property” or “Hotel”) located directly off Interstate 30 in Texarkana, AR. The 89-room Hotel is just steps away from the Arkansas Convention Center - Texarkana and the Holiday Springs Water Park, a short drive from downtown, and is situated in a high-traffic area with proximity to key attractions, businesses, and demand hubs. Texarkana experiences stable, year-round demand, and the Hampton Inn takes full advantage, recording outsized RevPAR penetration levels. The fee-simple offering represents the opportunity to own a premium branded, select service hotel in a growing Sunbelt market, with the opportunity to assume the in-place CMBS debt.
Property Overview
INVESTMENT HIGHLIGHTS
Highly Accessible Location
Strategically situated off I-30, less than four miles from the Texarkana Regional Airport, and conveniently located at the midpoint between Dallas and Little Rock, the Property attracts the full range of travelers seeking retreat from the rigors of travel.
The Texarkana MSA is a major regional hub between Texas, Arkansas, Louisiana, and even Oklahoma, with excellent access that benefits from the junction of Interstate 30 and US highways 59, 67, 71, and 82, as well as strong airport and rail service. Additionally, Interstate 49 is a newly constructed interstate corridor within the MSA that connects Texarkana to Shreveport, Louisiana. The Texarkana Regional Airport (TXK) is commercially serviced exclusively by American Airlines and offers daily flights to Dallas Fort Worth International (DFW), Nashville International (BNA), and Lubbock Smith International (LBB). The Texarkana Union Station is located in downtown Texarkana along the state line, with Amtrak’s Texas Eagle providing daily service east to Chicago and west to San Antonio, continuing on to Los Angeles three days a week, with intermediate points.
Robust Demand with Healthy Business/Leisure Mix
The Hotel benefits from its proximity to a range of both corporate/group and leisure/transient demand generators. Just four miles north of Downtown Texarkana, the Hotel is within walking distance to the Arkansas Convention Center - Texarkana and the Holiday Springs Water Park, and is a short drive to the top leisure attractions such as the Federal Courthouse Building (said to be the most photographed courthouse in the country), the Four States Auto Museum, Spring Lake Park, and many more.
As a major regional business hub, the Texarkana MSA is home to a number of significant employers, well diversified across different industries and providing a stable base to the underlying economy. Cooper Tire & Rubber Company is one of the market’s largest employers, with over 1,700 workers, and is $3 billion publicly traded on the NYSE. Domtar Corporation, also publicly traded and with over $5 billion in revenue, is one of the largest paper companies in the world and has over 1,300 employees in Texarkana. Other examples of major contributors to the Texarkana economy include Truman Arnold (energy/air/aviation), Smith-Blair (water technologies), Sterno Group (food service), and Wholesale Electric Supply (residential & commercial electric solutions).
Four States Fair & Rodeo
Less than three miles from the Property, the Four States Fair is one of the largest such gatherings in the surrounding area, attracting more than 100,000 attendees each year. Dating back to 1940, the Four States Fair & Rodeo grounds provide education and entertainment on an annual basis for the Four States Area. Offering patrons endless entertainment, inclusive of Demolition Derby, an impressive lineup of concerts and countless food options, the Hampton Inn Texarkana directly benefits from record-breaking attendance each year. The Property is one of the closest hotels to the Fairgrounds in the market.
CHRISTUS St. Michael Health Care
The main regional campus for CHRISTUS St. Michael Health Care, approximately a five-minute drive from the Hampton Inn, serves the four-states region of Texas, Arkansas, Oklahoma and Louisiana through this substantial facility. Originally opened in 1916, the present-day facility is a 128-acre campus located just off I-30. The campus includes the main 312-bed acute-care hospital, a 50-bed rehabilitation hospital, an outpatient rehabilitation center, an outpatient imaging center, and a community health and fitness center.
Construction is currently underway on the new CHRISTUS Emergency Center, a brand new, 12,000-SF emergency care center capable of seeing 24,000 people a year. The $17M development is scheduled to finish in August 2024.
Red River Army Depot
Spanning over 15,000 acres, the Red River Army Depot (RRAD) is home to over 8 million SF of government facilities across 1,400 buildings and 16 tenant organizations. A depot workforce of more than 7,000 engage in various work ranging from producing timber to remanufacturing the Mine Resistant Ambush Protected Vehicle. As the largest employer in the region, depot’s massive floor space provides the capability to rebuild a large variety of vehicle systems and components for the US Army, thus making it a critical facility and very stable contributor to the local economy.
TexAmericas Center
One of the largest rural industrial centers in the Americas, TexAmericas Center (TAC) brings together nearly 12,000 acres and over three million SF of office, manufacturing, warehouse, and storage space. In 2020, it was ranked as the #8 industrial park in the country by Business Facilities magazine.
Since 2021, Woodfield, Inc. (an Arkansas-based trucking company) selected the center as its regional HQ, Expal USA (a defense company) invested $1.4M into its facilities at TAC, Maverick Pipe (a New Hampshire pipe manufacturer) purchased a 150,000-SF building in the industrial park with plans to invest $20M, EnviroSafe Demil relocated its HQ to the development (representing a $20-25M investment), and in 2022 alone, 11 new businesses relocated to TexAmericas Center.
The Railyard
Texarkana’s entertainment district, The Railyard, allows visitors to openly carry beverages throughout all public spaces within the defined zone. Filled with restaurants and entertainment venues, guests can easily find live music, dinner, and entertainment throughout the district, located approximately 10 minutes away from the Hampton Inn.
Assumable CMBS Debt
A new buyer would have the opportunity to assume the in-place CMBS debt, pending lender approval. The current loan carries a below-market rate of 5.308% and matures in March 2032.
Optimal Offering - Fee Simple, Non-Union, Unencumbered by Management
The non-union Hotel is offered fee simple and unencumbered of existing management, affording new ownership maximum optionality in the future operation and capitalization of the Hotel.
