Unencumbered Offering, Flexibility to Rebrand or Convert to Multi-Family Residential

• The existing franchise agreement expires this year, offering an investor the flexibility to choose an alternative hotel branding option or reposition the property as a multi-family residential asset.

Upside Potential for a Robust Operator

• The hotel is lacking managerial attention from the existing ownership group. Great upside exists for a more experienced owner/operator to restructure the hotel’s operations and implement cost controls to improve both revenues and net operating income (NOI) flow-through.

• Per the previous profit-and-loss (P&L) statements, the hotel registered an average gross-operating-profit (GOP) of 30.0% from 2021 through 2024. Comparable operating statements for similar hotel assets indicate that the average GOP should be between 44.0% and 48.0%.

• After completing the change-of-ownership PIP, new ownership will have a blank slate to implement its own revenue management strategy, with the ability to drive room rates higher.

Desirable Extended-Stay Hotel Operation

• The Staybridge Suites by IHG brand has a strong reputation in the industry as one of the leading upscale extended-stay products; moreover, extended-stay hotels are highly desirable assets to own and have proven their resilience during downturns.

• The all-suite design promotes guest independence, yielding to lower housekeeping costs and potentially higher profits. This business model benefits an investor in the ability to operate a hotel that yields high GOP margins and NOI flow-through.

Stable Historical Performance, Three-Year-Average Rooms Revenue of $2 Million

• Since 2022, the hotel has averaged top-line rooms revenue of $2,000,000 (rounded).

TTM Rooms Revenue of $2.25 Million

• Per the trailing-twelve-month (TTM) data through April 2025, the hotel earned $2,250,000 (rounded) in rooms revenue, leading to a $75 RevPAR.

Underperforming Hotel, Significant Rooms Revenue Growth Expected

• Per the TTM STR data through March 2025, the hotel ranked fifth (out of seven) among its competitors in terms of occupancy and fourth in terms of RevPAR.

• Post renovation, upside exists for an experienced operator to implement more-aggressive sales strategies to improve both occupancy and top-line performance.

Stabilized Rooms Revenue of $2.4+ Million Projected

• Based upon HVS’s pro-forma projections, stabilized rooms revenue is anticipated to surpass $2.4 million, with an NOI flow-through of $800,000 (rounded).

15-Year Staybridge Suites License Agreement Expected

• Upon approval from the franchisor and completion of the brand-mandated change-of-ownership PIP, an investor can expect a new, 15-year license agreement with IHG, should an investor want to continue with the Staybridge Suites brand.

• The PIP report has been ordered and will be uploaded to the virtual deal room (VDR) once it is available.

Excellent Visibility & Location Among Strong Demand Generators

• The property benefits from excellent visibility along the Beltway 8 frontage road, which straddles the Sam Houston Tollway, near its intersection with Kempwood Drive. Sam Houston Tollway is a major thoroughfare in Houston that accommodates thousands of cars daily.

• Corporate demand generators in the area include the Claymoore Business Park, West Belt Business Park, Town & Country Business Park, Cameron (a Schlumberger company), GE Oil & Gas, BP Energy Company, Wyatt Field Services, Shell Oil Company, and CITGO Petroleum, as well as Wallis Bank, Higginbotham (financial services), Travelers (insurance), Mediterranean Shipping Company (MSC), and Memorial City Medical Center.

• Leisure demand generators in the area include Baseball USA Park, Sam Houston Race Park, Memorial City Mall, and CityCentre Plaza.

Key Developments Fueling Market Expansion

• Last month, Group 1 Automotive, a Fortune 300 automotive retailer, announced plans to expand its headquarters at Town Centre Two; the company moved into the 46,000-square-foot space in the summer of 2024. The expansion underscores Group 1's growth trajectory and its commitment to the Houston area.

• In March 2025, Schneider Electric inaugurated its flagship Energy Innovation Center in Houston's Memorial City area. This 10,500-square-foot facility serves as a hub for showcasing the company's latest advancements in energy management and automation technologies. The center is designed to host training sessions, demonstrations, and collaborative events, attracting professionals and clients from various sectors.

Fully Unencumbered by Management

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