9901 United Dr
Houston, TX 77036
Staybridge Suites Houston W-Westchase Area · Hospitality Property For Sale · 78,248 SF

HVS, as the sole and exclusive advisory firm to Ownership, is pleased to present the opportunity to acquire the 118-key Staybridge Suites Houston West – Westchase Area (herein referred to as the “Staybridge Suites” or simply as the “Hotel,” related to its operations, or the “Property,” related to the physical asset), an extended-stay asset located in the historically strong Westchase Houston submarket. The Hotel is currently underperforming and owner-operated; the Property is being sold unencumbered by management. A new investor will have the opportunity to realize the significant upside of acquiring a recently built, underperforming property, substantially below replacement cost. INVESTMENT HIGHLIGHTS Upside Potential for a Robust Operator - The Property currently suffers from a severe lack of managerial attention. There is great upside for a more “hands-on” operator to restructure the Hotel’s operations, establish yield-management strategies, and initiate cost-containment initiatives to maximize RevPAR penetration and NOI flow-through. - In the January 2019 trailing-twelve-month STR Trend Report, the Hotel ranked eighth out of eight competitive hotels in terms of occupancy and fifth in terms of average daily rate (ADR), registering the lowest overall RevPAR among its competitors. Given that the Hotel is the newest hotel in its set, as well as its strong brand affiliation and upscale, extended-stay product-type, it should transition to one of the market leaders in both metrics with a more prudent and hands-on operator. Well-Maintained, High-Quality Physical Product - Having recently opened in 2017, ownership has maintained the Property admirably, leaving it in excellent physical condition. A minor change-of-ownership PIP would be expected for the new buyer. Discount to Replacement Cost - This opportunity presents an investor the ability to acquire the Property at a price well below replacement cost. To construct a similar extended-stay asset with comparable amenities, the estimated all-in investment would be a minimum of $140,000 to $170,000 per key. Excellent Location Among Strong Corporate and Leisure Demand Generators - The Property is strategically located within the Westchase District, proximate to numerous dining, retail, and entertainment options around the Chinatown area, which is a positive attribute for both business and transient guests. More than 1,500 businesses reside in Westchase, and many are associated with the petroleum industry. The Westchase District measures approximately 4.32 square miles, with 16.3 million square feet of office space contained in 118 buildings.