-
Candlewood Suites Houston The Woodlands – Image Credit IHG Hotels & Resorts
The Candlewood Suites in The Woodlands, Texas, is up for sale, presenting a unique opportunity to acquire a premium extended-stay asset with substantial potential for value augmentation due to its prime location, strong in-place cash flow, and high barrier to entry in the market.
CBRE Hotels has announced the sale of the fee-simple interest in the Candlewood Suites in The Woodlands, Texas. This property is conveniently positioned off Interstate 45, a mere 35-minute drive from downtown Houston. The hotel’s location within The Woodlands area offers close proximity to key attractions including The Woodlands Mall, Cynthia Woods Mitchell Pavilion, as well as an extensive park complex consisting of 120 parks, 140 miles of hiking trails, and over 20 golf courses.
The sale of this hotel presents a distinctive investment opportunity due to various factors. Firstly, a minimal Product Improvement Plan (PIP) is anticipated since the current ownership is nearing the completion of the plan. This means the hotel will be delivered upon renovation completion, requiring minimal additional improvements from the new owners.
Secondly, the property benefits from its strategic location within four miles of six major hospitals in the area, including Houston Methodist The Woodlands Hospital, St. Luke’s Health Hospital, Memorial Hermann The Woodlands Medical Center, MD Anderson The Woodlands, and Texas Children’s Hospital. These medical facilities have driven significant regional development, with projects worth $1 billion executed over the last five years.
The Candlewood Suites reported strong financial performance for the year-end 2024 period, posting approximately $2.3 million in total revenues and achieving a net operating income margin of 33.5%. The robust financial health of the hotel coupled with its potential for increased market share makes it an attractive opportunity for a new operator looking to capitalize on the strong corporate, group, and leisure demand in the area.
Moreover, The Woodlands, a privately owned 28,000-acre world-class Master-Planned Community, imposes high barriers to entry for new market players due to strict deed restrictions and land use controls. No new select service hotel has been permitted since 2012, making Candlewood Suites a rare opportunity to acquire a property significantly below its replacement cost.
Finally, the hotel’s location offers convenient access to key hotel demand generators, such as The Woodlands Mall, The Cynthia Woods Mitchell Pavilion, and Market Street. It is also proximate to the regional offices and headquarters of many prominent companies, including ExxonMobil, Hewlett Packard Enterprise, Soltex, Inc., OXY, and others. The property’s proximity to a vibrant array of restaurants and mixed-use developments in the area further enhances its appeal as a viable investment.
Inquire at CBRE.
