A Unique Investment Opportunity

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Company Overview
Set in the heart of Texas Hill Country on 540 acres of rolling ranch land is a premium Corporate Conference Center that features 47 private guest rooms and 3,000 square feet of meeting space for up to 150 individuals.

The Conference Center was established in 1951 by a Fortune 100 oil services company that utilized the property as a private training facility, worldwide meeting center and hospitality venue for customers. The current owners purchased the property in 2006, and after extensive renovations and additions, reopened it to the public a year later. Since that time, it has been recognized by corporate and non-profit organizations for its outstanding venue, food and service. The property is currently rated #1 in its market on Trip Advisor.

The Conference Center has built a loyal client base including Fortune 100 energy companies, Texas-based financial services and other mid-sized businesses, as well as mission-driven organizations. Not only do these groups return frequently, but the property has doubled the number of its corporate clients since 2010 – all who value the full-service, modern and private setting to host meetings and conferences.

The property itself is located within an easy drive of Texas centers of commerce including San Antonio, Austin and Houston. Its acreage comprises 5 miles of high-game perimeter fencing, two lakes, an all-weather creek and 5 spring fed wells that support its native game in a managed-environment.

The business is led by an experienced team of hospitality and ranch-land professionals, including a General Manager that has managed properties for Marriott, Hilton and Interstate hotels; an executive chef that has recently been featured on television; and a sales manager that has had a dozen years in hotel sales.

The current owner is a privately-held oil services company with operations throughout the Southwest.

Strategic Purchase Considerations
The property is well-suited for use as an exclusive and private venue for meetings or events. Under the current ownership, over $6m in capital improvements have been made, which reinforce the focus on an outstanding guest experience.

The ranch features a Main Lodge with 2 dining areas, 9 Texas-styled cabins with accommodations for 52 guests, a conference facility with the latest audio/visual equipment, a game room and lounge with pool-side terraces, a fitness center as well as buildings for maintenance, housekeeping and storage.

Guests can enjoy a variety of on-site activities, including shooting ranges for skeet, fishing for bass, playing tennis, volleyball or basketball, walking the miles of trails, or relaxing by the pool. The executive chef will often conduct cooking demonstrations or facilitate competitive cook-offs in the professionally equipped kitchen.

The opportunity to “rent-out-the-ranch” as well as its all-inclusive pricing – without the add-ons typical of other conference center competitors – are recognized differentiators. With the industry trend favoring smaller, more focused corporate meetings versus big-budget mass events, the property is well-positioned for continued growth in its category niche.

Investment Highlights
In recent years, the business has steadily improved its overall performance and position in the market –

  • 5-year Revenue CAGR of 50.3%
  • Guest Count increase of 40% since 2009
  • Year-over-year revenue growth of 16% on Top 10 clients in 2013
  • Growing client base with new customers representing 30% of 2013 revenue
  • Average Daily Rate (ADR) increase of 34% since 2009
  • Operating expenses have held constant over the past 5 years, but currently do not off-set fixed costs
  • With modest increases in occupancy, break-even is projected in 2015

Transaction Summary
Offered for sale for only the 2nd time, the conference center and ranch is ideal for investors looking to –

  • Capitalize on a loyal, growing client base to expand a small, but well-positioned business with a unique value proposition
  • Create a regional, vertical or category expansion in the Texas Hill Country – a destination where thousands enjoy Golf Digest rated golf courses, famous wine trails, fine arts, shopping and local attractions, such as rodeos and cowboy-styled entertainment
  • Create a cost effective internal option for off-site meetings, conferences and employee training
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