Strategic Location on Interstate 10 and State Highway 6. The Property is strategically located just off the intersection of Interstate 10 and State Highway 6, near several large power retail centers and restaurants, making it an ideal choice for guests. Local companies located nearby include: Accenture (one mile), Exxon Mobil (one mile), Mustang Engineering (one mile), Transocean Offshore (one mile), Conoco Phillips (two miles), Wood Group (two miles), Deepwater Drilling (two miles), Alliance WG Engineering (two miles) and Shell (three miles).
Strong Performance. Over the last three years, the Property has had an average room revenue and RevPAR of $2,368,770 and $88.21, respectively. Looking towards 2018, the Hotel is expected to achieve a $90.58 RevPAR leading to room revenue of $2,446,516. Looking at the STR report, the comp. set has seen a 8.7% increase in demand on TTM October 2017, showing that the local area has begun to recover.
Superior Hilton Branded Asset. Hilton has confirmed that the Property qualifies for a new 15 year franchise license agreement with the completion of the “Take Flight” PIP. Current ownership has ordered the PIP and it is available to prospective purchasers in the Virtual Deal Room.
Hurricane Harvey Impact on Houston Hotel Industry. Assuming that Hurricane Harvey has a similar impact as past major storms, that there is no significant increase in room rates and that there is no major decline in the number of available hotel rooms, then hotels in the five major Texas markets could generate an additional 3.4 million room nights of demand and roughly $430 million in additional revenue. Given CBRE’s current U.S. forecast of a 3.5% increase in RevPAR for Q4 2017, this additional demand would increase the RevPAR growth rate to 4.4% for the quarter and raise the overall RevPAR outlook for the year to 3.1% from our current forecast of 2.8%.
The representations contained on this Internet page are provided based on information deemed reliable. However, the same has not been independently verified. Principals are advised to conduct a thorough due diligence for any potential transaction. CBRE Group Inc. name and logo are used herein for information purposes only.
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.