- 96-Unit, Interior Corridor Hotel with Additional Airport Parking Land
- Offered at 3.19 Times 2017 Year -end Room Revenue
- Priced Significantly Below Replacement Cost - $52,000 Per Key
- Attractive Assumable Non-Recourse CMBS Loan
Investment Overview:
The Ramada Inn & Suites Houston Intercontinental Airport South is offered for sale at $5 million or approximately $52,000 per key, which is significantly below replacement cost. At list price, the hotel is being offered for sale at 3.19 times multiplier based on the 2017 year-end Room Revenue. With an NOI of approximately $507,743, the Ramada Inn & Suites has a capitalization rate of 9.64 percent based on list price, however, a new owner should be able to immediately reduce expenses by reducing salaries and outsourcing the existing shuttle service. The hotel's ADR index penetration is at 91 percent of its competitive set, which represents an additional area of opportunity for improvement that new ownership may capitalize on. A number of renovations have been made over the past year, which is expected to result in a minimal property improvement plan for the new investor at the time of transfer.
Investor must qualify for and be approved for existing non-recourse CMBS loan.
Property Overview:
Ramada Houston Intercontinental Airport South is a 96-unit, interior corridor, limited service hotel. Strategically located three miles south of George Bush Intercontinental Airport, the subject hotel provides convenience services for both business and vacation travelers. Along with an outdoor pool, this three-story hotel also features a business room, fitness center, two meeting rooms, a 1,150 square foot event space and wireless Internet access. Each room provides conveniences such as premium bedding, refrigerator, microwave, iron/ironing board, hair dryer and flat screen television.
Location Overview:
Houston is the most populous city in Texas and the fourth-most populous city in the United States. Just 23 miles north of Downtown Houston, George Bush Intercontinental Airport (IAH) sees a steady stream of traffic as roughly 800 flights depart each day. Just minutes from IAH, this comfortable hotel is situated near major shopping and corporate demand generators. Local corporate hotspots thrive at Siemens, Halliburton, Eagle Global Logistics and Baker Hughes, all within a four-mile range of the subject hotel. Especially for family vacations, the major attraction Houston Zoo, as well as the Houston Museum of Natural Science and the Downtown Aquarium, are 20 miles away from the hotel. Guest can also enjoy the Astros at Minute Maid Park or see diverse sports shows from the Houston Livestock Show and Rodeo to the Texas Bowl at the Reliant Center.
