In Brief: A 109-room Holiday Inn Express & Suites in the Spring-Woodlands area north of Houston is being marketed as a value-add hotel investment, with projected first-year net operating income of about $1.29 million, a planned 15-year IHG franchise agreement and reported revenue growth through June 2026.
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Holiday Inn Express in Spring-Woodlands Area Offered for Sale With 109 Rooms
Property Overview
The Holiday Inn Express & Suites Spring-Woodlands Area, in the Houston North/Woodlands submarket, is listed for sale as a value-add hospitality investment. The 109-key hotel opened in November 2020.
Projected 2027 financials include an average daily rate of $125, occupancy of 76%, revenue per available room of $95, room revenue of $3.78 million and net operating income of $1.285 million. The projected capitalization rate is 8.4%.
The hotel qualifies for a new 15-year franchise license agreement with IHG at closing, subject to brand approval. It is offered free and clear of management encumbrances, allowing a buyer to install a preferred management company or self-operate the hotel upon IHG approval.
Operating Performance
The trailing 12-month profit-and-loss summary through June 2026 reported approximately $3.70 million in total revenue and approximately $1.20 million in net operating income. The hotel produced more than $1.2 million in net operating income, less reserves for replacement, in 2024, 2025 and the trailing 12-month period through June 2026, averaging approximately $1.28 million annually.
Rooms revenue increased from approximately $2.72 million in 2023 to $3.52 million in 2024 and reached approximately $3.58 million for the trailing 12-month June 2026 period. That total exceeded full-year 2025 rooms revenue by approximately 4.5%, with stabilized occupancy of 74.8% and an average daily rate of approximately $120.
Revenue Per Available Room Growth
The June 2026 STR report showed year-to-date RevPAR increased 8.9% to $96.76 from the same period in 2025, driven by occupancy growth of 4.2% and average daily rate growth of 4.5%.
Building Condition and Brand Standards
The property was constructed roughly six years ago with a custom design scheme. Only a minor change-of-ownership property improvement plan is anticipated. The report has been ordered and will be uploaded to the virtual deal room upon receipt.
IHG’s April 2025 Quality Evaluation reported scores of 100.0% in Brand Safety Standards and Brand Standard Major Performance, 93.4% in the Rolling Six-Month Guest Love category and 96.1% in Elite Cleanliness.
Spring-Woodlands Market
The hotel is in the Spring/Woodlands/CityPlace corridor north of Houston, with demand tied to corporate, energy, healthcare and leisure activity. The Woodlands is a 28,000-acre master-planned community with more than 185,000 residents and over 1,700 businesses and corporations.
CityPlace is a 2,000-acre mixed-use development with more than 14 million square feet of commercial office space; 750,000 square feet of retail, dining and entertainment uses; and approximately 290 acres of parks and trails.
Lodging demand generators include ExxonMobil, Hewlett Packard Enterprise, Occidental Petroleum, Baker Hughes, Chevron Phillips Chemical Company, Huntsman, Halliburton, Memorial Hermann The Woodlands Hospital, The Woodlands Mall and the Cynthia Woods Mitchell Pavilion.
Memorial Hermann The Woodlands Medical Center, the largest health care employer in Montgomery County with more than 2,600 employees, recently completed a $250 million campus expansion.
Development and Investment Considerations
The hotel is offered below estimated replacement cost, which exceeds $150,000 per key for comparable new limited-service hotel construction in suburban Houston.
Inquire at HVS.
