Comfort Suites Houston Chinatown

7707 West Sam Houston Parkway South, Houston, TX 77072, 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 74-key Comfort Suites Houston Chinatown, a limited-service hotel asset located near the historically strong Houston Westchase submarket. A new investor will have the opportunity to realize the significant upside of acquiring a well-maintained, strong-performing hotel asset with operational upside at a price below replacement cost.

PROPERTY HIGHLIGHTS

Excellent Location in Houston's Chinatown

  • The property benefits from very good visibility off the frontage road along the Sam Houston Tollway, near numerous dining, retail, and entertainment options in the Chinatown area, which is a positive attribute for both business and transient guests.

  • The Comfort Suites is the closest midscale hotel to Chinatown and has been able to capitalize on the strong leisure visitation to the area.

  • Earlier this year, a local developer broke ground on the Asian City Center—a new, 4.5-acre mixed-use commercial development along Beltway 8 and Bellaire Boulevard about one mile from the property. The development will include luxury high-rise residential units, retail outlets, and office space.

Well-Maintained, High-Quality Physical Product

  • The Hotel opened in 2013, and ownership has maintained the physical asset well; it is currently ranked 7 out of 468 hotels in the Houston area on TripAdvisor.

Strong Historical Top-Line Performance and Market Rebound

  • Rooms revenue reached $1,600,000 (rounded) in 2021, reflecting a 45.0% increase compared to 2019.

  • Despite the slow start that some other Houston hotels are facing this year, the Hotel achieved a 27.4% increase in rooms revenue through the first two months of 2022, compared to the same period last year.
  • The hotel dominates the competitive set, as evidenced by the 147.6% RevPAR penetration index as of February 2022 for the trailing-twelve-month period.

Upside Potential for a Robust Owner/Operator

  • Per the year-end 2021 profit-and-loss (P&L) statement, the Hotel achieved a house profit (GOP) of 36.4%, with an NOI flow-through of 24.9%, including 4.0% FF&E reserves.We see multiple opportunities for improvement that could lead to a collective decrease in rooms expense, specifically in the payroll department.

  • The hotel is operated with a full staff, and there is no onsite sales presence, making this an ideal investment for an aggressive owner/operator.

Houston Chinatown

Submarket

Value-add

Investment Type

74

Keys

2013

Year Built

$83.00

Average Daily Rate

72.0%

Occupancy

$63.00

RevPAR

148.0%

RevPAR Penetration Index

$1,619,558

Room Revenue

Financials as of 2021 YE

MAP

CONTACT US

Investment Sales Contacts

Eric Guerrero

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

James Rebullida

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

Fadi Rawashdeh

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

Kyle Peterek

Senior Associate, Brokerage & Advisory
HVS
Seattle
+1 (206) 259-7150
kpeterek@hvs.com