Holiday Inn Express & Suites Brookshire Katy Freeway

34103 Katy Freeway, Brookshire, TX 77423, US

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THE OFFERING

HVS, as the sole and exclusive advisory firm to Ownership, is pleased to present the opportunity to acquire the underperforming, 75-key Holiday Inn Express & Suites Brookshire – Katy Freeway (herein referred to as the “Holiday Inn Express & Suites” or simply as the “Hotel,” related to its operations, or the “Property,” related to the physical asset), a recently constructed, limited-service asset located in the historically strong Katy Freeway submarket. The Hotel is currently absentee owned and operated by a third-party management company but is being sold unencumbered by management. A new investor will have the opportunity to realize the significant upside of acquiring a recently constructed, absentee owned, underperforming asset at significantly below replacement cost. The investor will be able to “turnaround” operations by improving yield-management strategies, revitalizing sales and marketing initiatives, and recapturing its competitive advantage.

Katy Freeway West

Submarket

Value-add

Investment Type

75

Keys

2017

Year Built

$79.53

Average Daily Rate

60.0%

Occupancy

$47.72

RevPAR

$1,306,352

Room Revenue

17 Years

Expected Franchise Term

Financials as of 2022 Projection

INVESTMENT HIGHLIGHTS

Upside Potential for a Robust Operator

  • Based on the year-end 2019 profit-and-loss (P&L) statement, the Hotel achieved a house profit of 41.3%, with an NOI flow-through of 21.9%, including 3% management fees and 4% FF&E reserves. Great upside exists for a more “hands-on” operator to restructure the Hotel’s operations, establish yield-management strategies, and initiate cost-containment initiatives to maximize RevPAR penetration and NOI flow-through.
  • Per the July 2020 STR Report, the Hotel ranked fifth out of six competitive hotels in terms of occupancy, registering the second-lowest overall RevPAR among its competitors. A more prudent and hands-on operator should be able to recapture demand from corporate travelers and transition the hotel into becoming a market leader.

Discount to Replacement Cost

  • This opportunity presents an investor the ability to acquire the Property at a price well below replacement cost. To construct a similar limited-service asset with comparable amenities, the estimated all-in investment would be a minimum of $110,000 to $130,000 per key.

IHG Franchise

  • Upon acquisition and approval, an investor can expect a new, 20-year license agreement with IHG. The Holiday Inn Express brand is IHG’s largest and fastest-growing hotel brand in the world. The brand offers delivers a consistently fresh and innovative guest experience, meeting guests’ needs and driving value for owners.

Excellent Location Along Interstate 10 and Demand Generators

  • The Property benefits from very good visibility off the frontage road along Interstate 10, proximate to numerous dining, retail, and entertainment options, which is a positive attribute for both business and transient guests.
  • In November 2019, Stream Realty Partners purchased 300 acres along Interstate 10 in Brookshire with plans to develop the Empire West business park. Stream Realty Partners will complete the development in phases and intends to attract e-commerce and consumer goods distributors.

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 Hotel.

PROPERTY OVERVIEW

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Property Details​​​​​​​​​​​​​​

  • Address: 34103 Katy Freeway, Brookshire, Texas 77423
  • Submarket: Katy Freeway West, TX
  • Food & Beverage: Complimentary Express Start Breakfast® (served daily) & Market Pantry
  • Meeting Space: 316 Square Feet
  • Stories: Four
  • Structure: Wood Frame
  • Foundation: Reinforced Concrete
  • Exterior Walls: EIFS & Brick
  • Interior Walls: Sheetrock & Decorative Millwork
  • Roofing: Flat TPO
  • Elevators: One
  • Lot Size: 65,470 Square Feet (1.50 acres)
  • Parcel Number: 237664
  • Management: Unencumbered
  • Brand: Holiday Inn Express & Suites
  • Franchise: InterContinental Hotels Group (IHG)
  • Ownership Interest: Fee Simple
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Hotel Amenities

  • Fitness Room
  • Outdoor Swimming Pool
  • Lobby Workstation
  • Guest Laundry Facility
  • Daily Housekeeping Service
  • Self Parking
  • 24-hour Common Area in the Lobby

Guestroom Amenities

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

King33
King (ADA)3
King Suite7
King Suite (ADA)2
Double Queen20
Double Queen (ADA)3
Two-Bed Suite7
Total​​​​​​​75

MAP

CONTACT US

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

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