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Holiday Inn Express & Suites Cleveland – Image Credit HVS
The Holiday Inn Express & Suites in Cleveland, Texas, is now for sale at a reduced price of $6,900,000, offering a significant investment opportunity in a growing market.
HVS Brokerage & Advisory is exclusively advising on the sale of the Holiday Inn Express & Suites Cleveland, a 68-key hotel located approximately 45 miles north of Downtown Houston. This property is strategically positioned along Interstate 69, serving as a crucial link between Houston and several East Texas cities. The hotel, now priced at $101,470 per key, presents a compelling opportunity for potential buyers due to its recent price reduction and significant investment in renovations.
Financial Performance and Market Position
The hotel has demonstrated robust financial performance with a gross operating profit of 40.5% as per the 2024 profit-and-loss statement. Despite this strong performance, there is room for improvement, with potential increases in revenue and net operating income (NOI) through strategic management changes and cost control measures. The property has consistently outperformed its competitive set, with a notable average RevPAR penetration index of 139.1% through the end of 2024.
Recent Renovations and Future Projections
From 2023 to 2024, the hotel underwent a comprehensive $2.1 million renovation adopting the “Formula Blue 2.0” design scheme. This investment has not only enhanced the property’s appeal but also positioned it for a resilient performance following the renovation. The renovations have led to a significant rebound in rooms revenue, which topped $2 million in 2024, marking a 27.3% increase from the previous year. Projections suggest that stabilized rooms revenue could exceed $2.2 million, with an NOI of approximately $700,000.
Strategic Location and Additional Benefits
The hotel benefits from its proximity to several major highways and commercial hubs, enhancing its visibility and accessibility. The nearby BNSF Railway’s development of a 1,200-acre industrial and business park is expected to further increase demand for lodging in the area. Additionally, the property is unencumbered by management contracts, offering new owners the flexibility to optimize operations.
Investment Potential
This sale presents an attractive investment opportunity, especially considering the property’s recent upgrades and its strategic location within a dynamic economic corridor. The hotel is being offered at a price significantly below replacement cost, and the potential for a new 15-year franchise license with IHG enhances its appeal. Interested investors are encouraged to contact James Rebullida for more details on this promising investment opportunity.
Inquire at HVS.
