- SHORT SALE / DISTRESSED ASSET
- Priced Below Replace Cost at $55,738 Per Key
- 61-Room, Interior Corridor, Midscale Hotel Built in 2002
- Underperforming the Market by 40% -- Offers Significant Upside to Increase Room Revenue to be Competitive with the Market
- Ability for Hands-On-Owner-Operator to decrease Expenses & Increase Net Operating Income
- Three Miles from George Bush Intercontinental Airport, Houston largest airport and the 8th busiest in North America
Marcus & Millichap's National Hospitality Group, as the exclusive representative of the seller, is pleased to present for sale to qualified investors the Comfort Inn & Suites IAH Bush Airport East. The Choice-branded hotel is offered at $3,400,000 or $55,738 per key and sits on 1.4 acres within the second largest MSA in Texas, the Houston-Woodlands-Sugar Land MSA.
Located three miles from George Bush Intercontinental Airport, the hotel is properly positioned to take advantage of business and leisure travel in the market. With a substantial amount of travel and daily commutes at the I-69 and Will Clayton Parkway interchange, the hotel is poised to capitalize on daily traffic counts exceeding 197,000 on Interstate 69 and 37,500 on Will Clayton Parkway.
This three-story, 61-room hotel presents a new investor the chance to acquire this opportunistic asset within a major MSA. The hotel’s franchise will require a change-of-ownership PIP, with completion of needed renovations, this property can capitalize on an increase in customer demand. Though struggling year-to-date in competitive set RevPAR, the hotel’s 61.1% RevPAR index offers further opportunity for rate escalation from a new owner; additionally, a deeper look at departmental expenses will show current inefficiencies in operations with upside available to see an increase in EBITDA.
Popularly known as the Bayou City of Texas, and home to The University of Houston, Houston houses an abundance of economic drivers that boost the hospitality market. Some notable major employers near the hotel include ExxonMobil, Halliburton, and BJ Services. Furthermore, the Houston Zoo, Minute Maid Park, and Deerbrook Mall are all a short drive away. Lastly, the property benefits greatly from its location to George Bush Intercontinental and the surrounding economic impact of the airport.
Current expenses include provisions for a four percent capital replacement reserve. The hotel is offered fee simple, unencumbered by a management contract or debt.
The Comfort Inn & Suites IAH Bush Airport East is an upper-midscale Choice Hotels International-branded property. The hotel was built in 2002 with 61 rooms spread throughout three stories. The common area featured amenities include an outdoor pool, fitness center, meeting space, and laundry. The rooms feature flat-screen televisions, refrigerators, and microwaves.
Humble, Texas is part of the Houston metropolitan statistical area which is the fourth largest city in the United States. The Comfort Inn & Suites IAH Bush Airport East resides on 7041 Will Clayton Parkway and a short six minutes from the George Bush Intercontinental Airport. In May 2020 the airport was ranked Best U.S. Airport, Second-Best in North America at World Airport Awards, and home to 26 airlines with nonstop flights to five continents. Downtown Houston is 20 minutes from the hotel and currently has more than $4 billion in new construction projects that have been recently completed or currently underway. Known as Houston's vital urban center due to being a dynamic business climate there is over 51 million square feet of office space and the largest concentration of employment in the regions. The major room demand contributors include business travelers as well as those individuals wanting to visit the region's leisure destinations. The city is home to several professional sports teams, world-famous restaurants, amusement parks, and conventions.