Economy Hotel, Texas

At $3,100,000 this is the most accessible hotel on our books and a confidential sale, so the page is thin by design. What is worth understanding first is that economy hotels are not simply cheaper versions of nicer ones. They are a different job.

• The brand standard is light, the PIP is usually modest, and there is no breakfast operation, no banquet space and very little public area to maintain.
• In exchange, the building works harder, turnover is higher, and the gap between a well run economy property and a badly run one is wider than in any other segment.
• At this price the deal is small enough to be financed easily and small enough that one bad year is felt immediately.

Three things I would check before writing an offer

• The condition of the building, not the condition of the brand. Economy brands ask for less than upscale ones, which is exactly why deferred maintenance accumulates here. Roofs, HVAC units, parking surfaces, plumbing stacks and exterior corridors are where the money has not been spent. Walk the property with a contractor and price the list before you price the hotel. The PIP will be smaller than you fear and the repair schedule larger.
• The room count and what the per key number says. $3,100,000 across 50 keys is $62,000 a key, which is dear for economy. Across 100 it is $31,000, which is normal. Ask early, because this is the single number that tells you whether you are looking at a bargain or at somebody else's retirement plan.
• Who stays there and for how long. Economy properties often drift into weekly and monthly guests without the owner ever deciding to allow it. That changes the labor model, the maintenance load, the insurance position and sometimes the local regulatory exposure. Ask for average length of stay and whether the property takes extended guests, then ask what the local authority thinks about it.

Who it fits

• A hands-on owner-operator, often a first hotel, who will be on the property and can fix things or supervise the person who does.
• A buyer who wants the lowest entry price into Texas hospitality and understands they are buying work.

Who it does not fit

• An absentee investor. Economy is the segment where absence shows up fastest, in reviews and then in rate.
• A buyer who has not budgeted for the repair list on top of the purchase price.

Financing

• This is the easiest hotel size to finance in the United States and sits comfortably inside SBA 7(a). Lenders write this deal routinely.
• The lender will want brand approval, the trailing financials and, on a building of this type, a property condition report.
• Under the rules effective October 1, 2026 the equity injection is 10 percent of total project cost, and on a special-purpose asset like a hotel a 504 lender can look for 15.

Not a commitment to lend. Subject to lender underwriting. Terms vary by borrower.

Next step

The flag, the location, the room count, the operating numbers, the trailing financials and the franchise documents are released after a signed NDA is verified.