Upside Opportunity for a Robust Operator  

• In the last five years, the hotel achieved an annual house profit of 38.6%.  

• Based on a selection of similar limited-service, Hilton-branded, operating statements, the hotel should achieve a stabilized GOP margin between 45.0% and 50.0%.  

Strong Rebounding Performance with Upside 

• Since the onset of the COVID-19 pandemic in 2020, rooms revenue for the hotel has been trending upward. The hotel achieved $1,990,000 (rounded) in rooms revenue as of the trailing-twelve-month (TTM) period ending September 2023, a 21.9% increase compared to the amount in 2022. 

• The Hampton Inn & Suites by Hilton dominates the competitive set, registering a 143.8% RevPAR penetration index in as of the TTM period ending September 2023. 

• Given the rebounding market, new ownership will be able to capture the hotel’s competitive advantage by implementing aggressive sales tactics, increasing room rates, and improving guest satisfaction scores. 

• As of the TTM period ending September 2023, the Hampton Inn & Suites by Hilton achieved a RevPAR level of $66.41.  

Highly Sought-After Hilton Franchise, World-Class Affiliation and Distribution Platform 

• The Hampton by Hilton flag is a proven brand that dominates the upper-midscale segment. Franchisees benefit from Hilton’s global strength, reputation, and unrivaled Hilton Honors™ guest loyalty program. 

• An investor will benefit from operating a franchise of one of the world’s leading global hospitality companies. Every Hilton Inc. hotel and resort benefits from the unique system of innovative solutions and advanced technologies, known as the Hilton Performance Advantage, which delivers leading-edge support to consistently drive profits and efficiencies. It is a powerful resource for owners and operators, unrivaled in the industry. Hilton Honors™ is an award-winning guest loyalty program. Its roughly 115 million members account for more than 50% of all room nights globally for Hilton-branded hotels. 

• The PIP report has been posted to the virtual deal room (VDR).

Excellent Location Among Strong Corporate & Leisure Demand Generators 

• The property is strategically located along Beltway 8 between Interstate 45 and the Hardy Toll Road, proximate to numerous dining, retail, and entertainment options. 

• Corporate demand generators in the area include the Houston Police Academy, Baker Hughes, Crane Worldwide Logistics Headquarters, Halliburton, Insperity, Memorial Hermann, United Airlines, Ritchie Bros. Auctioneers, Technip/FMC, Pinto Business Park, and the Mattress Firm Warehouse, as well as numerous business parks. 

• Leisure demand generators in the area include Houston Aquarium & Animal Adventure, Deerbrook Mall, The Woodlands Mall, W. W. Thorne Stadium, Rockstar Energy Bike Park, Hurricane Harbor Splashtown Waterpark, and Sam Houston Race Park. 

• Available dining options nearby include Denny’s, Waffle House, Taqueria El Dorado, and Pappas Seafood House. 

George Bush Intercontinental Airport (IAH) 

• The property is located only three miles from George Bush Intercontinental Airport (IAH). 

• Last year, nearly 41,000,000 (rounded) passengers traveled through IAH, reflecting a 21.7% increase over the number of passengers in 2021 (33 million). While this is still below the 2019 record level, it indicates a strong sign of recovery. 

• The strong growth of international travel has spurred Houston Airport System to redevelop and update multiple areas of IAH by 2024. Dubbed the IAH Terminal Redevelopment Program (ITRP), the multi-year expansion includes the construction of the new Mickey Leland International Terminal (MILT), which will consolidate current terminals D and E into one centralized hall. The most recent milestone is the demolition of the garage for Terminals D and E, which started in the second quarter of 2021. 

• This past January, United Airlines opened a new, 56,000-square-foot inflight training center (the airline’s largest training facility) at IAH, which is expected to train 4,000 flight attendants in 2023 alone.