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Comfort Suites Houston, TX near Texas Medical Center NRG Stadium – Image Credit HVS
HVS Brokerage & Advisory has announced the opportunity to acquire the 55-key Comfort Suites Near Texas Medical Center – NRG Stadium. The hotel is located in a highly desirable area in Houston and is being offered as part of a Chapter 11 bankruptcy process. With a consistent revenue history and potential for value-add through property improvement, this asset presents a promising investment opportunity.
Potential Acquisition of Comfort Suites near Texas Medical Center – NRG Stadium
The 55-key Comfort Suites Near Texas Medical Center – NRG Stadium, a limited-service hotel situated in one of Houston’s highly desirable submarkets, is up for sale. The exclusive advisory firm to ownership, HVS Brokerage & Advisory, has highlighted the significant potential of acquiring and renovating this asset, which is priced substantially below the replacement cost.
Bankruptcy Sale and Desirable Location
The hotel is being offered as part of a Chapter 11 bankruptcy process, which allows a qualified buyer to acquire it free of liens and encumbrances, subject to bankruptcy court approval. The hotel’s prime location in the densely developed Texas Medical Center (TMC) and NRG Park neighborhood, which has high land costs and limited franchise options, makes it a highly sought-after asset.
Investment Opportunity and Operating Expenses
The 55-key count is considered an ideal size for an experienced owner/operator, providing the possibility to restructure the hotel’s operations to increase net operating income (NOI) flow-through. Over the past three years, the hotel registered an average gross operating profit (GOP) of less than 30.0%. However, similar economy-branded, limited-service hotels typically achieve a stabilized GOP margin between 45.0% and 50.0%.
Revenue History and Value-Add Potential
The hotel has reported a stable revenue average of approximately $1,650,000 annually over the last three years, reflecting steady market demand. After completing the change-of-ownership property improvement plan (PIP), the investor will have a newly renovated product and the opportunity to increase room rates to outperform other hotels in the competitive set.
Strategic Location and Replacement Cost
The property’s strategic location within the TMC neighborhood, adjacency to NRG Park, and price well below the replacement cost at $121,000 per key make it an attractive investment opportunity. To construct a similar limited-service hotel asset with comparable amenities, the estimated all-in investment would be a minimum of $150,000 per key.
Inquire at HVS.
