- 78-Room, Interior Corridor, Upscale Hotel Built in 2016
- Well Positioned with Excellent Visibility from Highway 290
- Priced Below Replacement Cost at $96,154 Per Key
- 118 Percent RevPAR Index Compared to the Competitive Set
- 20 Miles from Downtown Houston
- Significant Upside Potential Through Increasing the Hotel’s Operational Efficiency
Investment Overview:
Marcus & Millichap's National Hospitality Group, as an exclusive representative of the seller, is pleased to present for sale to qualified investors the SpringHill Suites Houston Highway 290 Northwest Cypress. The Marriott-branded hotel is priced at $7,500,000 or $96,154 price per room; this represents a 4.88 times multiple on November 2019 trailing 12-month room revenues. An established property, constructed in 2016, is located along the Highway 290 corridor, near the intersection with Highway 6.
This four-story, 78-room hotel presents a new owner the opportunity to acquire a hospitality asset within the Houston MSA. This newly built hospitality asset is being sold as a short sale approved by the lender and priced significantly below replacement cost. The hotel is well-equipped with an outdoor pool, on-site bar, and conference centers.
Operationally, the hotel achieved $1,535,383 in room revenue, resulting in a net operating income of approximately 7.5 percent of total revenue; this translates to about $126,590 before debt service. Focusing on increasing the hotel's operational efficiency, a new owner will be able to manage more hands-on and reduce hotel expenses. The property has been consistently outperforming the competitive set in both occupancy and ADR, reaching a RevPAR penetration index of 118 percent.
The expenses include provisions for a three percent management fee and four percent reserve for capital replacement. The hotel is offered fee simple, unencumbered by a management contract and debt.
Property Overview:
SpringHill Suites by Marriott in Houston is a 78-room, four-story hotel, that was built in 2016. The all-suite, upscale hotel offers guest rooms with a kitchen/ kitchenette and flat-screen television. There are also four event rooms of 5,352-square-feet, a fitness center, and a swimming pool available to all guests.
Location Overview:
Houston, Texas is located in the southeastern part of the state and noted as the fourth largest city in the United States. The SpringHill Suites Houston 290 is near multiple diverse demand generators. The region of the city has multiple developments underway and the investment property is positioned near these room demand generators. In 2018, Megacenter, a Florida-based subsidiary of Chile-based Red Megcentro, was in the process of turning a former 233,627-square-foot Walmart Supercenter (2.0 miles) into a mixed use industrial flex, self-storage, retail, and office space as well as a gym and an auto center. In addition, the Houston Methodist Willowbrook Hospital is a 312-bed regional facility and offers a full-service, acute-care patient services. The hospital is consistently top-ranked by U.S. News among best hospitals in Texas and Houston. Other noted medical facilities in the region include the St. Luke’s Hospital and Memorial Hermann Hospital, all near the property. Hewlett Packard (8.9 miles), GE Oil & Gas (14.3 miles), Baker Hughes (6.9 miles), National Oil Varco (4.6 miles), Noble Energy (8.9 miles), FMC Technologies (12.0 miles) and Canrig Drilling Technology (9.3 miles) are nearby businesses which contribute to the diverse demand generators. Leisure tourists also visit Downtown Houston (21.9 miles) and the city center is home to professional baseball, basketball, and soccer teams. Travelers have the option to travel from two international airports in the region: The George Bush Intercontinental Airport (27.1 miles) and Hobby Airport (32.0 miles) which saw a cumulative of over an average five million international and domestic passengers monthly.
