- 90-Room, Midscale, Extended-Stay Hotel Opened in May 2018
- Conveniently Located with Excellent Visibility from I-45, the Gulf Freeway
- Opportunity to Purchase a Recently Constructed Hilton-Branded Hotel
- Minimal Change of Ownership PIP Due at Transfer
- Diverse demand Drivers: corporate, petrochemical, NASA Space Center, & Kemah Boardwalk
Marcus and Millichap's National Hospitality Group, as an exclusive representative of the seller, is pleased to present for sale to qualified investors the newly constructed Home2 Suites Texas City. The Hilton branded hotel is priced at $12,510,000 or $139,000 price per room. Opened May 22, 2018, the hotel is conveniently located along the Interstate 45, Gulf Freeway and surrounded by major industry demand generators. The property benefits from business generated by corporate, petrochemical, port distribution, and entertainment venues such as NASA, Kemah Boardwalk and Galveston Beach, only minutes away. The hotel features an outdoor pool, fitness center, and conference facilities. This four story, 90-room hotel presents an experienced hotelier the ability to purchase an opportunistic property with substantial upside potential.
Within its first two months of performance, the hotel has achieved an occupancy of 68 percent and an average daily rate of $120. Operationally, the hotel is expected to achieve room revenues upwards of $3,375,746 for the 2019 fiscal year. At approximately 40.9 percent of gross operating revenue, the subject property's net operating income equates to $1,380,066.
There are barriers to entry in the Texas City market as the city of Texas City introduced zoning restrictions in 2016, which placed a moratorium on hotels without full service food & beverage service. The Department of Energy has just granted a 20 year permit for Galveston Bay LNG’s project located in Texas City and which will be the largest industrial development in the county for over a decade. In addition, Land Tejas Cos. is developing a 4000-home master planned community straddling Interstate 45 right across from the property. Retail growth follows these rooftops creating positive growth for this hotel’s immediate environment.
The Home2 Suites by Hilton Texas City Houston is a 90-room, four-story hotel opened in May 2018. Well-equipped with numerous common area and guest room amenities, this midscale extended-stay hotel offers spacious guest rooms, some with higher, vaulted ceiling heights, that come furnished with a microwave, refrigerator, kitchenette with cookware, a separate seating area, sofa bed, work desk, and a flat-screen television with premium channels. Some splendid common area amenities the hotel has to offer consist of an outdoor pool, fitness center, business center, conference facilities, meeting rooms, and dry cleaning services.
Texas City, Texas is a city located in Galveston County in the southeast region of the state, 14 miles northwest of Galveston and 42 miles southeast of Houston. The Home2 Suites by Hilton Texas City Houston is superbly positioned on the Gulf Freeway, near Interstate 45 and 30th Avenue North. With the city’s major employers and popular revenue generators in close proximity to the property, this sought after hotel benefits from many key industries of the town which include healthcare & social assistance, retail trade, and manufacturing. Mainland Medical Center and DOW Chemical Company, two of the city’s largest employers located approximately 3.5 and 6.4 miles from the hotel respectively, are prime revenue drivers for the surrounding area. Other major employers that are responsible for a significant portion of the workforce include Marathon Texas City Refinery (8.9 miles), Valero Texas City Refinery (9.5 miles), Eastman Chemical Co. (9.7 miles), Moody Gardens (18.7 miles), Gulf Copper Dry Dock Rig Repair (19.7 miles). Revenue generators in the area, like Tanger Outlets Houston (3.1 miles) and NASA Space Center Houston (14.1 miles) help bring additional revenue to the hotel through an increase in transient business. Extra demand drivers for the city include Kemah Boardwalk (12.3 miles), and the William P. Hobby Airport (24.4 miles).