Comfort Suites Sulfur in Sulfur, Louisiana Auctioned Online
HVS brokerage and advice announces the sale of the 80-room Comfort Suites Sulfur – Lake Charles, located at 2505 Highway 108 South, Lake Charles, Louisiana 70665.
The limited-service hotel property, built in 2009, was sold via an online auction on Ten-X and was purchased by Lake Charles-based LA Asset Reserves LLC from Sulfur-based SAI Hotel Inc. in Louisiana.
At the time of the sale, the hotel had an existing franchise license agreement with Choice Hotels that was set to expire in June 2022; thus, it presented a unique opportunity to reposition and rebrand the hotel.
“This is the second hotel we have sold with HVS and Ten-X in the past year. From inception of marketing to closing the transaction, the process took approximately three months. They did an excellent work exposing the hotel to buyers across the country and showing the benefits of investing in the sulfur market given all the economic growth As we continue to divest our non-core assets, HVS is our go-to broker commented Nilesh (Nick) Patel, chief development officer of Pride Management, Inc.
The property benefits from its location directly on Interstate 10, which connects cities such as Beaumont and Houston to the west, and Lafayette, Baton Rouge and New Orleans to the east, with easy access to three major casinos, West-Cal Arena & Events Center, Pattison Sports Complex, SPAR Water Park and numerous petrochemical plants.
“This deal presented a few challenges, primarily the inability to maintain a long-term Choice Hotels franchise agreement for the Comfort Suites brand and the Sulfur tertiary market. By using Ten-X, we generated strong interest and focused our transaction history on the high cash flow in place and over $80 billion in refinery investment that is happening locally.In addition, the buyer had the option of renaming the hotel to Sleep Inn, which makes still part of the Choice Hotels family. The end buyer was a first-time investor who owned several other businesses locally and had a solid understanding of the market,” said Eric Guerrero, Managing Director and Partner at HVS Brokerage & Advisory.
Eric Guerrero, James Rebullida and Fadi Rawashdeh, members of the HVS Brokerage & Advisory team, participated in this transaction.