AUSTIN, TX- Steady population growth in Austin influenced Houston-based Moody National REIT 1 Inc. to acquire a Hampton Inn in Austin for $15.4 million with a 9.3% in-place cap rate. The REIT has plans for a $1 million of capital improvements on the property in line with Hilton's Forever Young Initiative that is being rolled out across the Hampton brand.

The 123-room Hampton Inn Austin/Airport Area South is located six miles from the Austin's main airport. According to an 8-K disclosing the transaction, Moody National cited population as the driver for the Austin purchase. In 2012 the Census Bureau showed the Austin-Round Rock-San Marcos region grew faster than any other large U.S. metropolitan area, reports Moody National.

“Austin is a very robust market and it fits nicely into our portfolio of premier-branded, upscale hotels by Hilton, Hyatt and Marriott,” said Moody National CEO Brett Moody. “The property was well-priced and will be well positioned after the renovations.”

Moody National plans to add corporate accounts to the hotel and anticipates rate increases due to the upgrades. The Forever Young Initiative requires existing hotels to upgrade guestrooms and baths with a fresh, modern design esthetic. Features of the renovations will include moveable desks and ottomans, uniquely positioned power outlets and upgraded space-efficiency.

“Comparatively to the other asset classes the hotel sector has had sizeable rental rate growth. We've seen RevPar growth in the 6% - 8% range for the last few years and we expect it to remain in that range for the next two years,” adds Moody.