The Palms Resort and Cafe on the Beach

South Padre Island, TX (Cameron County)

The Palms Resort and Cafe on the Beach
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Asking Price: $5,900,000

Cash Flow: N/A

Gross Revenue: N/A

EBITDA: N/A

FF&E: N/A

Inventory: N/A

Real Estate: N/A

Established: N/A

The Palms Resort and Cafe on the Beach

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Business Description

The Palms Resort and Cafe on the Beach

The Palms Resort and Cafe On The Beach have a strong track record of steady growth and very profitable operations. 2018 results delivered revenue of nearly $2.3 million with a net profit of $591,900.  The greatest upside potential for both revenue and profit growth lie in the hotel operations. The SPI CVB recently released a report that confirms The Palms Resort has 45% upside potential in occupancy in order to be at par with the average occupancy for South Padre Island. Although currently very profitable, any increase in occupancy in the hotel would generate significant net profit growth because no capital investment would be required.  With better rate management, event marketing, and targeted advertising, hotel revenue could increase to $750,000 per year (to be on par with the 2017 average REVPAR for South Padre Island).

With the recent two-story addition, the Resort now has meeting facilities for 30 persons, an attractive lobby/gift shop, administrative area, maintenance area, and in-house laundry facility with storage for housekeeping supplies. The sale is “turnkey“ with operating supplies, inventory, furniture, fixtures and equipment all included in the purchase price.

The Cafe On The Beach generates 75% of the revenue, and 77% of the net profit for this enterprise. The Palms Resort (hotel) holds the greatest potential for increased revenue and significant increased net profit. For every dollar of increased hotel sales, more than 90% of it will fall to the bottom line. Both entities employ experienced, long-term employees. The enterprise (Cafe and Hotel) is managed by a very seasoned and capable on-site manager. There are no other opportunities of this nature available.

Summary financials are available for qualified investors, or owner/operators. Detailed financials are available upon signing a Confidentiality Agreement. Please do not visit the property without the Broker. Offered at $6,500,000.00 at a 9.1% Cap Rate *ADJ CAP RATE: 10% (Adjusted for $500,000 of furniture, inventory, operating supplies, equipment and fixtures that are included in the purchase price)

Attached Documents


Detailed Information

Location:
South Padre Island, TX
Real Estate:
Owned
Building SF:
21,500
Business Website:
http://palmsresortcafe.com/
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Troy Giles

Business Listed By:
Troy Giles

Troy Giles Realty

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