KJ Properties sold five Candlewood Suites hotels in Texas and Oklahoma for $36.2 million. Alan Miller, SVP, investments in Marcus & Millichap’s Austin, Texas, office, and Chris Gomes, senior managing director, investments in the firm’s Dallas office, represented the seller and procured the buyer, a Texas-based real estate and investment firm.
“The purchase highlights the buyer’s extended-stay hotel acquisition strategy and places new ownership in position to capitalize on future demand for this type of asset in these markets,” Miller said in a statement.
The 517-room portfolio consisted of three 113-room hotels in San Antonio; Midland, Texas; and Lawton, Okla.; and two 89-room properties in McAlester, Okla., and Bartlesville, Okla.
“Stable occupancy, positive average daily rate and revenue per available room growth are sustaining investor demand for hotels in the Central Midwest,” Gomes said in a statement. “Spanning the past two years ending in June, occupancy in the region hovered just below 58 percent, enabling average daily rate and revenue per available room to reach record highs of $90.62 and $52.76, respectively.”