We will be hosting property tours during the below dates. If you are interested in touring, please contact James Rebullida at jrebullida@hvs.com or +1 (713) 955-5580 to book an appointment. All buyers are required to tour the property prior to offer submission.

• Tuesday, March 7, 2023 to Thursday, March 9, 2023

The call-for-offer deadline is scheduled for Wednesday, March 22, 2023. We will release details about the offer requirements soon. 

Recently Renovated Asset

• Current ownership acquired the asset in September 2019. The property recently underwent an extensive, $2.5-million renovation that reimaged both the interior and exterior of the hotel.

• Given the recent renovation, a minimal change-of-ownership PIP is expected.

Significant Upside for a New Operator

• Based on the historical financial statements, the hotel has suffered from the ongoing renovation and a lack of operational efficiency, registering a negative GOP and NOI flow-through. Looking at comparable operating statements for similar assets, the average GOP was 45.0% to 50.0%. Thus, this is an ideal opportunity for a more aggressive operator to improve operations and increase NOI flow-through.

• Per the December 2022 STR Trend Report, the hotel ranked fifth (out of five) among its competitors in terms of year-to-date occupancy and RevPAR. This presents upside for a more prudent operator to recapture demand from corporate travelers and transition the hotel into becoming a market leader.

• Based upon the HVS pro-forma projections, stabilized rooms revenue in 2024 is anticipated to be in excess of $1.6 million, with an NOI flow-through of $580,000 (rounded).

Excellent Location Among Demand Generators

• The property is proximate to multiple demand generators in the area, including the growing Springwoods Village mixed-use development, Exxon, Hewlett-Packard (HP), Baker Hughes, Halliburton, HCA Houston Healthcare Northwest, CEVA Logistics, Richey Business Park, Oil Center Business Park, and Schlumberger.

• Nearby leisure attractions in the area include Willowbrook Mall, AMF Diamond Lanes, Hurricane Harbor Splashtown, Urban Air Trampoline and Adventure Park, Mercer Arboretum & Botanic Gardens, and the MI3 sports center.

• The property is also located ten miles from George Bush Intercontinental Airport (IAH), which is convenient for both business and leisure travelers.

Discount to Replacement Cost

• To construct a similar limited-service hotel asset with comparable amenities, the estimated all-in investment would be a minimum of $150,000 to $180,000 per key.

• This opportunity presents an investor the ability to acquire the property at a price well below replacement cost at $85,000 per key.

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.