Hampton by Hilton Houston Westchase

6440 West Sam Houston Parkway South, Houston, TX 77072, US

Execute Confidentiality Agreement

THE OFFERING

HVS, as the sole and exclusive advisory firm to Ownership, is pleased to present the opportunity to acquire the 82-key Hampton Inn & Suites Houston-Westchase (herein referred to as the “Hampton Inn & Suites” or simply as the “Hotel,” related to its operations, or the “Property,” related to the physical asset), a limited-service asset located in the historically strong Houston Westchase submarket. The owner-operated Hotel is currently underperforming the market; the Property is being sold unencumbered by management. A new investor will have the opportunity to realize the significant upside of acquiring an underperforming hotel and completing the change-of-ownership product improvement plan (PIP). The investor will be able to “turnaround” operations by improving yield-management strategies, revitalizing sales and marketing initiatives, completing the PIP, and recapturing its competitive advantage.

Houston Southwest Freeway

Submarket

Value-add

Investment Type

82

Keys

2004

Year Built

$86.02

Average Daily Rate

55.0%

Occupancy

$47.31

RevPAR

$1,416,053

Room Revenue

15 Years

Expected Franchise Term

Financials as of 2022 Post-PIP 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 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.

PROPERTY OVERVIEW

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Property Details​​​​​​​​​​​​​​

  • Address: 6440 West Sam Houston Parkway South, Houston, TX, 77072
  • Submarket: Westchase District
  • Food & Beverage: Complimentary Full Hot Breakfast (served daily) & Market Pantry
  • Meeting Space: 988 Square Feet
  • Stories: Three
  • Structure: Wood Frame
  • Foundation: Reinforced Concrete
  • Exterior Walls: EIFS & Brick
  • Interior Walls: Sheetrock & Decorative Millwork
  • Roofing: Flat TPO
  • Elevators: One
  • Lot Size: 103,320 Square Feet (2.33 acres)
  • Parcel Number: 1149760000038
  • Management: Unencumbered
  • Brand: Hampton Inn & Suites
  • Franchise: Hilton Inc.
  • Ownership Interest: Fee Simple
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Hotel Amenities

  • Fitness Room
  • Outdoor Swimming Pool
  • Business Center
  • Guest Laundry Facility/Vending Area
  • 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
  • Refrigerator
  • Microwave
  • Coffeemaker 
  • 32-inch Flat-screen Televisions 
  • Work Desk with Ergonomic Office Chair 
  • Iron and Ironing Board
  • Sofa 
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Guestroom Summary

King42
King Suite11
Double Queen21
Double Queen Suite8
Total82

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