Ideal Opportunity for an Experienced Owner/Operator

• Per the 2023 year-end profit-and-loss (P&L) statement, the hotel’s gross operating profit (GOP) was 35.9%, with a net operating income (NOI) flow-through of $342,000 (rounded).

• Great upside exists for a more “hands on” operator to restructure the hotel’s operations to maximize NOI flow-through.

• Based on a selection of similar hotel assets’ operating statements, the hotel should achieve a stabilized GOP margin above 42.0%.

Increasing Revenue Trend Post Renovation

• In 2023, the hotel achieved rooms revenue of $1,500,000 (rounded), a 15.6% increase compared to 2022.

• Per the March 2024 STR data, the hotel’s performance has improved, registering a 7.5% RevPAR increase over the last twelve months.

• Based upon the HVS pro-forma projections, stabilized rooms revenue in 2025 is anticipated to exceed $1,650,000 ($44 RevPAR), with an NOI flow-through of $520,000 (rounded).

Recently Renovated at a Discount to Replacement Cost

• Current ownership recently completed an extensive renovation of the property, including the public areas and guestrooms, at a cost of $1.65 million, or $16,200 per key (rounded).

• The change-of-ownership PIP report has been uploaded to the virtual deal room (VDR).

• This opportunity presents an investor with the ability to acquire the property at a price well below replacement cost at $59,000 (rounded) 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 Location Along U.S. Highway 290 Among Strong Demand Generators

• The property benefits from its strategic location near the U.S. Highway 290 and Interstate 610 interchange.

• Corporate demand drivers nearby include ADP, TAM International, Geospace Technologies, Memorial Hermann Greater Heights Hospital, Reynolds and Reynolds, Baker Hughes, Caterpillar, and United Plastics Group, as well as the Clay Campbell Business Park.

• The local submarket has been driven by significant residential and commercial development. The Timbergrove neighborhood benefits from overflow demand stemming from the Greater Heights neighborhood.

• Last December, multiple corporate tenants secured new, long-term lease agreements totaling over 90,000 square feet of office space in the Brookhollow Central office complex. CHRISTUS Health, Bowen Miclette & Britt Insurance Agency, and McGrath & Co. are a few of the tenants.

• Notable leisure demand generators nearby include The Galleria (shopping destination), the 1,500-acre Memorial Park (urban-center park), Mahatma Gandhi District, Waterwall Park, River Oaks District, Highland Village Shopping Center, and Uptown Park.

Growing Houston Market

• The Texas economy continues to grow, with nearly 370,000 jobs created in 2023, according to the Texas Workforce Commission, outpacing the national growth rate by a full percentage point.

• In terms of population, Houston is currently the fourth-largest city in the nation.

• According to the Greater Houston Partnership, economic growth in 2024 is anticipated to be led by the construction, energy, government, medical and healthcare, and professional service sectors.

• Diverse economic growth in healthcare, technology, and aerospace, along with major events held in Houston, have significantly contributed to Houston’s hotel resurgence. Furthermore, Houston’s lower room rates, compared with those of some other Texas cities, make it attractive for group bookings.