Strategic Location of Texas State Highway 249. The Property benefits from a superior location on densely developed commercial corridor of Texas State Highway 249, within minutes of all the local demand generators, which is crucial given the extended-stay nature of the business. For the business traveler, the Property is located in close proximity to the following companies: Hewlett Packard Houston Campus (three miles), Noble Energy (two miles), Weatherford (two miles), GE Oil & Gas (three miles), Siemens (six miles), FMC (four miles), Canrig Nabors Drilling (seven miles) and PAC (six miles).
Below Replacement Cost Opportunity. Based on current pricing guidance, the Hotel can be acquired for below replacement cost at $110,389 per room giving an investor an attractive basis. As the Houston market recovers, an investor will be able to capitalize on the appreciation.
Increasing Operating Performance. The Hotel finished 2017 at $2,311,283 room revenue with a $82.24 RevPAR, which is a 49.1% increase compared to year-end 2016 numbers.
Minimal PIP Expected. Current ownership acquired the Hotel in January 2017 with a ten year franchise license agreement and have completed their change of ownership PIP (posted in the Virtual Deal Room). Given the recent renovations, it’s expected that the hotel will have minimal to no change of ownership PIP.
Superior InterContinental Hotels Group (IHG) Branded Asset. The Property benefits from the superior IHG brand driven by IHG Rewards Club, the largest loyalty program in the hotel industry with over 100 million members. As of September 2017, Staybridge Suites had 250 hotels encompassing 27,205 rooms and 151 hotels in the development pipeline, all on a global basis. Catering to affluent business travelers across corporate, government and professional services markets, nearly 55% of their guests stay five+ nights – a coveted achievement throughout the hotel industry. Fewer guests staying longer drives occupancy and reduces team member to guest ratio, which means lower operating costs and some of the highest profit margins in the industry.
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.