- Marriott Branded Asset: The TownePlace Suites is a 127-room, upper midscale, extended-stay hotel built in 2000.
- Diverse Demand Generators: The hotel is positioned near many diverse demand generators such as the Lone Star College, Vintage Park, and CHI St. Luke’s Health. It is also located only 22 miles from Houston’s Energy Corridor.
- Significant Discount to Replacement Cost: Offered at an attractive 10.11% capitalization rate, the asset is priced at $70,079 per key.
- High Cash-Flowing Asset: The hotel achieved a 34% net operating income in 2018.
- Prime Location: The property is located with excellent accessibility along Highway 249 only 21 miles from the George Bush Intercontinental Airport, and is the only extended-stay hotel in the immediate vicinity.
Marcus & Millichap’s national hospitality group, as an exclusive representative of the seller, has been selected to market for sale the TownePlace Suites Houston Northwest located in Houston, Texas. The four-story, 127-room, upper midscale hotel offers commodities that include a kitchen, seating area with a sofa bed and work desk, an outdoor pool, a fitness center, and a convenience store. Built in 2000, this extended-stay, Marriott-branded property is strategically positioned on the highly trafficked Tomball Parkway near the CHI St. Luke’s Health – The Vintage Hospital which brings additional business to the area, boosting hotel occupancy.
Undergoing major expansions and renovations, the city of Houston is continuously expanding allowing the hotel to benefit from an influx of student, business, and leisure travelers. Additionally, the George Bush Intercontinental Airport is located less than 20 miles away and is the largest airport in the city; this positions the hotel to experience added transient business. The TownePlace Suites, priced at $8,900,000 or $70,079 a key, is well-maintained and offers strong returns upwards of 21 percent given our current capital structure.
The TownePlace Suites Houston Northwest generated an overall RevPAR of $55.71 for the calendar year 2018, this positioned the hotel to capitalize on total revenues above $2.6 million. The bottom-line margins of the hotel, which has benefited from the efficiencies of operating an extended-stay property, have also been excellent. For the calendar year 2018, the property generated a Net Operating Income flow-through percentage of 34 percent; this equates to nearly $900 thousand in earnings before interest, taxes, depreciation, and amortization.
The TownePlace Suites, which opened in 2000, is well-positioned along Highway 249 in a transient friendly location. While the hotel is ideally situated, it is currently ranked last in the competitive set for RevPar; this offers a new hotel owner an attractive value-add option. Due to positioning near key demand drivers of the area, Vintage Park and Lone Star College, this extended-stay hotel has significant upside potential to encompass a larger portion of the market share, increasing occupancy percentages for the property. Additionally, this deal offers a new owner the opportunity to acquire a coveted Marriott-branded asset in a major metropolitan market.
The TownePlace Suites Houston Northwest is a 127-room, two-building, four-story hotel constructed in 2000. The upper-midscale hotel features an outdoor swimming pool and fitness center. Other amenities include community-wide wireless internet access, a business center, Bar-B-Q and picnic area, and a complimentary hot breakfast buffet. All spacious guest rooms offer a flat-screen television, refrigerator, microwave, work desk, and full kitchens in the suites.
Houston, TX is located in Harris, Fort Bend, and Montgomery counties. Houston is the fourth-largest city in the United States and the most populous city in the state of Texas. In addition to Galveston, other major cities in the Houston metropolitan area include Baytown, League City, Missouri City, Pasadena, Sugar Land, Texas City, and Tomball.
Houston today is a reflection of postwar growth. The Houston skyline is now defined by numerous modern office towers – such as Pennzoil Place, Chase Tower, and Williams Tower. Downtown buildings are connected by a system of airconditioned, underground walkways linking 95 city blocks that allow pedestrians to avoid the high heat and humidity of the summers. The city is culturally diverse, the most diverse metro; fewer than half of its residents are of European descent, more than one-third are Hispanic, about one-fourth are African American, and a smaller but significant fraction is of Asian descent. There are more than 145 different languages spoke in Houston. While Spanish and English are Prevalent in the area, there is also Vietnamese, Chinese, Hindu, German, and Tagalog.
Houston remains a leading oil and petrochemical centre. Oil and gas exploration, refining, petrochemical production, and the manufacture of machinery for these industries are major factors. The city has also become a focal point for networks of petroleum and natural gas pipelines. High-technology industries, trade, and business and financial services have become prevalent in recent years. Medical research and healthcare have a considerable economic impact. The combined institutions of the Texas Medical Center constitute by far the largest employer in Houston. Engineering services, software production, aerospace research and development operations, and electronics, and computer manufacturing are also economic strengths. The immense resources of petroleum, natural gas, sulfur, salt, lime, and water in the region have created one of the world’s greatest concentrations of industries along the Houston Ship Channel.
Houston is one of the few American cities with a professional symphony orchestra and resident professional companies in ballet, theatre, and opera. The downtown theatre district is home to the major performing arts organizations. The Houston Symphony is based at Jesse H. Jones Hall of the Performing Arts, the Houston Ballet and Houston Grand Opera perform at Wortham Theater Center, and the Alley Theater houses the city’s resident theatre group. Southwest of downtown is an area of art museums and galleries anchored on the Menil Collection. The museum district has institutions devoted to medical science, the Holocaust, fine arts, and contemporary arts.
Houston is one of the country’s major transportation hubs, with extensive trucking, rail, and air connections. Two major airports, George Bush Intercontinental Airport and William P. Hobby Airport service the region; a third facility, Ellington Field, is used jointly by commercial, corporate, and military aircraft. George Bush International Airport had more than 40 million passengers pass through making it the 28th busiest airport in the world. The Port of Houston is now the second-largest in the United States in tonnage moved, a major international port, its top cargoes include petroleum and petroleum products, chemicals, grains, fertilizer, plastics, steel, and iron. A light-rail commuter line opened in 2004 running from Reliant Park to downtown.