In Brief: HVS Brokerage & Advisory has listed the 120-room Red Roof Inn Corpus Christi South for sale, presenting an owner-operator investment opportunity centered on rate growth, rising occupancy and demand from nearby medical, education, military and industrial employers.
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Red Roof Inn Corpus Christi South – Image Credit HVS
HVS Brokerage & Advisory has been retained as the exclusive advisory firm for the sale of the Red Roof Inn Corpus Christi South, a 120-key limited-service hotel in Corpus Christi, Texas.
Built in 1990, the property is being marketed as a value-add investment. Its financial information shows a 2025 average daily rate of $53, occupancy of 67% and revenue per available room, or RevPAR, of $36. Room revenue and gross operating profit figures are based on the 2025 year-end profit and loss statement, while average daily rate, occupancy and RevPAR reflect the trailing 12 months through July 2026.
The hotel may be acquired for roughly $46,667 per key, which HVS describes as below estimated replacement cost. The brokerage firm notes that limited coastal site availability, construction costs and windstorm-related building requirements have restricted new hotel development in the Corpus Christi and Padre Island areas. According to HVS, no new economy-oriented rooms are being added to the local supply.
Revenue and Occupancy Trends
The hotel generated average annual room revenue of $1.63 million between 2021 and 2025, according to HVS. Room revenue totaled approximately $1.49 million in 2025 and has exceeded $1.45 million in each of the past five years.
Occupancy has increased for three consecutive years. The hotel reported occupancy of 59.1% in 2023, 61.4% in 2024 and 64.8% in 2025. Occupancy reached 71% year to date through July 2026.
The July 2026 STR Trend Report ranked the hotel second in occupancy among five competitive properties, according to HVS. Its occupancy penetration index was 110.5%, while its RevPAR penetration index was 106.3% for the year-to-date period. The hotel has held the second-place occupancy ranking in 15 of the previous 18 months.
Potential for Rate Improvement
HVS identifies pricing as a potential area of improvement for new ownership. While the property has outperformed its competitive market in occupancy, its average daily rate has remained below that of the broader Corpus Christi economy-chain segment.
For the trailing 12 months ending in July 2026, the hotel recorded an average daily rate of $53.04. That was 13.1% below the wider economy-chain segment’s average of $61.02. The hotel’s ADR penetration was 99.4%, down from 103.7% at the end of 2025.
HVS estimates that maintaining occupancy at 67.3% while increasing pricing to the segment average could produce approximately $1.72 million in room revenue, an increase of about $225,000. The hotel recorded an ADR of $65.61 in 2023, indicating that it has previously achieved higher rate levels.
Owner-Operator Structure
The property includes a two-bedroom, two-bathroom owner’s apartment created from two guestrooms. The rooms are currently excluded from the hotel’s available inventory but could be returned to guestroom use at minimal cost because no structural modifications were made, according to HVS.
The hotel has been underwritten as a 120-key asset in its historical operating statements and pro forma analysis. It is also being offered without a management agreement, allowing a buyer to operate it directly or select a new management structure.
HVS positions the property as suitable for a hands-on owner-operator. Direct oversight could allow new ownership to focus on rate management, operating costs and revenue generation while retaining the option to occupy the on-site apartment.
Demand Generators Near the Property
The hotel is located on Corpus Christi’s south side near several institutional and commercial demand sources. Corpus Christi Medical Center Bay Area, a 152-bed Level II trauma center, is situated across South Padre Island Drive from the property. The medical center is expected to generate demand from patients’ families, clinicians and other medical travelers.
Texas A&M University-Corpus Christi, which enrolls more than 11,000 students, is within two miles of the hotel. Del Mar College’s Windward Campus is just over one mile away, while Naval Air Station Corpus Christi is approximately four miles east.
The property is also about eight miles from the beaches of Padre Island and Mustang Island. La Palmera, a regional shopping center, is roughly two miles from the hotel.
Corpus Christi Market Development
HVS cites continued infrastructure and industrial development in Corpus Christi as a source of support for hotel demand. In June 2026, the Port of Corpus Christi entered exclusive negotiations with DP World to develop and operate a container terminal. The proposed project would expand the port’s containerized cargo capacity and could broaden the region’s employment base.
The Corpus Christi Ship Channel Improvement Project was completed in June 2025, allowing larger vessels to access the port. The region’s refining and petrochemical operations—including facilities associated with Valero, CITGO, Flint Hills Resources and Occidental Petroleum—continue to generate business-travel demand throughout the Coastal Bend.
Inquire at HVS.