La Quinta Inn & Suites by Wyndham Pearland

9002 Broadway Street, Pearland, TX 77584, US

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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 Pearland – Houston South, a limited-service hotel asset in Pearland, Texas. A more “hands on” investor will have the ability to realize the significant upside of renovating and owning a hotel property with further potential at a price well below replacement cost. The property benefits from its strategic location along Broadway Street in Pearland, within two miles of State Highway 288, which provides an attractive environment for visitors given its numerous retail and dining options, as well as sports and leisure-related facilities.

Pearland, TX

Submarket

Value-add

Investment Type

$5,200,000

Pricing Guidance

56

Keys

2007

Year Built

$98.99

Average Daily Rate

65.6%

Occupancy

$64.90

RevPAR

$1,326,556

Room Revenue

Financials as of TTM April 2024

PROPERTY HIGHLIGHTS

Strong Market Fundamentals and Increasing Performance

  • The hotel has achieved an impressive average rooms revenue of $1,287,412 over the course of its 17-year history, highlighting consistent financial strength and success.

  • Per the December 2023 STR Report, year-to-date room-night demand for the hotel and submarket increased by 10.0% and 2.4%, respectively.

  • In 2023, the hotel generated almost $1,300,000 in revenue, which was an 18.0% increase from the previous year.

Limited Hotel Construction in the Area

  • Only three new hotels have been added to Pearland since 2011, creating a market environment with reduced competition.

    • Holiday Inn Express & Suites Houston South – Pearland – January 2011

    • WoodSpring Suites Houston 288 South Medical Center – April 2018

    • Home2 Suites by Hilton Houston Pearland – October 2019

Ideal Opportunity for an Experienced Owner/Operator to Improve Performance

  • The 56-key count is considered an ideal size for an experienced owner/operator, and the capability to add five more rooms provides an additional avenue for boosting revenue opportunities.

  • Per the December 2023 STR Report, the hotel ranked third out of five competitive hotels in terms of average daily rate (ADR), which shows significant room for improvement.

Conversion Opportunity in IHG’s Latest Midscale Hotel Venture

  • InterContinental Hotels Group (IHG) has introduced Garner Hotels, a groundbreaking midscale brand that was unveiled in August 2023. Positioned as an “affordable, amenity-rich” choice for discerning travelers, Garner Hotels not only promises an exceptional experience for guests but also offers a compelling investment proposition for owners seeking higher returns.

Excellent Broadway Street Location in the Expanding Pearland Market

  • Pearland has become one of Houston's primary bedroom communities, with many residents commuting to other areas of the MSA for work. As the population has grown, new developments in Pearland have been predominantly located on the west side of town near State Highway 288, while the east side, or Old Pearland, retains the qualities of the old rural town.

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

  • While Pearland is not known as a leisure and tourism destination, the city benefits from its proximity to Houston and the many major sporting, cultural, and entertainment venues in the Houston area. Additionally, weekend demand comprises travelers passing through en route to other destinations, people visiting friends or relatives, and other similar weekend demand generators.

MAP

CONTACT US

Investment Sales Contacts

Eric Guerrero

Senior Managing Director, Partner, Brokerage & Advisory
HVS
Houston
+1 (713) 955-0012
eguerrero@hvs.com

Andrew Frosch

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

Joseph Manuel

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