La Quinta Inn & Suites Rosenberg

28332 Southwest Freeway , Rosenberg, TX 77471, US

Execute Confidentiality Agreement

THE OFFERING

HVS Brokerage & Advisory, as the sole and exclusive advisory firm to ownership, is pleased to present the opportunity to acquire the 56-key La Quinta Inn & Suites by Wyndham Houston Rosenberg, a limited-service hotel asset in Rosenberg, Texas. A more “hands on” investor will have the ability to realize the significant upside of owning a recently renovated property with further operating potential for a price well below replacement cost.

Houston Southwest Freeway

Submarket

Value-add

Investment Type

$4,400,000

Pricing Guidance

56

Keys

2007

Year Built

$82.69

Average Daily Rate

67.7%

Occupancy

$54.71

RevPAR

$1,118,361

Room Revenue

$78,571

Price Per Key

Financials as of Year-End 2022

PROPERTY HIGHLIGHTS

Ideal Opportunity for an Experienced Owner/Operator to Improve Performance and NOI Flow-Through

  • The 56-key count is considered an ideal size for an experienced owner/operator.

  • Since 2019, the hotel has achieved an average gross operating profit (GOP) of 33.4%. Based on a selection of similar limited-service hotel operating statements, the hotel should achieve a stabilized GOP margin between 45.0% and 50.0%.

  • Per the September 2023 STR Report, the hotel ranked third and fourth out of six competitive hotels in terms of occupancy and average daily rate (ADR), respectively, which shows significant room for improvement.

  • Given the recent renovation, location, and brand affiliation, great upside exists for a more “hands on” operator to restructure the hotel’s operations to maximize RevPAR penetration and NOI flow-through.

Strong Market Fundamentals and Rebounding Performance

  • Per the September 2023 STR Report, year-to-date room-night demand for the submarket increased by 7.2%.

  • Before the onset of the COVID-19 pandemic, the hotel achieved a revenue exceeding $1.1 million, showcasing significant potential for new investors. Impressively, the hotel successfully rebounded to this pre-COVID level in 2021, 2022, and year-to-date in the current year.

  • Based on HVS pro-forma projections, stabilized rooms revenue in 2026/27 is anticipated to exceed $1,200,000 ($59.00 RevPAR), with an NOI flow-through of $436,000 (rounded).

Priced Significantly Below Replacement Cost

  • This opportunity presents an investor with the ability to acquire the property at a price well below replacement cost.

  • Given the recent renovation, a new buyer can expect a minimal change-of-ownership property improvement plan (PIP).

  • To construct a similar limited-service asset with comparable amenities, the estimated all-in investment would be a minimum of $125,000 per key.

La Quinta Inn & Suites by Wyndham Franchise

  • Upon approval from the franchise, an investor can expect a new, long-term license agreement with Wyndham Hotels & Resorts.

  • La Quinta by Wyndham is a well-established, limited-service, upper-midscale hotel brand that appeals to both business and leisure travelers. The brand’s RevPAR index averages over 100.0% nationally, and franchisees benefit from the 100 million Wyndham Rewards members to help drive guest stays.

Excellent I-69 Location in the Expanding Fort Bend County Market ​​​​​​​

  • The property benefits from excellent visibility and accessibility given its location along the I-69 frontage road, near State Highway 36; I-69 is a major thoroughfare that provides easy access to Sugar Land and Houston to the northeast.

  • The property is favorably located near many dining, retail, and entertainment options, which is a positive attribute for both business and transient guests.

  • The 230,000-square-foot Fort Bend County Epicenter, which recently opened in 2023, includes a 170,000-square-foot arena along with pre-function space, a 17,000-square-foot multipurpose facility with 10,000-seat capacity, and a 38,000-square-foot pavilion. The facility is primarily set up to accommodate sport tournaments; however, it should generate additional leisure and group demand for the market when it hosts commencement ceremonies, trade shows, and live entertainment.

  • Frito Lay has invested $220 million in the expansion of its warehouse in Rosenberg, which is expected to add 160 jobs on completion by year-end 2023.

  • Accredo Packaging Inc. is undergoing a $9.5-million expansion, which is anticipated to bring 30 new jobs to the county, adding to the existing 525 jobs.

  • Bluebonnet Nutrition has invested $18 million in expanding its footprint and creating 162 new jobs.

  • The $58.3-million Fort Bend Parkway Toll Road expansion project is scheduled for completion in 2024.

  • A $500-million, 92-acre, master-planned community with 2,400 residential units has been approved for development along the southwestern edge of Rosenberg.

MAP

CONTACT US

Investment Sales Contacts

Joseph Manuel

Vice President, Brokerage & Advisory
HVS
Houston
+1 (713) 955-0139
jmanuel@hvs.com

Andrew Frosch

Senior Vice President, Brokerage & Advisory
HVS
Houston
+1 (713) 955-0138
afrosch@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