Investment Overview

As the exclusive representative of the seller, Marcus & Millichap's Hospitality Division is pleased to present for sale to qualified investors the Holiday Inn Express & Suites Waller – Prairie View, an IHG Hotel (‘Hotel’ or ‘Property’) located in Waller, Texas. The IHG-branded hotel is offered at $5,950,000 or $79,333 per key. The Holiday Inn Express & Suites Waller – Prairie View is a three-story hotel with 75 rooms, located at 31380 Farm to Market 2920 in Waller, Texas. The hotel is accessible from US 290 and is less than 45 miles from Houston, Texas. Various common area amenities at the property include an outdoor swimming pool, fitness center, business center, and 700 square feet of meeting space. Built in 2009, the property completed the Formula Blue 2.0 PIP in 2021 for public areas and some bedrooms. Additional upside exists for a new owner/operator to complete the Formula Blue 2.0 PIP for the remaining guest rooms. Additionally, a new owner/operator may benefit from incorporating a marketing team for a revenue management strategy and cost-reduction initiatives at the property level. Waller, Texas, is situated within the Houston Metropolitan Statistical Area (MSA). The MSA is a major economic and cultural hub with a population of over 7 million. Houston, the 4th largest city in the U.S., features a robust economy with a GDP of $478 billion, making it the 6th largest metro economy in the country. The region is supported by a well-developed transportation network, including major highways, METRO’s comprehensive public transit system, and two major airports—George Bush Intercontinental Airport (46.3 mi) and Hobby Airport (52.5 mi), which handles over 5 million passengers each year. Major economic sectors include energy, engineering, and healthcare. Prairie View A&M University is less than seven miles from the Holiday Inn Express & Suites Waller – Prairie View. The university offers over 70-degree programs across eight colleges, including agriculture, engineering, natural sciences, business, the arts, nursing, and criminal justice. With more than 9,000 diverse students, PVAMU hosts numerous events, such as graduations, conferences, and sporting events, driving demand for nearby hotel accommodations. The hotel is situated near prominent Houston landmarks, including The Galleria (38.8 miles) and Houston Premium Outlets (11.1 miles). It is also close to key business hubs such as Daikin Texas Technology Park, just 5.1 miles away. The Daikin facility spans approximately 4 million square feet and employs over 5,000 people, producing products for Daikin Goodman Air Conditioning and Heating as well as Amana Heating and Air Conditioning. For leisure, guests can visit the nearby Legendary Oaks Golf Course (13.4 miles) or enjoy a nostalgic experience at the Showboat Drive-In Theatre (9.0 miles). Holiday Inn Express is the industry-leading upper midscale brand that has enjoyed incredible growth since its launch just over 30 years ago. IHG’s largest and fastest-growing brand, it has more than 3,000 hotels across 50 countries, with a pipeline representing over 25% of the current system size, making it the first choice for millions of guests seeking high-quality stays at a great price while delivering consistently strong commercial performance for thousands of owners. The hotel’s RevPAR penetration index of 117% for the twelve months ending in August 2024, and a sustained index of 120% over the next five years, offer significant advantages for buyers, including heightened room revenue, improved cash flow, and competitive market positioning. The hotel achieved an impressive net operating income margin of 34% for the twelve months ending August 2024, indicating significant advantages for buyers, such as excess capital for renovations, operational efficiency, and robust investment potential.