Home2 Suites by Hilton Waco-Bellmead Development Project

HVS Brokerage & Advisory presents an attractive investment opportunity to acquire and develop a 1.86-acre plot in Bellmead, Texas. The plot is fully entitled for the construction of a 100-key Home2 Suites by Hilton.

The development project is poised to leverage the strong reputation of the Home2 Suites by Hilton brand, which is sought after by both private and institutional investors. The brand’s resilience in economic downturns and fast growth in the industry further enhance the project’s appeal.

The proposed hotel will cater to the extended-stay segment with an all-suite design that promotes guest independence, resulting in lower housekeeping costs and higher profits. It will also benefit from the Hilton Performance Advantage, a system of innovative solutions and advanced technologies that drive profit and efficiency, making it a valuable resource for owners and operators.

The project will also leverage the Hilton Honors™ guest loyalty program, with its 190 million members accounting for more than 50% of all room nights globally for Hilton-branded hotels. The lack of newer, premium-branded, extended-stay hotels in the local submarket and strong market fundamentals make this a compelling investment opportunity.

The property’s strategic location near Interstate 35 (I-35), north of Loop 340, brings it close to several commercial demand generators, including Mars Wrigley, L3Harris Technologies, TYMCO, Neighborly Brands, Texas State Technical College, Waco Regional Airport, Cargill, and Waco Convention Center. Leisure attractions in the vicinity and various dining options add to its appeal.

The Waco market has seen rapid expansion, with 37 major investment announcements in the last four years resulting in over $3.3 billion in new capital investments across the greater Waco MSA. This economic growth, accompanied by Texas State Technical College’s $72-million campus expansion and Baylor University’s presence, bodes well for the proposed development.

Once developed, the hotel will be superior to its competitors in terms of quality and guestroom product, given the in-room kitchenettes. Based on HVS pro-forma projections, stabilized room revenue is anticipated to exceed $3.9 million, with a net operating income (NOI) flow-through of over $1,495,000, resulting in a RevPAR of over $107.

Inquire at HVS.