Ideal Opportunity for Experienced Owner/Operator

• This is an ideal opportunity for an experienced owner/operator looking to acquire a recently renovated hotel asset in an active Houston submarket. The hotel is currently being operated by a third-party management company.

Year-End 2025 Rooms Revenue of $2.57 Million

• In 2025, the hotel recorded rooms revenue of $2.57 million (rounded) at an average RevPAR level of $73.

Upside Potential for a Robust Owner/Operator

• Per the 2025 year-end profit-and-loss (P&L) statement, the hotel registered a gross operating profit (GOP) of 17.5%.

• There are multiple opportunities for improvement that could lead to a collective decrease in rooms expense and administrative & general (A&G) expenses, specifically within the payroll department, allowing for stronger cash flow.

Recently Renovated, High-Quality Physical Product

• In 2023, the property underwent a comprehensive renovation per the brand’s “Formula Blue 2.0” design scheme.

• Given the recent renovation, no change-of-ownership property improvement plan (PIP) is expected for new ownership upon transfer.

Resilient Ramp-Up Period Post Renovation

• Since 2023 (following the renovation), the hotel has outperformed and consistently dominated its competitive set, having registered an annual average RevPAR penetration index of 125.8%.

• Corporate accounts were displaced during the comprehensive renovation; however, the hotel has since experienced a strong rebound in rooms revenue, earning over $2,600,000 (rounded) in rooms revenue in the past two years.

• Based upon HVS’s pro-forma projections, stabilized rooms revenue is anticipated to approach $3.0 million, with an NOI flow-through of $1,000,000 (rounded).

FIFA World Cup Expected to Welcome 500,000+ Visitors

• Houston is an official host city for the 2026 FIFA World Cup, with NRG Stadium scheduled to host seven matches this summer, including five group-stage matches (June 14, 17, 20, 23, & 26), one “Round of 32” match (June 29), and one “Round of 16” match (July 4).

• Local planning estimates point to material event scale, with Impact Houston 26 citing an expected 500,000+ visitors and approximately $1.5 billion in regional economic impact.

Priced Below Replacement Cost at $108,000 per Key

• This opportunity presents an investor the ability to acquire the property at a price well below replacement cost at $108,000 (rounded) per key.

• To construct a similar limited-service hotel asset with comparable amenities, the estimated all-in investment would be a minimum of $130,000 per key.

Holiday Inn Express & Suites Franchise

• Upon approval from the franchisor an investor can expect a new 15-year license agreement with InterContinental Hotels Group (IHG).

• The award-winning IHG Rewards 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 is an effective tool for driving customers to IHG hotels and creating brand loyalty.

Key Developments Fueling Market Expansion

• In October 2025, Memorial Hermann announced a $282.5-million expansion and renovation project, including the development of a new, eight-story, patient tower; expanded surgical capacity; upgraded imaging services; and a new rooftop helipad. Construction is expected to begin this year, further strengthening Katy’s healthcare cluster and supporting sustained medical-related lodging demand.

• In September 2025, Taiwan-based electronics manufacturer Inventec selected Katy for a 540,000-square-foot advanced electronics production facility at Park 10 Ninety-Nine. The project includes up to $55 million in leasehold improvements and is expected to create 500+ jobs, reinforcing West Houston/Katy as an emerging advanced manufacturing hub.

• In April 2025, McDermott executed a 50,000-square-foot lease at Westgate II, adding a second office, along with 254 employees, to the Energy Corridor.

• In 2025, TMEIC relocated its North American headquarters to Eldridge Oaks within the Energy Corridor, completing a $3-million renovation of approximately 23,878 square feet, while also advancing a $65-million, 267,000-square-foot manufacturing facility in Waller County.

• TxDOT is advancing a $157-million widening project along a 15-mile segment of State Highway 99 between I-10 and U.S. Highway 290, expanding capacity from four to six lanes. Construction is anticipated to begin later this year, enhancing regional mobility and supporting continued commercial and residential growth in the West Houston/Katy corridor.

• Houston Methodist West Hospital is undertaking a $247-million expansion project, with construction having begun in late 2024, in order to expand inpatient capacity and specialty services. Completion is targeted for 2027.

Excellent Location on Interstate 10 Among Strong Corporate & Leisure Demand Generators

• The property is strategically located on the corner of Interstate 10/Katy Freeway at Westgreen Boulevard, proximate to numerous dining, retail, and entertainment options, which is a positive attribute for both business and transient guests.

• Top employers in Katy include Academy Sports + Outdoors, BP North America, Igloo Products Corp, GEICO, Wood Group, Shell, Schlumberger, Texas Children’s Hospital West Campus, Houston Methodist West Hospital, Memorial Hermann Katy Hospital, and Amazon (fulfillment center & distribution hub).

• Leisure demand generators in the area include Katy Mills, Main Event Katy, TopGolf Houston Katy, Andretti Indoor Karting & Games Katy, Second Baptist Church West Campus, CityCentre Plaza, Katy Historic District, LaCenterra at Cinco Ranch (shopping destination), Typhoon Texas Waterpark, and the Great Southwest Equestrian Center.

Fully Unencumbered by Management

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