Holiday Inn Express & Suites Wharton

10247 Highway 59, Wharton, TX 77488, US

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HVS Brokerage & Advisory, as the sole and exclusive advisory firm to ownership, is pleased to present the opportunity to acquire the 62-key Holiday Inn Express & Suites Wharton, a limited-service hotel asset in Wharton, Texas, approximately 60 miles southwest of Houston. The property benefits from its location along Interstate 59 near numerous demand generators including the Nan Ya Plastics manufacturing plant, Exelon Generation's Colorado Bend Energy Plant, Wharton County Junior College, and JM Eagle Co. (commercial piping manufacturer).


Ownership is motivated to sell the property and has agreed to reduce the price to $5,900,000, or $95,000 per key (rounded). Please contact James Rebullida for more details.

Texas South Area



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Financials as of TTM May 2024


Ideal Asset for Experienced Owner/Operator

  • The 62-key count is considered an ideal size for an experienced owner/operator.

  • Given the hotel’s high RevPAR numbers historically, this size of hotel is able to produce high gross house profit (GOP) levels, leading to a strong NOI flow-through for an active ownership group.

Stable Historical Topline Performance

  • In 2023, the hotel achieved rooms revenue of $2,300,000 (rounded), a 12.9% increase compared to 2022, reflecting its highest performance in recent years.

  • In 2023, room-night demand for the hotel and competitive set increased by 7.2% and 13.0%, respectively.

  • From 2018 through 2023, rooms revenue consistently averaged over $2,000,000 (rounded). During the same period, the hotel maintained its status as the market leader with an average RevPAR penetration index of 156.8%.

Post-PIP Upside

  • Upon completion of the change-of-ownership property improvement plan (PIP), an investor will have a newly updated, limited-service product boasting an excellent frontage location, as well as the ability to increase occupancy and ADR by implementing aggressive sales tactics to capture more demand and maintain its market dominance.

  • The PIP report has been uploaded to the virtual deal room (VDR), totaling an estimated $1,240,000, or $20,000 per key.

  • Based on HVS pro-forma projections, following the completion of the PIP, stabilized rooms revenue in 2025/26 is anticipated to exceed $2,000,000 ($88.00 RevPAR), with an NOI flow-through of $700,000 (rounded).

Stable Local Market

  • Wharton is considered a tertiary market, meaning less exposure and susceptibility to major economic headwinds that impact primary markets. The stability makes it an attractive location for long-term investment.

  • Wharton is located midway between Houston and Victoria, one hour to each city, and two hours from Corpus Christi.

  • Wharton has a strategic location along the Interstate 69 corridor, the primary U.S.-Mexico-Canada trade route. Wharton’s section of Interstate 69 is currently undergoing a $400-million upgrade, providing rapid access to the greater Houston metropolitan area and beyond.

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 $140,000 per key.

  • This opportunity presents an investor with the ability to acquire the property at a price well below replacement cost at $95,161 per key.

Holiday Inn Express & Suites Franchise

  • Upon approval from the franchisor and completion of the brand-mandated change-of-ownership PIP, an investor can expect a new, long-term license agreement with InterContinental Hotels Group (IHG). This presents a new owner with the opportunity to operate a hotel with one of IHG’s most prominent limited-service products. The brand’s success is largely attributed to IHG’s award-winning advertising campaigns and consumer awareness.

  • The award-winning IHG® Rewards Club loyalty program is one of the largest in the hotel industry, offering members more choices to redeem their points than any other hotel loyalty program in the world. Serving over 100 million enrolled members worldwide, IHG Rewards Club is an effective tool for driving customers to IHG hotels and creating brand loyalty.

 Excellent Location Along Interstate 69 Among Numerous Demand Generators  

  • The property benefits from its location along the frontage road of Interstate 69 in Wharton, which is less than 40 minutes from the city of Sugar Land. Hotel guests benefit from its proximity to a Walmart and multiple dining options.

  • Local demand generators include the Nan Ya Plastics manufacturing plant, Exelon Generation's Colorado Bend Energy Plant, Wharton County Junior College, and JM Eagle Co. (commercial piping manufacturer).

  • Additionally, leisure demand generators include the Plaza Theatre, the historic Town Square, Wharton County Historical Museum, the 20th Century Technology Museum, and the Morris Ranch & Carriage House.

  • Special events also typically play a role during key weekends, such as the Wharton County Youth Fair, the Wharton County Farmers' Market, Snow Day on the Square, Monterey Square Wine Festival, and Party Under the Bridge.

Management Availability

  • The hotel asset is being offered free and clear of any management encumbrances.



Investment Sales Contacts

Eric Guerrero

Senior Managing Director, Partner, Brokerage & Advisory
+1 (713) 955-0012

James Rebullida

Vice President, Brokerage & Advisory
+1 (713) 955-5580

Fadi Rawashdeh

Senior Associate, Brokerage & Advisory
+1 (713) 955-0013

Kyle Peterek

Senior Associate, Brokerage & Advisory
+1 (206) 259-7150