Holiday Inn Express & Suites Houston NW-Highway 290 Cypress

10520 Huffmeister Road, Houston, TX 77065, US

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THE OFFERING

HVS Brokerage & Advisory, as the sole and exclusive advisory firm to Ownership, is pleased to present the opportunity to acquire the 125-room Holiday Inn Express & Suites Houston NW-Hwy 290 Cypress, which opened in August 2016 and was constructed to include the custom “Formula Blue” design scheme. The hotel is currently owner-operated and is being sold unencumbered of management. The opportunity exists for an investor to expand its portfolio and acquire an underperforming asset below replacement cost.

Houston Northwest Freeway

Submarket

Opportunistic

Investment Type

125

Keys

2016

Year Built

INVESTMENT HIGHLIGHTS

Underperforming Asset with Upside

  • Per the July 2021 STR Report, the hotel registered fourth out of seven competitive hotels in terms of average rate (ADR) among its competitions. Given the strong brand affiliation and high-quality physical product, there is room to increase ADR.
  • Peak rooms revenue was registered in 2017 during the hotel’s first full year of operation when it achieved over $2.9 million in rooms revenue. In 2019, rooms revenue dropped almost 30% to $2.1 million, as the market was absorbing the new supply and corporate demand was relatively limited.
  • Going forward, the hotel is well positioned to recapture demand that was absent because of the COVID-19 pandemic, allowing it to transition to one of the local market leaders.

Rebounding Hospitality Industry

  • Given recent developments and the wide distribution of the COVID-19 vaccines, hospitality industry reports are anticipating a surge of leisure travelers this year, resulting in one of the strongest summer seasons in terms of room-night demand and RevPAR performance.
  • Based on the July 2021 STR Report, year-to-date room demand for the submarket increased 40.0% and 73.2% for the hotel specifically.
  • The hotel has experienced a strong rebound in room revenues over the last three months, with 2021 monthly rooms on pace with 2019. This trend is expected to continue throughout the remainder of the year, with performance on pace to return to pre-pandemic levels by next year.

Well-Maintained, High-Quality Physical Product with Minor PIP Expected

  • Ownership has maintained the property extremely well. Having opened in 2016 with the brand’s custom “Formula Blue” design scheme, the property is in excellent physical condition; thus, a minimal change-of-ownership PIP is expected.
  • Using current pricing guidance, the property can be purchased significantly below replacement cost. The original construction cost was $15 million ($120,000 per key).

Holiday Inn Express & Suites Franchise

  • Upon approval from the franchise, an investor can expect a new, 15-year license agreement with InterContinental Hotels Group (IHG). This presents a new owner with the opportunity to operate a hotel with one of IHG’s most prominent limited-service products. The brand’s success is largely attributed to IHG’s award-winning advertising campaigns and consumer awareness.
  • The award-winning IHG® Rewards Club loyalty program is one of the largest in the hotel industry, offering members more choices to redeem their points than any other hotel loyalty program in the world. Serving over 100 million enrolled members worldwide, IHG Rewards Club is an effective tool for driving customers to IHG hotels and creating brand loyalty.

Excellent Location Among Attractive Guest Amenities and Demand Generators

  • The property is proximate to numerous dining, retail, and entertainment options, which is a positive attribute for both business and transient guests. Available retail and dining options near the property include Starbucks, Goode Company BBQ, Carl’s BBQ, and Jack in the Box.
  • Corporate demand generators in the area include the 175-bed North Cypress Medical Center, Weiser Air Park, McKesson Medical-Surgical, Wyman-Gordon, RTIC Coolers, Stress Engineering Services, Enerflex Energy Systems, Siemens Energy, Gyrodata Inc., Northwest Lake Business Park, and Aberdeen Business Park.
  • Leisure demand generators in the area include the Sterling Country Club, Richard E. Berry Center, Houston Premium Outlets, Cypress Towne Center, and the Sam Houston Race Park.
  • The property benefits from its location near multiple wedding venues in the area, including Lindsay Lakes, Bridal Oaks Weddings & Events, and Enchanted Cypress, among others.

Management Availability

  • The property is being offered free and clear of any management encumbrances, providing an investor with the flexibility to revamp the operational strategies of the current operator.

PROPERTY OVERVIEW

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Property Details​​​​​​​​​​​​​​


  • Address: 10520 Huffmeister Road, Houston, TX 77065
  • Submarket/Tract: Houston Northwest Freeway
  • Number of Rooms: 125
  • Food & Beverage: Complimentary Express Start Breakfast® bar served daily
  • Meeting Space: 1,152 Square Feet
  • Year Opened: 2016
  • Stories: Four
  • Structure: Wood frame
  • Foundation: Concrete Slab
  • Roofing: Flat TPO
  • Elevators: Two
  • Lot Size: 121,968 Square Feet (2.80 acres)
  • Parcel Number: 1274830010003
  • Management: Unencumbered
  • Brand: InterContinental Hotels Group (IHG)
  • Franchise: Holiday Inn Express & Suites
  • Ownership Interest: Fee Simple
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Hotel Amenities

  • Fitness Room
  • Outdoor Swimming Pool
  • Business Center
  • Market Pantry
  • Guest Laundry Facility
  • Daily Housekeeping Service
  • Valet Dry Cleaning Service 
  • Self Parking
  • 24-hour Common Area in the Lobby

Guestroom Amenities

  • Complimentary Wi-Fi and Wired Internet in Rooms
  • Premium Bedding
  • Microwave
  • Pantry Area
  • Mini-Fridge
  • Coffeemaker 
  • 32-inch Flat-screen Televisions 
  • Work Desk with Ergonomic Office Chair 
  • Iron and Ironing Board
  • Sofa 
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Guestroom Summary

King Standard43
Queen/Queen Standard33
King Suite23
Queen/Queen Suite7
King ADA9
Queen/Queen ADA6
Suite ADA4
Total125

MAP

CONTACT US

Investment Sales Contacts

Eric Guerrero

Managing Director, Brokerage & Advisory
HVS
Houston
+1 (713) 955-0012
eguerrero@hvs.com

James Rebullida

Senior Associate, Brokerage & Advisory
HVS
Houston
+1 (713) 955-5580
jrebullida@hvs.com

Fadi Rawashdeh

Senior Financial Analyst, Brokerage & Advisory
HVS
Houston
+1 (713) 955-0013
frawashdeh@hvs.com

Capital Markets Contact

Emil Iskandar

Senior Vice President, Capital Markets
HVS
Los Angeles
+1 (720) 231-3927
eiskandar@hvs.com