Ideal Opportunity for an Owner/Operator

• It is rare to find a highly desirable Palace Inn-branded hotel for sale in Houston.

• The property contains the following features:

  • Three apartments with two bedrooms and a fully equipped kitchen as part of the inventory

  • One apartment with one bedroom and a fully equipped kitchen as part of the inventory

  • An owner/manager's apartment with one master bedroom and two other bedrooms, along with a living room that has a direct connection to the registration area and front desk

  • Tile flooring in all guestrooms

• The 53-key count is an ideal guestroom size for an owner/operator.

• There is an opportunity to add nine or ten guestrooms to the property, bringing the total key count to over 60.

Opportunity to Increase Performance

• The hotel averaged $412,000 in rooms revenue over the last four years, with an average RevPAR of $21, whereas the competitive set’s RevPAR average has been closer to $38 (rounded); thus, significant upside exists.

• Per the trailing-twelve-month (TTM) September 2022 data, the following competitors achieved higher RevPAR amounts:

  • Crystal Inn, 39 keys: $46.31 RevPAR

  • Luxury Inn, 22 keys: $48.85 RevPAR

  • Haven Inn & Suites, 42 keys: $48.23 RevPAR

• Based upon the HVS pro-forma projections, stabilized rooms revenue in 2025/26 is anticipated to be in excess of $700,000 ($36 RevPAR), with an NOI flow-through of $310,000 (rounded).

Excellent Location near Downtown Houston

• The property benefits from excellent visibility and accessibility off the frontage road along Interstate 45, less than ten minutes (6.9 miles) north of Downtown Houston.

• Based on the 2021 data from the Texas Department of Transportation (TxDOT), this section of Interstate 45 averages 225,000 vehicles daily.

• Local establishments include a Walmart Supercenter, the Northline Transit Center/HCC light-rail station, Northline Commons (outdoor shopping mall), The Houston Farmers Market, and several fast-food options.

Fully Unencumbered of Franchise

• The property is being offered free and clear of any franchise encumbrances, providing an investor with the flexibility to revamp operations and the ability to rebrand it, if desired.

• The Palace Inn franchise may be retained with the completion of a change-of-ownership PIP. The seller has ordered the PIP; it will be uploaded to the virtual deal room (VDR) upon receipt.