Motel For Sale Fritch TX Investment Property

Property Overview

The Lone Star Motel, located at 205 E Broadway Street, Fritch, TX 79036, presents an exceptional hospitality investment opportunity in the Texas Panhandle. With 20 units, a storage building, and additional adjacent land, this property offers strong potential for revenue growth, repositioning, and future expansion.

The property benefits from its proximity to Amarillo, one of the fastest-growing economic hubs in the Texas Panhandle, where several major industrial, energy, and technology projects are currently underway or planned. These developments are expected to bring thousands of construction workers, engineers, and long-term employees to the region, increasing demand for affordable lodging and extended-stay accommodations.

Regional Growth & New Employers

Amarillo is experiencing significant investment from both established employers and new technology and manufacturing projects:

• Fermi America – Project Matador AI & Energy Campus: A massive 5,000+ acre development planned near Amarillo that could include up to 18 million square feet of AI data centers powered by a large energy campus. The project could generate 5,000-20,000 jobs and thousands of construction workers over multiple phases.
• Large-Scale Data Center Development: The broader project could eventually deliver 11 gigawatts of power capacity for artificial intelligence infrastructure, positioning Amarillo as a future hub for AI computing and high-tech infrastructure.
• Industrial and Food Manufacturing Expansion: Companies such as Coast Packing Company are investing in new facilities in Amarillo, including a new edible fats and oils processing plant expected to create 30-60 jobs and expand manufacturing activity in the region.
• Technology and Infrastructure Growth: Amarillo is attracting technology companies and data-center related operations with companies hiring for roles in cloud infrastructure, AI systems, and engineering as the region develops new digital infrastructure.

These projects are expected to bring contractors, construction crews, technicians, and long-term workforce housing demand to the area for many years as construction and operations continue.

Key Property Details

• Purchase Price: $399,000
• Property Size: 20 units
• Land Size: 20,909 sq. ft.
• Expansion Opportunity: Includes 2 adjacent vacant lots for additional development
• Additional Improvements: Storage building located on the main parking lot
• Location: High-visibility site on E. Broadway Street in the heart of Fritch, TX, near Amarillo and Lake Meredith

Investment Highlights

• Prime Location: Located on a major thoroughfare with strong visibility and easy access for travelers and workers.
• Workforce Housing Potential: Ideal for lodging construction crews, contractors, and energy or technology workers involved in regional projects.
• Diverse Use Potential: Boutique motel, short-term rentals, contractor housing, or extended-stay workforce lodging.
• Value-Add Opportunity: Renovations, rebranding, and operational improvements could significantly increase occupancy and revenue.
• Expansion Upside: The two additional vacant lots behind the motel offer potential for additional rooms, workforce housing units, or supporting facilities.
• Additional Assets: Storage building included with the property provides additional utility for operations or tenant storage.

Financial Overview

• Potential Rental Income (Year 1): $374,400
• Projected Net Operating Income (Year 1): $56,160
• 5-Year Projected Sales Price: $283,000
• Internal Rate of Return (IRR): 8.9%
• Acquisition CAP Rate: 14.08%
• Projected 5-Year Cash Flow Before Taxes: $63,209

Why Invest?

• Versatile Business Model: Suitable for traditional motel operations or workforce lodging tied to construction and industrial development.
• Strong Cash Flow Potential: Attractive projected cap rate with room for increased revenue through renovations.
• Strategic Location: Positioned near Amarillo’s expanding technology, energy, and manufacturing sectors.
• Future Growth: The region’s large-scale energy and AI infrastructure projects could support lodging demand for many years.

Investment Highlights:

Ask about the two vacant lots behind the motel and the included storage facility located on the main parking lot, both of which add additional development and operational flexibility.