Four Points by Sheraton Houston Greenway Plaza

2828 Southwest Freeway, Houston, TX 77098, 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 216-key Four Points by Sheraton Houston Greenway Plaza, a lender-owned (REO), select-service hotel asset located in one of the highest barriers-to-entry submarkets in Houston. The property is situated on 2.38 acres (103,569 square feet) of land, presenting a rare opportunity for a developer with flexibility to reposition or redevelop the property into a different asset type. Alternatively, a new hotel investor will have the opportunity to realize the significant upside of acquiring and renovating an asset in a highly desirable submarket, substantially below replacement cost.

Houston Galleria/Greenway Plaza

Submarket

Value-add

Investment Type

216

Keys

1975

Year Built

INVESTMENT HIGHLIGHTS

Lender-Owned (REO) Asset

  • Ownership was transferred to the lender in July 2021. 

Desirable Location within the Upper Kirby District

  • The Upper Kirby District is a densely developed and highly sought-after submarket in Houston. Patrons in Upper Kirby are offered easy access to high-profile names in retail, trendy boutiques, fine arts, and some of the city’s most venerated restaurants.

  • The submarket is within about five miles of major economic centers such as Greenway Plaza, Downtown Houston, the Uptown/Galleria area, and the Texas Medical Center.

  • The property benefits from very good visibility off the frontage road along Interstate 69. Based on the 2020 data from the Texas Department of Transportation, this section of Interstate 69 averages over 260,000 vehicles daily.

Potential Redevelopment Opportunity

  • The property is situated on 2.38 acres (103,569 square feet) of land, presenting a rare opportunity for a developer with flexibility to redevelop the site/property into a different asset class.

  • The central location of the Upper Kirby District offers multiple conveniences that complement other asset types, such as surrounding Class-A office space, Class-A multifamily developments, luxury retail, and urban green space (Levy Park).

  • In 2020, Houston ranked fifth in the nation for cities with the highest influx of renters, primarily due to a shortage in housing supply. Despite the pandemic, Houston is currently experiencing a robust migration due to the low cost of living, job growth, and business-friendly environment.

Priced Significantly Below Replacement Cost

  • Upon completion of the brand-mandated change-of-ownership PIP, a new investor can expect a new, long-term license agreement with Marriott.

  • Per Marriott, the Four Points by Sheraton brand caters to well-traveled guests. Timeless classics are woven with modern details to keep guests relaxed and comfortable for both work and play, wherever their travels take them around the globe. Each Four Points by Sheraton hotel offers an authentic taste of local cuisine at its casual restaurant and bar, which provides guests both dine-in and to-go options from breakfast to dinner.

  • A new investor will benefit from operating a franchise of one of the world’s leading global hospitality companies. The award-winning Marriott loyalty program, now known as Marriott Bonvoy, is one of the largest in the hotel industry, offering members access to more than 6,700 hotels across 29 brands. Serving nearly 100 million enrolled members worldwide, it is an effective tool for driving customers to Marriott hotels and creating brand loyalty.

Excellent Location Among Strong Corporate and Leisure Demand Generators

  • The property is near numerous dining, retail, and entertainment options, which is a positive attribute for both business and transient guests. Available dining options nearby include Love Shack Houston, Kiran’s, BB’s Tex-Orleans Café, and Woodshed Smoke House.

  • Just behind the property is Levy Park. The 5.6-acre urban green space was recently redeveloped by the Upper Kirby Redevelopment Authority, including curated, year-round programming; native landscaping; playscapes; water elements; a performance pavilion and an event lawn; a community garden; and a dog park.

  • The adjacent Greenway Plaza business district is one of Houston’s largest employment centers, offering eleven buildings and nearly five million square feet of office space.

Fully Unencumbered of Management and Franchise

  • The property is being offered free and clear of any management and franchise encumbrances, providing an investor with the flexibility to revamp operations and franchise choice.

PROPERTY OVERVIEW

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Property Details​​​​​​​​​​​​​​

  • Address: 2828 Southwest Freeway, Houston, Texas 77098
  • Submarket: Houston Galleria/Greenway Plaza
  • Food & Beverage: Upper Kirby Tap Room (serves breakfast and dinner) & Market Pantry
  • Meeting Space: 2,474 Square Feet
  • Stories: Nine
  • Structure: Steel Frame
  • Foundation: Reinforced Concrete
  • Elevators: Three
  • Building Area: 154,432 Square Feet
  • Lot Size: 103,569 Square Feet (2.38 acres)
  • Parking Spaces: 177 (Surface) 
  • Parcel Number: 0410170050164
  • Management: Unencumbered
  • Brand: Four Points by Sheraton
  • Franchise: Marriott International, Inc.
  • 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
  • Coffeemaker 
  • 50-inch Flat-screen Televisions 
  • Work Desk with Ergonomic Office Chair 
  • Iron and Ironing Board
  • Sofa 
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Guestroom Summary

King154
Double Queen62
Total216

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