Candlewood Suites Houston IAH Airport

Location: Houston, TX
Price: Call for offers
Rooms: 115
Lot Size: 4.14 acres
Year Built: 2009

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  • Below Replacement Cost Investment Opportunity. Based on current pricing guidance, the Hotel can be acquired significantly below replacement cost giving an investor a good basis. As the Houston market recovers, an investor will be able to capitalize on the appreciation. The change of ownership PIP is estimated to cost $1,500,000 or $13,043 per room in order to bring the Hotel up to current brand standards. When factoring this cost into the investment, an investor will still have a below replacement cost basis.
  • Underperforming Asset. Surveying the other extended-stay competitive hotels in the local market (see Lodging Market Overview), they are currently operating at an average RevPAR of $58.86 as of TTM July 2017. When compared to these specific competitive hotels, the Property is operating at an 52.1% RevPAR penetration index, showing significant upside for an investor who can implement an aggressive marketing & sales effort.
  • Strategic Location on Beltway 8 near Houston IAH Airport. The Property is located 2 miles from George Bush Intercontinental (IAH) Airport. IAH Airport is Houston’s largest airport and currently ranks fifth in the United States among U.S. airports with scheduled nonstop domestic and international service. For the business traveler, the Property is near the following: Halliburton (1 mile), Baker Hughes (1 mile), GE Oil & Gas (1 mile), North Belt Intercontinental Business Park (1 mile) and Pinto Business Park (1 mile).
  • Hurricane Harvey Impact on Houston Hotel Industry. Looking at hotel data from four comparable disasters (Hurricane Katrina, Superstorm Sandy, Hurricane Ike and Hurricane Andrew), demand rose by 10% to 40% in the surrounding markets in the month after each event. Demand was still up an average of 15% four months after each event because of displaced residents, FEMA staff, emergency personnel and construction workers. Growth rates by market will vary from Hurricane Harvey’s impact, with Houston likely to see the largest increases in demand.

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