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Holiday Inn Express & Suites Center, TX – Image Credit HVS
HVS Brokerage & Advisory is offering potential investors an exclusive chance to acquire the 60-key Holiday Inn Express & Suites Center in Texas. The hotel presents significant upside potential for a more hands-on investor and is currently available at a price well below its replacement cost.
HVS Brokerage & Advisory, renowned for its advisory services, has brought forth an opportunity to acquire the Holiday Inn Express & Suites Center in Texas. The hotel has 60 keys and is characterized as a limited-service asset. The acquisition opportunity presents significant upside potential for investors interested in renovating and owning a hotel property. The asset’s price is considerably below its replacement cost, making it an attractive option for potential buyers.
Since its acquisition in 2021, the hotel has been demonstrating impressive financials. The annual room revenue has averaged around $1,551,283, with 2024 ending at $1,563,812. Meanwhile, the gross operating profit (GOP) margin averaged at 33.5%, with net operating income (NOI) flow-through averaging 22.6%. The hotel is absentee-owned, indicating that a hands-on operator focusing on active revenue management and operational oversight could enhance performance and stimulate bottom-line growth.
In 2021/2022, approximately $1,300,000, or $15,000 per key, was spent to complete the Formula Blue property improvement plan (PIP). As a result of this investment, the incoming buyer is expected to face only minor PIP costs.
Based on the current pricing guide, the hotel asset can be acquired at $90,000 per key. This represents an attractive discount to replacement cost, suggesting a low basis and limited near-term capital exposure for the new investor. The rooms revenue multiplier (RRM) of 3.48x, based on the hotel’s 2024 rooms revenue of $1,560,000, further adds to the deal’s attractiveness.
The hotel is located in Center, Texas, which is a three-hour drive from Dallas and Houston. The energy and O&G industries support the region’s economy, with major operators such as Aethon Energy, BPX Operating Company, and XTO Energy in the area.
The hotel is one of three upper-midscale hotels in the Center, Texas, lodging market, the other two being the Hampton Inn & Suites and Best Western Plus. The hotel’s competitive positioning is strong given the limited brand saturation in the market and the consistent demand driven by the InterContinental Hotels Group (IHG) affiliation.
Upon completing the change-of-ownership PIP, a new investor can expect a long-term franchise license agreement with IHG. This enhances long-term brand security and benefits from the award-winning IHG® Rewards Club loyalty program, one of the largest in the hotel industry.
Inquire at HVS.
