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

• The 58-key count is considered an ideal size for an experienced owner/operator.

• Per the March 2024 STR Report, the hotel ranked fourth out of the six competitive hotels in terms of occupancy and RevPAR, and fifth out of six in terms of average daily rate (ADR); thus, upside exists for a more “hands on” owner/operator to improve overall performance.

Strong Historical Revenue and Rebounding Performance

• Prior to the COVID-19 pandemic, from 2014 through 2019, the hotel demonstrated strong historical revenue, averaging approximately $1,134,912 annually and showing tremendous upside for a new investor. The yearly revenue figures are as follows:

  • 2019: $1,065,761

  • 2018: $1,062,035

  • 2017: $1,362,492

  • 2016: $1,018,004

  • 2015: $1,100,236

  • 2014: $1,200,947

• Given the challenges presented by a broken elevator a couple of years ago, current ownership invested in a brand-new elevator, ensuring enhanced accessibility and operational efficiency, ultimately revitalizing revenue streams following the installation in July 2022.

• Rooms revenue increased from $844,814 in 2022 to $974,657 in 2023, representing an increase of 15.38%. Additionally, compared to last year, rooms revenue increased 21.65% through the year-to-date period ending April 2024.

• When comparing the trailing-twelve-month (TTM) data through March 2024 against the data for TTM period ending in March 2023, the hotel’s TTM RevPAR increased by 12.8%, outpacing the competitive submarket’s 7.6% growth.

Recently Renovated at a Discount to Replacement Cost

• Current ownership recently carried out a renovation of the property, including the public areas and guestrooms, at a cost of $400,000, or $6,900 per key (rounded).

• This opportunity presents an investor with the ability to acquire the property at a price well below replacement cost at $75,862 per key.

Excellent Location Among Strong Corporate & Leisure Demand Generators

• The property benefits from several nearby attractions and institutions. Key demand generators include the NASA Johnson Space Center, Baybrook Mall, and Kemah Boardwalk. Additionally, the property is close to the University of Houston-Clear Lake, as well as various dining and entertainment venues, which makes it appealing to both business and leisure travelers.

• The property is less than two miles from the three main hospitals in Webster: HCA Houston Healthcare Clear Lake, UTMB Health Clear Lake Hospital, and Kindred Hospital Clear Lake. These hospitals serve the healthcare needs of Webster and the surrounding communities with a variety of specialized services.

Key Developments Fueling Market Expansion

• The Great Wolf Lodge, set to open later this year, is a major attraction that will feature a 95,000-square-foot indoor waterpark and a 400,000-square-foot resort. It will be the first Great Wolf Lodge in the Houston region and is expected to become a significant family destination.

• Adjacent to the Great Wolf Lodge, the Flyway Development is an 80-acre mixed-use project. It will include retail spaces, dining options, and entertainment venues, making it a vibrant hub for both residents and visitors.

• NASA and the Texas A&M University System have announced a partnership to utilize the 240-acre development known as Exploration Park, located with NASA’s Johnson Space Center in Houston. Under this agreement, Texas A&M will construct a facility aimed at advancing research and development for human spaceflight, thereby contributing to the growth of the commercial space sector.