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Home2 Suites by Hilton Midland – Image Credit HVS
The Home2 Suites by Hilton in Midland, Texas, is up for sale, presenting a significant investment opportunity due to its strategic location and strong financial performance.
The Home2 Suites by Hilton in Midland, Texas, has been listed for sale. The hotel is located off US-250 and strategically positioned near major corporate offices and leisure destinations. This 93-room property benefits from a diverse clientele, including corporate and leisure travelers, due to its proximity to key locations such as Chevron Campus, Oxy Permian, and the Scharbauer Sports Complex.
Investment Highlights
The Home2 Suites is an institutionally owned and managed asset with robust operating performance. Between 2021 and 2024, the hotel achieved an average Net Operating Income (NOI) margin of 34%, indicating consistent and reliable cash flow. The property is offered unencumbered by management, allowing potential buyers to explore value-add opportunities through strategic market repositioning and operational enhancements.
Revenue Growth
The hotel has experienced a positive revenue trend, with a 10% increase in Room Revenue and Revenue Per Available Room (RevPAR) in 2024 compared to 2023. This upward momentum has continued into 2025, with a 14% year-over-year growth in Room Revenue through April. Following a change of ownership and property improvement plan (PIP), the hotel can capture a larger market share by leveraging sustained demand from corporate, group, and leisure segments.
Strategic Location
The hotel’s location offers convenient access to Midland’s key oil and gas operations, including those of major companies like Chevron and Schlumberger. Additionally, it is close to leisure and event venues such as the Wagner Noël Performing Arts Center and Midland Park Mall. Downtown Midland is just six miles away, enhancing the property’s accessibility and appeal to many visitors.
Economic Context
Midland is a dynamic city at the heart of the Permian Basin, a region renowned for its significant contributions to the oil and gas industry. The city plays a crucial role in the nation’s energy independence, with major corporations investing in innovative projects. Beyond energy, Midland’s economy is supported by diverse industries, including aerospace, healthcare, and manufacturing, making it a vital player in regional and national economic development.
The Permian Basin’s Role
The Permian Basin, spanning southwestern Texas and southeastern New Mexico, is a cornerstone of America’s energy sector. It accounts for nearly 40% of the nation’s oil and 15% of its natural gas production. Cities like Midland and Odessa are central to its operations, driving the U.S. towards energy independence and economic growth. As the country increasingly shifts towards renewable energy, Midland remains a hub of opportunity, underscoring the strategic importance of properties like the Home2 Suites.
The sale of the Home2 Suites by Hilton in Midland represents a compelling opportunity for investors looking to capitalize on the region’s economic vitality and the property’s strong financial performance.
Inquire at CBRE.
