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Homewood Suites by Hilton Houston NW at Beltway 8 – Image Credit HVS
HVS Brokerage & Advisory, as the sole and exclusive advisory firm to ownership, presents the opportunity to acquire the 125-key Homewood Suites by Hilton Houston NW at Beltway 8, a highly coveted extended-stay hotel located in Northwest Houston. A new investor will have the rare opportunity to acquire a Hilton-branded, extended-stay hotel asset in the fourth largest city in the United States, with the ability to restructure the hotel’s operations to improve both top- and bottom-line cash flows
Highly Coveted, Newer Construction, 125-Key, Extended-Stay Hotel Asset
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The 125-key count and the 2018 construction are considered favorable characteristics for an investor. Post renovation, new ownership will be presented with a blank slate to ramp up operations and the ability to increase both revenues and NOI flow-through.
Operated by Third-Party Management Company
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The hotel is currently operated by a third-party management company, with a full staff in place. Great upside exists for new management to restructure the hotel’s operations and implement cost controls.
Market Leader and Increasing Demand Trend
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The hotel experienced a strong increase in operating performance in 2024, and continued growth is expected this year with the hotel anticipated to achieve over $4.3 million in rooms revenue and $1,590,000 (rounded) in NOI flow-through—the strongest performance recorded since opening.
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Since 2021, the hotel has outperformed and consistently dominated its competitive set, having registered an annual average RevPAR penetration index of 140.0%.
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Per the December 2024 STR report, the Houston Northwest Freeway hotel submarket experienced a 4.5% increase in demand and a 13.7% increase in revenue in 2024.
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Based upon HVS’s pro-forma projections, stabilized rooms revenue is anticipated to surpass $4.5 million, with an NOI flow-through of $1,650,000 (rounded).
Strong Extended-Stay Base Business
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The hotel’s dominant performance in 2024 was due primarily to a strong 16.2% increase in o