Comfort Suites Houston Northwest Vintage Park

21222 Tomball Parkway, Houston, TX 77070, 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 64-key Comfort Suites Houston NW - Vintage Park (herein referred to as the “Comfort 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 Northwest Houston submarket. A new investor will have the opportunity to realize the significant upside of acquiring a recently renovated, underperforming, absentee owned asset sigifnicantly 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.

Houston Northwest Freeway

Submarket

Value-add

Investment Type

$3,400,000

Pricing Guidance

64

Keys

2000

Year Built

$70.00

Average Daily Rate

32.0%

Occupancy

$22.00

RevPAR

68.0%

RevPAR Penetration Index

$53,125

Price Per Key

Financials as of TTM as of Aug 2020

INVESTMENT HIGHLIGHTS

Absentee Owned With Management Upside

  • Current ownership is operating the Hotel from out of state; thus, great upside exists for a more hands-on owner/operator to restructure the hotel’s operations, establish yield-management strategies, and initiate cost-containment initiatives.
  • Per the August 2020 STR Trend Report, the Hotel ranked last (out of five) among its competitors for YTD RevPAR. Additionally, its YTD occupancy penetration index of 69.7% indicates that the Hotel is significantly underperforming, despite having the lowest room count within its competitive set; thus, an opportunity exists for a new owner/operator to strengthen the hotel’s performance.

Ideal Opprtunity for Owner Operator

  • The 64-key count will allow an owner/operator to implement their own management strategies by reducing costs to maximize NOI flow-through
  • The Executive Suite includes a kitchen and separate guestroom that can be used as an owner/operator's apartment.

Discount to Replacement Cost

  • This opportunity presents an investor the ability to acquire the Property at a price well below replacement cost. Given the recent renovations, a minimal change-of-ownership PIP is expected. To construct a similar limited-service asset with comparable amenities, the estimated all-in investment would be a minimum of $90,000 to $110,000 per key.

Choice Hotels International Franchise

  • Upon brand approval, a new investor can expect a new, 20-year franchise license agreement with Choice Hotels International. 
  • The Comfort brand recently received a $2.5-billion strategic investment directed toward complete redesign, marketing, and brand awareness. Comfort is Choice International’s most prominent brand, with exposure to over 36 million Choice Privileges® Rewards members.

Excellent Location Along Texas Highway 249 (Tomball Parkway) Among Strong Corporate and Leisure Demand Generators

  • The Property benefits from very good visibility off the frontage road along Texas Highway 249 (Tomball Parkway). Based on the 2019 data from the Texas Department of Transportation, this section of Texas Highway 249 averages nearly 140,000 vehicles daily.
  • Corporate demand generators in the area include Filtration Technology Corporation, GE Oil & Gas, GENERON, Essentra Pipe Protection Technologies, FMC Technologies, Amazon Flex Warehouse, and Rubicon Oilfield International, as well as Willowbrook Methodist Hospital and St. Luke’s Health – The Vintage Hospital.
  • Leisure demand generators in the area include Willowbrook Mall, Willowbrook Shopping Plaza, AMC Willowbrook 24, iT’Z (indoor activities center), Sam Houston Race Park, and Heron Lakes Golf Course.

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: 21222 Tomball Parkway, Houston, Texas 77070
  • Submarket: Houston Northwest Freeway (Willowbrook)
  • Food & Beverage: Breakfast & Market Pantry
  • Meeting Space: 30 Persons
  • Stories: Three
  • Structure: Wood Frame
  • Foundation: Concrete Slab
  • Exterior Walls: EIFS
  • Interior Walls: Sheetrock & Decorative Millwork
  • Roofing: Flat with Rubber Membrane Covering
  • Elevators: One Guest
  • Lot Size: 64,000 Square Feet (1.47 acres)
  • Parcel Number: 1207660010001
  • Management: Unencumbered
  • Brand: Comfort Suites
  • Franchise: Choice International Hotels
  • Ownership Interest: Fee Simple
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Hotel Amenities

  • Fitness Room
  • Business Center
  • Guest Laundry Facility
  • Daily Housekeeping Service
  • Self Parking
  • 24-hour Common Area in the Lobby

Guestroom Amenities

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

Queen Queen25
King31
King Suite (Jacuzzi)5
King Executive Suite3
Total64

MAP

CONTACT US

James Rebullida

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

Eric Guerrero

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

Fadi Rawashdeh

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