Small hotel for sale in Texas: a renovated 20-unit you can actually finance
Direct answer: there is a small hotel for sale in Texas right now. Hotel Dilley Grand is 19 rooms plus an owner’s residence (20 units) at 110 S Main Street in Dilley, on Interstate 35, about an hour from San Antonio. The published ask is $650,000 against a trailing-twelve-month NOI of $69,333, a 10.7% cap rate. An SBA 7(a) profile discussed with lenders is roughly 20% down, about $130,000 at the ask, subject to underwriting and appraisal.
What “small hotel for sale in Texas” usually gets you
Most sub-$1 million Texas hotel listings fail a first-time buyer in one of two ways: the building still needs a six-figure renovation, or no lender will finance an independent. The useful filter is not room count. It is whether the income is verifiable, the use matches the certificate of occupancy, the renovation is already done, and a bank has at least looked at the file. Those four tests are spelled out in the Texas motel for sale guide.
Hotel Dilley Grand is offered as a live example that currently clears them. It was purchased abandoned in 2024 for about $275,000, renovated for about $135,000 in roughly 30 days, and reopened in July 2024. Trailing-twelve-month revenue is $158,968. Trailing-twelve-month NOI is $69,333, up 70% versus the prior twelve months. $34,750 of that T12 revenue is monthly-lease income. All figures are owner-provided from the P&L. Buyers should verify independently.
The property, in one pass
- 19 guest rooms plus an owner’s residence, 20 units total
- 110 S Main Street, Dilley, Texas, on I-35, about one hour from San Antonio
- Asking price $650,000 (10.7% cap on T12 NOI)
- Dual-use certificate of occupancy: nightly hotel stays and monthly leases in the same building
- Cloudbeds PMS, smart locks, property-wide wifi, documented staff processes
- On-site manager model; public 3D tour of every room
The owner is selling to redeploy into multifamily. The listing states there is no hidden distress. Offers are handled through the owner’s listing arrangements; the owner holds a Texas real estate license.
Why a first-hotel buyer can get a lender to look at this one
Independent hotels die in underwriting more often than they die on price. The SBA 7(a) hotel loan path exists for owner-operators, commonly around 15–20% down, but only when verified NOI covers the debt. On this ask, 20% down is about $130,000. At roughly prime + 2 on a 25-year amortization, the published profile pencils to a DSCR of about 1.35 against the $69,333 T12 NOI. A conventional regional-bank path at 60–65% LTV has also been scoped, with a published DSCR around 1.6+.
Those are lender-quoted paths, subject to full underwriting and appraisal. They are not a loan offer, a pre-approval, or a guarantee. The point is narrower: a first-time buyer is not starting from a property no bank will touch. The math and the interactive DSCR calculator live on the listing page.
SBA 7(a) requires that the buyer operate the business. The owner’s residence makes living on site practical. An on-site manager already runs day-to-day operations on documented processes, so the file is not “you must stand the desk yourself from day one.”
Hotel income and monthly-lease income, legally
The dual-use certificate of occupancy is the optionality most small-hotel listings do not have. Nightly rooms and monthly leases are both permitted, so workforce-housing income is not a gray-area use you inherit. $34,750 of T12 revenue is already monthly-lease income. The hotel vs. multifamily conversion page covers why that matters and why a full conversion is usually the wrong first move.
The live listing: Hotel Dilley Grand, $650,000 ask, $69,333 T12 NOI, 19 rooms plus an owner’s residence on I-35. Request the financial package for the P&L behind those figures, the renovation documentation, and the financing one-pager.
All figures owner-provided from the P&L; buyers should verify independently. Financing descriptions reflect lender conversations and are subject to full underwriting and appraisal.
Frequently asked questions
Is there a small hotel for sale in Texas right now?
Yes. Hotel Dilley Grand, a renovated 20-unit hotel (19 rooms plus an owner’s residence) at 110 S Main Street in Dilley, Texas, on Interstate 35, is offered at $650,000. Trailing-twelve-month NOI is $69,333, a 10.7% cap rate at the ask. All figures are owner-provided from the P&L and should be independently verified.
How much is a small hotel in Texas?
Small independent Texas hotels and motels commonly trade well under $1 million. Hotel Dilley Grand asks $650,000 against a trailing-twelve-month NOI of $69,333. Price against verified income matters more than room count.
Can a first-time buyer finance a small Texas hotel?
Often yes, when the property’s verified NOI carries the debt. An SBA 7(a) profile discussed with lenders for Hotel Dilley Grand is roughly 20% down, about $130,000 at the $650,000 ask, subject to underwriting and appraisal. A conventional path at 60–65% LTV has also been scoped. Neither is a loan offer or pre-approval.
Does this small hotel include a place to live on site?
Yes. The offering is 19 guest rooms plus an owner’s residence, 20 units total. An on-site manager currently runs day-to-day operations. SBA 7(a) requires that the buyer operate the business; the residence makes owner-operation practical.
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