- Attractive Pricing Metrics: Offered below replacement cost at under $86,806 per key and a 3.98 RRM.
- Turnkey Investment with Minimal PIP: Extensive renovations completed in 2019–2020 bring the asset into compliance with IHG standards—offering investors a low capital expenditure opportunity with limited brand-required improvements.
- Strong and Diverse Demand Drivers: Sustained occupancy from industrial, maritime, and leisure travel, supported by proximity to petrochemical complexes, Texas City Industrial Complex, and cruise traffic.
- Prime Freeway Location: Positioned directly along I-45 (Gulf Freeway), providing direct connectivity between Houston and Galveston and convenient access to major employers and the Port of Galveston.
- Brand Strength and Market Performance: Holiday Inn Express & Suites, a flagship brand of IHG, continues to deliver consistent revenue performance, high brand loyalty, and broad customer recognition.
INVESTMENT OVERVIEW
As the exclusive representative of the seller, Marcus & Millichap's Hospitality Division is pleased to present for sale to qualified investors the Holiday Inn Express & Suites Texas City (‘Hotel’ or ‘Property’) located at 2440 Gulf Freeway in Texas City, Texas. This IHG-branded Hotel is offered at $6,250,000 or $86,806 per key.
This four-story, limited-service hotel was constructed in 2006 on a 1.33-acre parcel, offering 72 guest rooms across 48,292 square feet of gross building area. Positioned along the Gulf Freeway (Interstate 45), the Holiday Inn Express & Suites providing investors a compelling opportunity to acquire a strong-performing hospitality asset in a high-demand market corridor connecting Houston and Galveston. The Hotel features a mix of guest rooms and suites, modern common areas, and a full complement of amenities including complimentary hot breakfast, outdoor pool, fitness center, business center, and meeting accommodations.
The hotel underwent a full renovation in 2019–2020, bringing the property into full compliance with current IHG brand standards and ensuring minimal future Property Improvement Plan (PIP) requirements for a new owner. Major upgrades included the replacement of 60 PTAC units, all upper-floor HVAC systems, and complete stucco and plywood replacement on the east and west elevations.
Additional enhancements comprised new commercial laundry equipment, 50 televisions, 45 toilet pressure tanks, 20 king mattresses, 50 microwaves, 45 refrigerators, and upgraded LED lighting throughout the parking lot. The property also received new flagpoles, attic ventilation fans, a pool compressor, elevator room A/C, and a modernized fire panel with new sprinkler heads.
Within the next six months, ownership plans to complete the elevator door system replacement project, further improving operational reliability and guest experience.
Texas City is a thriving industrial and commercial hub located along the Texas Gulf Coast, supported by a robust mix of petrochemical, manufacturing, logistics, and maritime industries. The property’s strategic location is less than 20 miles from the Port of Galveston and less than 12 miles from the Port of Texas City, both of which drive consistent lodging demand from contractors, maritime workers, and corporate travelers. In 2024, the Port of Galveston saw nearly 1.5 million cruise passengers across 354 sailings, with projections for 2025 exceeding 1.75 million passengers, further enhancing area hotel demand. Moreover, leisure and tourism activity remain strong, with nearby attractions including the NASA Johnson Space Center, the Great Wolf Lodge, Texas Fun and Social, Lagoon Fest, Disney Cruise Line, Galveston Island, Moody Gardens, Schlitterbahn Waterpark, and the Tanger Outlets in Texas City. The area is also home to Lago Mar, a 2,033-acre master-planned community that will feature several lakes, open areas, parks, walking trails, and the nation’s largest crystal lagoon. When complete, the community will have 4,500 homes and approximately 14,000 residents.
