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.
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