Hodges Ward Elliott (“HWE”) is pleased to offer the opportunity to acquire the Marriott San Antonio Northwest Medical Center (“Property” or “Hotel”). Extensively renovated in 2019, the Hotel is strategically positioned in the market’s thriving northwest growth corridor and minutes from the South Texas Medical Center, home to 12 major hospitals, five specialty centers, and the University of Texas Health Science Center at San Antonio. Recognized as the nation’s fastest-growing city in 2023, San Antonio is seeing record-setting population and job increases that will continue to be a boon to the local hospitality market.
Located within a five-mile radius of over 38 million square feet of office and industrial space, the Hotel benefits from proximity to major demand generators. In addition to the South Texas Medical Center, these include San Antonio International Airport (undergoing a $2.5 billion expansion), North Star Mall, Park North Shopping Center, Alamo Quarry Market, Downtown, and some of the city’s most prestigious corporate offices. Notable nearby business hubs such as Lincoln Center, Legacy Oaks Medical Complex, and Cherry Ridge Office Park—situated directly across from the Marriott—house prominent tenants including Brown & Brown Insurance, Nationwide Insurance, ContinuCare, Alamo Hospice, and Singh Law Firm. The fee simple offering presents a unique opportunity to own a recently renovated, institutional-quality, full-service hotel in the nation's fastest-growing city.
| Address | |
| Year Opened | 1985 |
| Renovation Details | ±$19M ($63,000 per key) completed in 2019 |
| Keys | 297 |
| Stories | 11 |
| Site Area | +/- 5.15 Acres |
| Meeting Space | 8,453 SF (10 Event Spaces) |
| F&B |
|
| Amenities |
|
| Interest Conveyed | Fee Simple |
| Management | Unencumbered |
| Labor | Non-Union |
INvestment Highlights
Exceptional Proximity to San Antonio’s
Key Medical and Commercial Hubs
The Marriott is ideally situated just off Interstate 410, one of San Antonio’s busiest highways, and is less than 10 minutes from the South Texas Medical Center, which employs over 86,000 people and generates $12 billion in annual revenue. In addition to strong medical demand from nearby institutions like Methodist Stone Oak Hospital, Brooke Army Medical Center, and CHRISTUS Santa Rosa Alamo Heights Hospital, the Hotel is strategically located near key retail and entertainment destinations, including North Star Mall, Park North Shopping Centers, Ingram Park Mall, Alamo Quarry Market, and Centre Plaza. Its proximity to downtown San Antonio and major educational institutions, such as the University of Texas at San Antonio and the University of the Incarnate Word, further enhances the diversity of its demand base.
Additionally, the Property is within a five-mile radius of over 38 million square feet of industrial and office space and is within a short drive of prominent business hubs like Cherry Ridge Office Park, Legacy Oaks Medical Complex, Lincoln Center, Pyramid Business Park, and Ridgewood Plaza.
EXCELLENT PHYSICAL CONDITION
The previous ownership invested approximately $16.0 million that transformed nearly every aspect of the Property including guest rooms, meeting facilities, lobby, restaurant, fitness center, as well as significant MEP work. Since then, ownership has spent nearly $3.0 million to meticulously maintain the Hotel. As a result, a new owner can expect a more targeted approach to high-impact/high ROI areas.
MINUTES FROM THE SOUTH TEXAS MEDICAL CENTER POWERHOUSE
The Marriott is less than 10 minutes from the South Texas Medical Center (STMC), a rapidly expanding hub for healthcare, education, and research. Spanning over 900 acres—with 200 acres still available for development—STMC is home to 75 medically related institutions, including distinct medical, dental, and nursing schools, a higher education institution, 12 major hospitals, and five specialty centers. The center serves 38 counties and offers over 4,200 patient beds. In 2022, STMC generated nearly $12 billion in revenue, supporting over 86,000 jobs.
More recently, UT Health San Antonio is advancing its $1 billion capital investment plan, highlighted by the new $100 million Center for Brain Health, which is currently 35% complete. This 103,000-square-foot facility will focus on neurodegenerative disease research and treatment and is expected to open in December 2025. The investment also includes the forthcoming Multispecialty and Research Hospital, further expanding the South Texas Medical Center’s role as a premier destination for advanced medical care and research.
San Antonio International Airport (undergoing $2.5 billion expansion)
San Antonio International Airport (SAT), located less than 10 minutes from the Hotel, provides commercial airline service for the entire South Texas region to more than 10 million passengers annually, with more than 260 daily domestic and international departures and arrivals. In 2019, passenger travel increased by over 20% since 2016, nearly double the national average. In 2023, SAT reached a record high, accommodating 10.6 million passengers, a 3.0% increase over the previous record in 2019. More recently, the airport has demonstrated tremendous growth throughout 2024, marked by a 5.0% increase in passenger traffic from September YTD 2023 to September YTD 2024.
Over the next 20 years, passenger traffic at San Antonio International Airport is expected to reach 18 million annually, prompting significant upgrades to meet future demand. City Council’s approved strategic plan includes a $2.5 billion expansion, featuring a new $840 million terminal by 2028 to increase capacity from 24 gates to 40, additional aircraft parking, and a consolidated receiving and distribution facility. Phase 1 of the project, costing between $880 million and $950 million, will also introduce enhanced parking and an intermodal center to streamline transportation options.
Ascending Operating Performance
As of December 2024, YTD RevPAR has increased 8.9% YOY. Historically operating at over 100% RevPAR penetration levels relative to the competitive set, the Property still has ample room to grow and surpass its peers based on its location, premium branding, and product type.
SAN ANTONIO, TX - THE FASTEST GROWING CITY IN THE U.S.
San Antonio, the second-largest city in Texas and the nation's seventh-most populous, boasts a population of 1.5 million residents and was recently crowned the nation’s fastest-growing city in 2023, welcoming over 22,000 new residents. The city is the center of economic activity and commerce in South Central Texas, home to numerous Fortune 1000 headquarters (Valero Energy #29, USAA #103, iHeartMedia #782, Rackspace Technology #898, and Clear Channel Outdoor Holdings #1000), the nation’s 5th-largest private company (HEB Grocery) and several major U.S. military bases. Additionally, Forbes ranks San Antonio among its top-25 growth cities, and Oxford Economics forecasts the San Antonio MSA population growth to rank in the top 20 in the country (175,000+ increase over the next four years).
LOCATED LESS THAN 10 MILES OF BOOMING DOWNTOWN SAN ANTONIO
San Antonio’s Downtown is home to the two most visited attractions in the entire state – the Riverwalk and The Alamo, and visitation to the market continues to increase annually, with an average of 41 million visitors per year. The city’s CBD core is booming, with public and private investments recently completed or approved totaling well over $1 billion. Examples of this notable investment activity include:
Aerial view of San Antonio
Redevelopment of Alamo Plaza
VERY ATTRACTIVE ACQUISITION BASIS (FRACTION OF REPLACEMENT COST)
Attributable to escalating land costs combined with rising construction costs, to develop a comparable full-service asset would cost in excess of $500,000 per key and take over three years to fully build. At the anticipated transaction price, a new owner’s all-in basis will be materially inside of replacement cost.
OPTIMAL OFFERING - FEE SIMPLE, NON-UNION, UNENCUMBERED BY MANAGEMENT
The Property is offered fee simple and free and clear of existing management and financing, affording new ownership maximum optionality in the future operation and capitalization of the Hotel.
DOMINANT BRAND & DISTRIBUTION SYSTEM
Marriott is the flagship brand of Marriott International, the world’s most recognizable and top-performing hospitality brand. Marriott provides a centralized marketing, booking and rewards system, providing the Hotel with access to 200 million Marriott Bonvoy members. Marriott is a top tier brand and arguably one of the most valuable franchise brands in the full-service space in the US. The brand currently has over 317 properties nationwide, along with one additional property totaling 400 rooms in the US pipeline. Marriott’s growth plus its commitment to the Property translates into owner confidence in long-term cash-on-cash returns as well as reversion value.
