Hotel-Motel

OYO Townhouse Houston

12701 North Fwy, Houston, TX 77060

Listing Price: $2,250,000

Cap Rate
13.88%
Number of Rooms
104
RevPAR
$24
Gross SF
49,866
Price/Room
$21,635
RRM
2.45
Price/Gross SF
$45.12
Year Built
1996

Investment Overview

Marcus and Millichap's National Hospitality Group, as an exclusive representative of the seller, is pleased to present for sale to qualified investors the OYO Townhouse Houston. The hotels is priced at $2,250,000 or $21,635 price per room; this represents a 2.45 room revenue multiplier on projected stabilized room revenues.

Priced at an attractive 13.9 percent capitalization rate on stabilized year 1 revenue, this four-story, 104-room hotel presents a new owner the opening to acquire an opportunistic property within the Houston MSA. The hotels stabilized top-line revenues are projected to exceed $900,000 with a net operating income of $312,198 or approximately 33.6 percent of the gross revenue according to the stabilized financials. The expenses include provisions of four percent reserve for capital replacement.

The value-add property, originally constructed in 1996, is located at 12701 North Freeway and provides great visibility for the transient business community on Interstate 45 and those navigating from the George Bush Intercontinental Airport IAH (8.0 miles). The hotel is well equipped and offers a business center, outdoor pool, and conference services.

The region boasts significant upside potential with developments and renovations planned soon. In June 2014, the Houston City Council unanimously passed an agreement to demolish the existing Terminal D at George Bush Intercontinental Airport and construct a new modern facility with new gates to accommodate 15 large wide-body jets, including international arrivals. It is expected that the renovation works will last at least until 2021.

Furthermore, the 971-acre Pinto Business Park (2.2 miles) is 7,000,000 square-feet of built-to-suit light manufacturing and corporate campus space is a close neighbor to the subject property. The campus is home to the new Amazon warehouse construction which is an 855,000 square-foot facility and will generate additional room demand to the region.

Investment Highlights

  • Call for Offers Due: December 2, 2020; 5:00PM CST
  • SHORT SALE/ / DISTRESSED ASSET
  • 104-Room, Four-Story, Interior Corridor, Built in 1996
  • Priced Below Replacement Cost at $21,635 Per Key
  • Owners Apartment On Site
  • Conversion Opportunity Available: Wyndham, Choice, & Best Western Brands

Exclusively Listed By

Listing Price: $2,250,000

Cap Rate
13.88%
Number of Rooms
104
RevPAR
$24
Gross SF
49,866
Price/Room
$21,635
RRM
2.45
Price/Gross SF
$45.12
Year Built
1996

Investment Highlights

  • Call for Offers Due: December 2, 2020; 5:00PM CST
  • SHORT SALE/ / DISTRESSED ASSET
  • 104-Room, Four-Story, Interior Corridor, Built in 1996
  • Priced Below Replacement Cost at $21,635 Per Key
  • Owners Apartment On Site
  • Conversion Opportunity Available: Wyndham, Choice, & Best Western Brands

Investment Overview

Marcus and Millichap's National Hospitality Group, as an exclusive representative of the seller, is pleased to present for sale to qualified investors the OYO Townhouse Houston. The hotels is priced at $2,250,000 or $21,635 price per room; this represents a 2.45 room revenue multiplier on projected stabilized room revenues.

Priced at an attractive 13.9 percent capitalization rate on stabilized year 1 revenue, this four-story, 104-room hotel presents a new owner the opening to acquire an opportunistic property within the Houston MSA. The hotels stabilized top-line revenues are projected to exceed $900,000 with a net operating income of $312,198 or approximately 33.6 percent of the gross revenue according to the stabilized financials. The expenses include provisions of four percent reserve for capital replacement.

The value-add property, originally constructed in 1996, is located at 12701 North Freeway and provides great visibility for the transient business community on Interstate 45 and those navigating from the George Bush Intercontinental Airport IAH (8.0 miles). The hotel is well equipped and offers a business center, outdoor pool, and conference services.

The region boasts significant upside potential with developments and renovations planned soon. In June 2014, the Houston City Council unanimously passed an agreement to demolish the existing Terminal D at George Bush Intercontinental Airport and construct a new modern facility with new gates to accommodate 15 large wide-body jets, including international arrivals. It is expected that the renovation works will last at least until 2021.

Furthermore, the 971-acre Pinto Business Park (2.2 miles) is 7,000,000 square-feet of built-to-suit light manufacturing and corporate campus space is a close neighbor to the subject property. The campus is home to the new Amazon warehouse construction which is an 855,000 square-foot facility and will generate additional room demand to the region.

Exclusively Listed By

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