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 fourth out of five competitive hotels in terms of occupancy, registering the third-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 $120,000 to $130,000 per key.

Hilton Franchise

• A new investor can expect a new, 15-year franchise license agreement with Hilton. A new investor will benefit from operating a franchise of one of the world’s leading global hospitality companies. Every Hilton Inc. hotel and resort benefits from the unique system of innovative solutions and advanced technologies, known as the Hilton Performance Advantage. The Hilton Performance Advantage delivers leading-edge support to consistently drive profits and efficiencies and is a powerful resource for owners and operators, unrivaled in the industry. 

Excellent Location Among Strong Corporate and Leisure Demand Generators

• The Property benefits from very good visibility off the frontage road along the Sam Houston Tollway, proximate to numerous dining, retail, and entertainment options in the Chinatown area, which is a positive attribute for both business and transient guests. 
• More than 1,500 businesses reside in the Westchase submarket, and many are associated with the petroleum industry. The Westchase District measures approximately 4.32 square miles, with 16.3 million square feet of office space contained among 118 buildings.

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.