-
Staybridge Suites Houston I-10 West-Beltway 8 – Image Credit HVS
Staybridge Suites Houston I-10 West-Beltway 8 Offers Investment Opportunity with Upside Potential
HVS Brokerage & Advisory is currently offering an opportunity to acquire the 82-key Staybridge Suites Houston I-10 West-Beltway 8. This extended-stay hotel is located in the Katy Freeway West submarket, known for its strong historical performance. The property boasts excellent visibility along the Sam Houston Tollway, strategically positioned near major business and leisure demand generators.
Financial Performance and Potential
The hotel has demonstrated stable financial performance with a three-year average room revenue of approximately $2 million. The trailing twelve-month data through April 2025 shows a rooms revenue of $2.25 million. However, the hotel is underperforming compared to its competitors in occupancy and revenue per available room (RevPAR). There is significant potential for revenue growth post-renovation, with projected stabilized rooms revenue exceeding $2.4 million.
Operational Flexibility and Market Position
The existing franchise agreement expires this year, providing a new owner with the flexibility to rebrand or convert the property. The Staybridge Suites brand is well-regarded in the extended-stay market segment, known for its resilience during economic downturns and lower operational costs due to its all-suite design. This presents a valuable opportunity for an experienced operator to enhance operational efficiencies and capitalize on the property’s strong market position.
Location and Demand Generators
The property’s location offers excellent visibility and access to significant corporate and leisure demand generators. Nearby businesses include major corporations such as GE Oil & Gas, BP Energy, and Shell Oil Company. Leisure attractions such as Baseball USA Park and Memorial City Mall also contribute to the hotel’s appeal. Recent developments in the area, such as the expansion of Group 1 Automotive’s headquarters and the inauguration of Schneider Electric’s Energy Innovation Center, signal ongoing economic growth and expansion in the region.
Investment Considerations
The hotel is unencumbered by management, allowing for immediate operational changes or rebranding. Post-renovation, the potential for a new 15-year license agreement with IHG could further enhance the property’s appeal to long-term investors. The upcoming expiration of the franchise agreement and the completion of a brand-mandated property improvement plan (PIP) provide a blank slate for implementing new revenue management strategies.
Inquire at HVS.
