New Fifteen Year License Agreement. Upon completion of the Formula Blue PIP a new buyer can expect a new fifteen year franchise license agreement from IHG. The estimated cost of the Formula Blue PIP is $15,000 per room or $1,215,000.
Stable History. Based on the period ending TTM September 2017, the room revenue is $2,417,232 and net operating income is $655,351. The Hotel has shown stable revenue and cash flow history with the last three years room revenue average of $2,359,483 and a net operating income average of $707,112.
Strong Location. The Property benefits from a strong location, beingless than a five-minute drive from the Parkdale Mall and nearby major restaurant and retail chains. Additionally, the Property is conveniently located near the following demand generators: ExxonMobil Refinery Main Entrance (8.4 miles), Ford Park Event Center (10.3 miles), Lamar University (11.2 miles) and Big Thicket National Preserve (27 miles). This Hotel is the closest premium branded hotel to Parkdale Mall and has benefited from the growth in the area.
Holiday Inn Express & Suites. In just 25 years Holiday Inn Express has grown to become IHG’s biggest global brand. Nearly half of IHG’s entire global pipeline is made up of Holiday Inn Express hotels. Current global distribution is 2,542 hotels encompassing 253,904 rooms with 702 hotels in the pipeline as of June 2017. Already hugely successful thanks to consistent belief in simple, smart travel and baked by an award-winning marketing campaign, the Holiday Inn Express brand is poised for continued growth.
Local Economy. A significant element of the region’s economy is the Port of Beaumont, the nation’s fourth-largest seaport by tonnage. The 842nd Transportation Battalion, and the 596th Transportation Group are both stationed at the Port in Beaumont. In addition to companies doing business within the city limits, several large industrial facilities are located within the city’s five-mile extraterritorial jurisdiction boundaries including the ExxonMobil Beaumont refinery and chemical plants, Goodyear Beaumont chemical plant and Dow chemical plant.
US Gulf Coast Accounts for Over Half of the Refining Capacity in the US. The total operating refining capacity in the US stands at approximately 18.4 million bpd (barrels per day). The Gulf Coast, a key US refining region, accounts for approximately 9.6 million bpd of total refining capacity, which represents 52% of the total refining strength in the country. Texas contributed 30% to the total refining capacity in the country.
ExxonMobil Beaumont Polyethylene Expansion. Announced in November 2016, ExxonMobil has begun construction on its $1.2 billion expansion at its Polyethylene plant on U.S. 90. Projected completion for the expansion is mid 2019 with an estimated 1,400 industrial construction workers to be employed at the project’s peak. The BPEX project will increase capacity by 65 percent – or approximately 716,502 tons per year. The plant is already at about 1.1 million tons of production a year.
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Michael Yu and Yu Hospitality Real Estate Advisors, Inc. are licensed real estate brokers in the state of Texas. Rahul Bijlani, Eric Guerrero, Tyler Bean, Andrew Frosch, Dennis Drake, Agrama Mannapperuma and Pravin Boteju are licensed salespersons in the state of Texas and affiliated with and sponsored by CBRE Group Inc.