Ideal Opportunity for Owner/Operator to Acquire First Hilton-Affiliated Asset

• This is an ideal opportunity for an owner/operator to acquire its first Hilton-branded asset.

Highly Sought-After Hilton Upscale Extended-Stay Franchise with 15-Year Agreement

• The Homewood Suites by Hilton brand has a strong reputation in the industry as one of the leading premium upscale extended-stay products.

• 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 gross operating profit (GOP) margins and NOI flow-through.

• An investor can expect a new, 15-year franchise license agreement with Hilton.

Recently Renovated Asset, Minor PIP Expected

• In 2023/24, the property underwent an extensive, $2.0-million ($27,000 per key) renovation that addressed the guestrooms and interior common areas.

• Given the recent renovation, a minimum change-of-ownership property improvement plan (PIP) is expected upon transfer.

Year-End 2025 Rooms Revenue of $2.1 Million

• In 2025, the hotel recorded rooms revenue of $2.1 million (rounded) at an average RevPAR level of $78.

Operational Upside for a New Operator to Improve NOI Flow-Through

• Comparable operating statements for similar hotel assets indicate that the average GOP should be between 44.0% and 50.0%.

• 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.

Underperforming Hotel, Significant Rooms Revenue Growth Expected

• Per the March 2026 STR trailing-twelve-month (TTM) data, the hotel ranked third (out of six) among its competitors in terms of occupancy and fourth in terms of RevPAR.

• With the updated amenity offerings and strong Hilton affiliation, upside exists for an experienced operator to implement more-aggressive sales strategies to improve both occupancy and top-line performance.

FIFA World Cup Houston 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 $121,600 per Key

• This opportunity presents an investor the ability to acquire the property at a price well below replacement cost at $121,600 (rounded) per key.

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

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 the submarket’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 July 2025, DBR Engineering Consultants Inc. announced a 47,150-square-foot headquarters lease at the newly renovated Four Westlake Park (a 54.0% expansion), with plans to relocate approximately 100 employees to the Energy Corridor by the end of June 2026, underscoring continued flight-to-quality trends and renewed leasing momentum in the submarket.

• 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.

• 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 off the Interstate 10/Katy Freeway/Energy Corridor, proximate to numerous dining, retail, and entertainment options, which is a positive attribute for both business and transient guests.

• The Energy Corridor is a business district, located on the west side of the metropolitan area between Beltway 8 and the Grand Parkway. The district straddles a seven-mile stretch of Interstate 10 from Kirkwood Road westward to Barker Cypress Road and extends south along Eldridge Parkway to Briar Forest Drive. It is home to several of the largest international energy companies in the world, as well as 300 multi-national, national, and local companies.

• Corporate demand generators in the area include Accenture, Exxon Mobil, Mustang Engineering, Transocean Offshore, Conoco Phillips World HQ, Wood Group, Deepwater Drilling, Alliance WG Engineering, and Shell. Leisure demand generators in the area include Topgolf, CityCentre Plaza, Town & Country Shopping Center, Memorial City Mall, and Bear Creek Pioneers Park.

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.