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Holiday Inn Express & Suites Wharton – Image Credit IHG Hotels & Resorts
HVS Brokerage & Advisory announced the sale of the 62-key Holiday Inn Express & Suites Wharton, located at 10247 Highway 59, Wharton, Texas 77488.
Fortune Hospitality LLC, based in Austin, Texas, purchased the hotel asset, built in 2013, from DVD Enterprises Ltd., based in Sugar Land, Texas.
Vikas Desai, President of DVD Enterprises Ltd., commented, “As we continue to grow our portfolio through new development, it was time to sell this legacy asset. Despite some new hotel supply being built in the market and the hotel requiring a large PIP, the HVS team did an excellent job finding a buyer that closed without any re-trades.”
The property, located approximately 60 miles southwest of Houston along Interstate 59, benefits from its proximity to numerous demand generators including the Nan Ya Plastics manufacturing plant, Constellation’s Colorado Bend Energy Plant, Wharton County Junior College, and JM Eagle Co. (commercial piping manufacturer); moreover, leisure demand generators nearby include the historic Town Square, Plaza Theatre, Wharton County Historical Museum, and 20th Century Technology Museum, as well as the Morris Ranch & Carriage House. Special events also play a role during key weekends, such as the Wharton County Youth Fair, Wharton County Farmers’ Market, Snow Day on the Square, Monterey Square Wine Festival, and Party Under the Bridge. Additionally, Wharton is home to a section of the Texas Gulf Coast Antique Trail, as well as the county’s popular BBQ Trail, drawing visitors seeking Texas history, culture, and cuisine.
“We leveraged HVS’s extensive data to build a strong deal story to support the sale of the hotel. We had verified PIP/renovation data to support a PIP budget. Additionally, we used submarket revenue segmentation and business-mix data to create a credible pro forma for the hotel upon its reopening. We received offers from buyers across the country and selected a Texas-based group that had strong deal terms,” said Eric Guerrero, Senior Managing Director & Partner of HVS Brokerage & Advisory.
HVS Brokerage & Advisory team members Eric Guerrero, James Rebullida, Fadi Rawashdeh, and Kyle Peterek participated in this transaction.
