La Quinta Inn & Suites by Wyndham Houston Cypress

27130 Highway 290, Cypress, TX 77429, 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 81-key La Quinta Inn & Suites by Wyndham Houston-Cypress, a limited-service asset located in the growing Houston Northwest Cypress submarket. An investor will have the ability to realize the significant upside of acquiring a recently build asset located in the growing suburban Cypress submarket at a price well below replacement cost.

Houston Northwest Freeway

Submarket

Value-add

Investment Type

81

Keys

2016

Year Built

INVESTMENT HIGHLIGHTS

Upside Potential for a Robust Operator

  • Over the last three years, the Hotel has registered an average GOP of around 38%. Based on a selection of similar limited-service operating statements, the hotel should achieve a stabilized GOP margin between 45% and 50%. 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 June 2021 STR Report, the Hotel ranked third out of five competitive hotels in terms of average rate, registering the second-highest 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 the market leader.

Strong Historical Top-Line Performance

  • The Hotel achieved strong top-line revenues prior to the onset of the COVID-19 pandemic, with rooms revenue averaging $1.7 million in 2018 and 2019.

Rebounding Hospitality Industry

  • Given recent developments and wide distribution of the COVID-19 vaccine, hospitality industry reports are anticipating a surge of leisure travelers this year, resulting in one of the strongest summer seasons in terms of room demand and RevPAR performance.

  • Based on the June 2021 STR Report, year-to-date room demand for the submarket increased 38.3% and 53.4% for the Hotel specifically.

  • The Hotel is well positioned to capture leisure demand from the Barry Center of Northwest Houston, Houston Premium Outlets, and Sam Houston Race Park.

Well-Maintained, High-Quality Physical Product with Minor PIP Expected

  • The Property was built as a La Quinta by Wyndham Del Sol prototype and opened in 2016.

  • Ownership has maintained the Property very well, leaving it in excellent physical condition; therefore, a minimal change-of-ownership PIP is expected.

  • Based on current pricing guidance, the Property can be purchased below replacement cost.

La Quinta Inn & Suites by Wyndham Franchise

  • Upon approval from the franchise, a new investor can expect a new 20-year license agreement with Wyndham.

  • Per Wyndham, the La Quinta Del Sol prototype offers a fresh, adaptable prototype that optimizes revenue-producing square footage and strong brand awareness. The brand is a top provider of select-service lodging with excellent accommodations that appeal to both business and leisure travelers in the midscale segment. The brand averages a 107% RevPAR index nationally, and franchisees benefit from the 83 million Wyndham Rewards members to help drive guest stays.

Excellent Location Among Attractive Guest Amenities and Demand Generators

  • The Property is proximate to numerous dining, retail, and entertainment options, which is a positive attribute for both business and transient guests. Available retail and dining options near the Property include Buc-cee’s, Gringo’s Mexican Kitchen, The Toasted Yolk Café, and New York & Chicago Pizza Company.

  • The Property is located 2.5 miles from Houston Premium Outlets, which features a wide collection of brands within 145 stores, including Armani Outlet, Burberry, Coach, Adidas, Nike, Kate Spade New York, and Tory Burch, among others.

  • The multi-purpose Berry Center of Northwest Houston consists of an arena, stadium, theater, conference center, and food-production center. The venue hosts a variety of events annually, including Cypress-Fairbanks Independent School District (CFISD) graduations, banquets, conventions, sporting tournaments, concerts, and family shows. The facility boasts the 11,000-seat Cy-Fair FCU Stadium, 15,333 square feet of exhibit floor space, and a multi-purpose arena designed for a maximum capacity of 9,500 people.

  • Corporate demand generators in the area include Sysco Business Services, Memorial Hermann Cypress Hospital, HCA Houston Healthcare North Cypress, Weiser Air Park, McKesson Medical-Surgical, Wyman-Gordon, RTIC Coolers, Stress Engineering Services, Enerflex Energy Systems, Siemens Energy, Gyrodata Inc., Northwest Lake Business Park, and Aberdeen Business Park.

  • The Property benefits from its location near multiple wedding venues in the area, including Lindsay Lakes, Bridal Oaks Weddings & Events, and Enchanted Cypress, among others.

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 current operator.

PROPERTY OVERVIEW

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Property Details

  • Address: 27130 US Highway 290, Cypress, Texas 77429
  • Submarket/Tract: Houston Northwest Freeway
  • Food & Beverage: Breakfast Dining Area (complimentary breakfast), Market Pantry, and a Full-Service Bar
  • Meeting Space: 312 Square Feet
  • Year Opened: 2016
  • Stories: Four
  • Structure: Wood Frame
  • Foundation: Concrete Slab
  • Elevators: Two
  • Lot Size: 62,726 Square Feet (1.44 acres)
  • Parcel Number: 1301600010009
  • Management: Unencumbered
  • Brand: La Quinta Inn & Suites
  • Franchise: Wyndham Hotels & Resorts, Inc.
  • Ownership Interest: Fee Simple
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Hotel Amenities

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

Guestroom Amenities

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

King Standard28
King Suite16
Queen/Queen Standard37
Total81

MAP

CONTACT US

Investment Sales Contacts

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

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