Ten-X Auction - Dates: May 15 - May 17, 2023 - Starting Bid: $1,500,000
- Three-Story, 73-Room, Wyndham Hotels & Resorts-Branded Hotel
- Easily Accessible from Interstate 45 and Situated Near Houston’s Largest Employers and Highest Value Businesses
- Located Within the Houston MSA Less Than a Mile from Hobby Airport and About 30 Miles from George Bush Intercontinental Airport
- Maintained High Historical RevPAR Penetration Index (RPI) with YE 2022 at 133 Percent RPI
- TTM December 2022 Room Revenues Exceeded $1.15 Million while Maintaining an NOI Over $154 Thousand
- Offered Fee-Simple, Unencumbered by Management Contracts or Existing Debt
Investment Overview
As the exclusive representative of the seller, Marcus & Millichap's National Hospitality Division is pleased to present for sale to qualified investors the La Quinta Inn & Suites by Wyndham Houston Hobby Airport (‘Hotel’ or ‘Property’) located in Houston, Texas. The Wyndham Hotels & Resorts-branded Hotel is scheduled for auction on Ten-X from May 15th –May 17th, 2023.
The La Quinta Inn & Suites by Wyndham Houston Hobby Airport is a 73-room, three-story Hotel stationed at 8776 Airport Boulevard in Houston, Texas, just off Interstate 45. Various common area amenities at the Property include an outdoor pool with a hot tub, breakfast area, fitness center, business center, and a laundry facility.
Houston is known for its thriving industrial sector with companies and industrial complexes dispersed throughout the region. In Deer Park, Shell Deer Park Refining Company is a joint venture between Shell Oil Company and Pemex Refining, while Dow Chemical Company produces a wide range of chemical products. Moreover, Pasadena, Texas, is another major industrial district in the Houston metropolitan area, with companies like Chevron Philips Chemical Company and LyondellBasell Industries, both of which manufacture and store a host of chemical products. Another part of the Houston MSA industrial sector is in Texas City, which has complexes for Marathon Petroleum Refinery and BP Texas City Chemicals. ExxonMobil Chemical Company also has a large presence in Houston, with multiple manufacturing facilities producing a range of products, including plastics, rubber, and other chemicals. The Port of Houston also serves as a major hub for shipping goods and is one of the largest ports in the United States.
Tourism to the city is largely attributed to the incredible diversity of activities and restaurants that visitors can enjoy. Leisure tourists also visit Downtown Houston, and the city center is home to professional baseball, basketball, and soccer teams. Business and leisure visitors can travel through two regional international airports: The George Bush Intercontinental Airport and Hobby Airport, which saw over five million international and domestic passengers in March 2019.
In the past 12 months, monthly occupancy has averaged 57.5 percent, essentially matching the market average of 58.1 percent for the same period. As of February, twelve-month average RevPAR in the Houston Hobby Airport/NASA hotel submarket was climbing at an annual rate of 3.9 percent.
In the trailing twelve-month period ending in December 2022, the limited-service Hotel recorded room revenues of over $1.15 million and a net operating income over $154 thousand, or 12.91 percent as a percentage of total revenues, after a 4 percent capital replacement reserve. A prospective buyer should be able to capitalize on the anticipated increase in RevPAR through better revenue management, not only benefiting from increased market share but also higher NOI flow-through.
