Investment Overview

As the exclusive representative of the seller, Marcus & Millichap's Hospitality Division is pleased to present for sale to qualified investors the Candlewood Suites Pearland, an IHG Hotel (‘Hotel’ or ‘Property’) located in Pearland, Texas. The IHG-branded hotel is offered at $6,600,000 or $86,843 per key. Seller financing is available for qualified buyers. The Candlewood Suites Pearland, an IHG Hotel, is a three-story hotel with 76 rooms: 10 renovated, 12 out of service, and 54 unrenovated. Located at 9015 Broadway Street, Pearland, the hotel is under two miles from Sam Houston Tollway and State Highway 288, which have a combined daily traffic of over 175,000 vehicles. Amenities include a fitness center, business center, lending locker, on-site laundry, a 24-hour market, and a gazebo with barbecue grills. The sale includes on-site FFE for further renovations. Pearland, Texas, part of the Houston metro area, has transformed from a small suburb into a rapidly growing city with a diverse economy. Its strategic location provides excellent connectivity via major highways: State Highway 288 to Houston (15 miles), Beltway 8 to various suburbs, Interstate 45 to Galveston (40 miles south), and State Highway 35 to southern Texas. Additionally, Pearland is approximately 200 miles from San Antonio, 160 miles from Austin, and 250 miles from Dallas. Its proximity to major attractions, including NRG Park, which draws 5.5 million visitors annually, and the Texas Medical Center, the world’s largest medical complex (13.7 miles away), further enhances its appeal. Pearland, Texas, is experiencing significant development, highlighted by the Levey Logistics Park, a 661,000-square-foot project starting in May 2024 and expected to be completed by mid-2025, featuring modern warehouses and direct access to Beltway 8. The Lower Kirby district, a 1,200-acre mixed-use area, further expands business opportunities. In healthcare, HCA Houston Healthcare Pearland, 3.7 miles away, and Kelsey-Seybold Clinic, 2.7 miles from the center, provide essential services and drive local accommodation demand. The city’s robust industrial base, including companies like Brask Inc., Kemlon Products & Development, SolvChem, Inc., Lonza Biologics, and Burlington Northern, attracts frequent travelers, boosting hotel demand. Additionally, retail centers such as Shadow Creek Ranch Town Center and Pearland Town Center, along with attractions like NASA Johnson Space Center and the Lone Star Flight Museum, further contribute to increased accommodation needs. Candlewood Suites, part of IHG, is well-suited for extended stays, offering full kitchens, large workspaces, and pet-friendly amenities. With IHG’s strong brand and loyalty program, Candlewood Suites presents a compelling investment opportunity in Pearland’s growing hospitality market. The hotel currently has 12 rooms offline, which has impacted Trailing 12 Months (TTM) room revenues. However, 10 rooms have been fully renovated to align with IHG's latest design standards. While room revenue declined over the past twelve months through June 2024, the upgraded rooms are expected to command higher rates, positioning the property for improved revenue performance and offering a compelling investment opportunity for potential buyers.