High-Quality Hotel Asset

• This high-quality hotel asset is the one of the premier lodging choices in Sugar Land, having been built with custom amenities tailored to both the leisure and corporate segments.

Multiple Profit Centers, 3,290 Square Feet of Meeting Space and 3,500 Square Feet of Office Space

• The property features 3,290 square feet of meeting space and full-service bar capability.

• Additionally, the property contains 3,500 square feet of office space, with a designated elevator separate from the guest elevator.

TTM Rooms Revenue: $3 Million

• For the trailing-twelve-month (TTM) period through April 2025, the hotel’s rooms revenue amounted to $3,030,000 (rounded).

Upside Opportunity for a Robust Operator

• Since opening, the hotel has achieved an average gross operating profit (GOP) of 41.1%. Based on a selection of similar limited-service hotel operating statements, the hotel should achieve a stabilized GOP margin between 45.0% and 50.0%.

• The hotel is currently operated by management company with a full staff in place, making this an ideal turn-around opportunity for an active owner/operator. We see multiple opportunities for improvement that could lead to a collective decrease in rooms expense, specifically within the payroll department.

Underperforming Hotel, Significant Rooms Revenue Growth Potential

• Per the April 2025 STR trailing-twelve-month (TTM) data, the hotel ranked fourth (out of six) among its competitors in terms of both occupancy and RevPAR, registering an 87.8% RevPAR penetration index.

• If the hotel were to capture its fair share of market demand, at a RevPAR index of 100.0%, it would be able to generate over $3.5 million in rooms revenue.

• Given the newer construction, location, and brand affiliation, great upside exists for a more hands-on operator to restructure the hotel’s operations to maximize RevPAR penetration and NOI flow-through.

Well-Maintained, High-Quality Physical Product with Minor PIP Expected

• The hotel opened in October 2021, and ownership has maintained the physical asset well; thus, a minor change-of-ownership property improvement plan (PIP) is expected.

Priced Significantly Below Replacement Cost

• This opportunity presents an investor with the ability to acquire the property at a price well below replacement cost.

• To construct a similar limited-service asset with comparable amenities, the estimated all-in investment would be a minimum of $150,000 per key.

Highly Sought-After Hilton Franchise, World-Class Affiliation and Distribution Platform

• An investor can expect a new, long-term franchise license agreement with Hilton upon completion of the brand-mandated change-of-ownership PIP.

• The Hampton by Hilton flag is a proven brand that dominates the upper-midscale segment. Franchisees benefit from Hilton’s global strength, reputation, and unrivaled Hilton Honors™ guest loyalty program.

• An investor will benefit from operating a franchise of one of the world’s leading global hospitality companies. Every Hilton Inc. hotel and resort benefits from the unique system of innovative solutions and advanced technologies, known as the Hilton Performance Advantage, which delivers leading-edge support to consistently drive profits and efficiencies. It is a powerful resource for owners and operators, unrivaled in the industry. Hilton Honors™ is an award-winning guest loyalty program. Its roughly 115 million members account for more than 50% of all room nights globally for Hilton-branded hotels.

Excellent Highway 6 Location in the Expanding Sugar Land Market

• The property benefits from excellent visibility and accessibility given its location just off Texas State Highway 6, near Interstate 69, which is a major thoroughfare that provides easy access to Houston to the northeast.

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

• The 230,000-square-foot Fort Bend County Epicenter, which opened in 2023, includes a 170,000-square-foot arena along with pre-function space, a 17,000-square-foot multipurpose facility with 10,000-seat capacity, and a 38,000-square-foot pavilion.

• Lake Pointe Green, a transformative redevelopment of the former Fluor Corporation campus, is set to become a mixed-use development featuring up to 720 multi-family units, single-family homes, townhomes, park space, civic areas, and potential commercial and retail offerings. The project is supported by over $24 million in economic incentives and is expected to begin construction in late 2025.

• Frazer, a leading provider of emergency vehicles, relocated its headquarters from Houston to Sugar Land in 2025.

• In 2024, Bluebonnet Nutrition opened an $18-million nutraceutical manufacturing facility in Sugar Land, creating 200 new jobs.

Management Availability

• The hotel is being offered free and clear of any management encumbrances, providing an investor with the flexibility to revamp the operational strategies of the current operator.