5420 Lovington HwyHobbs, NM 88242

Property Details for 5420 Lovington Hwy

Year built

2004

Lot size

1.56 AC

Property size (Sq ft)

68,074 SF

Property type

Hospitality properties

Property subtype

Hotels

Description

This 67-key Hampton Inn & Suites by Hilton in Hobbs, New Mexico, presents a compelling investment opportunity. Located on 1.563 acres at 5420 N Lovington Hwy, 88242, this three-story, 68,074 square foot hotel, built in 2004, offers significant upside potential. The property boasts a strong operational history, with a trailing twelve-month (TTM) July 2024 gross operating profit (GOP) of 29.6% and a net operating income (NOI) of approximately $434,000. Rooms revenue increased 10.4% year-over-year (TTM August 2024), averaging over $1,700,000 annually from 2021-2023. The asking price of $5,200,000 translates to an attractive 2.7x rooms revenue multiplier. A Spark by Hilton conversion is possible, with a provided property improvement plan (PIP) estimating a $1.34 million cost. This conversion is expected to align well with the local market's demand, driven by the strong oil and gas industry in Lea County, the nation's top oil producer. The hotel benefits from diverse demand sources, including major energy companies, educational institutions, hospitals, and local attractions like Zia Park Casino & Racetrack, attracting 2.2 million visitors annually. The property's annual property tax expense averaged a low $15,000 over the last five years. With a potential for improved GOP margins (44-47%), and a purchase price well below replacement cost (estimated $110,000-$130,000 per key to build new), this hotel offers a robust return on investment. The property is offered fee simple.

Location Insight

City

Hobbs

County

Lea

State

New Mexico

Latitude

32.7621

Longitude

-103.182

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