CBRE Hotels is inviting offers to acquire the fee-simple interest in the La Quinta Inns & Suites in Alexandria, Louisiana, an underperforming hotel with significant upside potential.

CBRE Hotels, a division of the commercial real estate services and investment firm CBRE Group, is inviting offers to acquire the fee-simple interest in the La Quinta Inns & Suites in Alexandria, Louisiana. The hotel, which has recently undergone renovations, is ideally located near the Alexandria International Airport, several renowned academic institutions, and various corporate offices. The property’s strategic location enables it to cater to a diverse clientele from corporate and leisure segments.

The four-story hotel, boasting 117 rooms, is in excellent condition, which would require minimal capital improvements for the new owners. However, the property has been underperforming compared to its competitive set, with a RevPAR (revenue per available room) index of 77.9 as of the end of 2023. This underperformance is largely due to the current owner’s out-of-state location and the absence of hands-on hotel management, presenting a significant opportunity for the new ownership group to implement proactive revenue management strategies and drive a substantial increase in RevPAR and market penetration.

Despite its current underperformance, the La Quinta Inns & Suites in Alexandria demonstrated strong in-place cash flow in 2023, posting a net operating income (NOI) of approximately $893 thousand. This robust cash flow and the potential for increased market share make the property an attractive acquisition opportunity for potential investors.

The hotel’s proximity to significant demand generators, such as UTLX Manufacturing, Northwestern State University, Oceans Behavioral Hospital, CHRISTUS Central Louisiana Surgical Hospital, and Central Louisiana Regional Port, further enhances its investment appeal. This strategic location positions the La Quinta to capture business from a diverse population, including corporate visitors, academic personnel, healthcare professionals, and leisure travelers.

Situated at the heart of Louisiana, Alexandria serves as a thriving economic hub for the region. Known for its significant contributions to the medical, educational, and retail sectors, the city is a major transportation hub, facilitating air, water, rail, and highway travel. The Heavy Industrial Mega Site at the England Industrial Airpark attracts large manufacturers looking for startup or relocation opportunities, further solidifying Alexandria’s economic standing.

In conclusion, the La Quinta Inns & Suites in Alexandria, Louisiana, presents a unique investment opportunity. The property’s underperformance, strong cash flow, and strategic location near key demand generators present considerable upside potential for new ownership to drive revenue growth and improve the hotel’s market penetration.

Inquire at CBRE.