160 Wagon Point DrHouston, TX 77090

For Sale
Call for price
118-key hotel, strong upside potential, seller financing.

Overview

Added:
Dec 11, 2024
Days on market:
126
This exceptional investment opportunity presents the chance to acquire the 118-key Hilton Garden Inn Houston Cypress Station, a four-story, 66,495-square-foot hotel built in 2016 and situated on a 2.68-acre lot in Houston, Texas (zip code 77090). The property boasts a prime location near major corporate employers including Exxon, HP, and Baker Hughes, as well as leisure attractions like The Woodlands Mall and George Bush Intercontinental Airport (IAH), ensuring consistent demand. The hotel's trailing twelve-month (TTM) rooms revenue shows a 16.1% year-over-year increase to approximately $2,250,000, indicating a positive upward trend. However, the property's current RevPAR penetration index of 80.9% suggests significant operational upside for a new operator, with projections indicating potential for over $2.5 million in stabilized rooms revenue by 2026/27. A detailed change-of-ownership property improvement plan (PIP) is available. The property is offered free and clear of management encumbrances, allowing for flexible operational strategies. This represents a compelling value-add opportunity, priced well below replacement cost at $85,000 per key (estimated replacement cost: $150,000-$180,000 per key). A highly attractive seller financing package is available, featuring a 65% loan-to-value ratio, an 8% fixed interest rate, interest-only payments over a three-year term, and no personal guarantee. The sale includes a new, long-term 15-year franchise agreement with Hilton, leveraging the brand's strong reputation and the Hilton Performance Advantage system.

Highlights

  • Significant operational upside for a new operator; current GOP margin is 27%, but comparable hotels achieve 42-48%; RevPAR penetration index is 80.9%, indicating room for improvement.
  • Strong revenue growth; TTM rooms revenue is $2.25 million, a 16.1% year-over-year increase; year-to-date demand is up 11.6%.
  • High-quality asset priced below replacement cost; $85,000 per key, compared to estimated replacement cost of $150,000-$180,000 per key; built in 2016 and well-maintained.
  • Available change-of-ownership PIP; details in the virtual deal room (VDR).
  • Highly desirable Hilton franchise; 15-year franchise agreement; benefits from Hilton Performance Advantage and Hilton Honors loyalty program.
  • Attractive seller financing; 65% LTV, 8% fixed interest rate, interest-only payments over 3 years, no personal guarantee.

Property Details for 160 Wagon Point Dr

Property type
Hospitality properties, Hotels
Square Feet
66,495 SF
Year Built
2016
Buildings
1
Stories
4
Lot Size (sq. ft)
116,741 SF

Location Insight

City
Houston
County
Harris
State
Texas
Latitude
30.022841939131
Longitude
-95.431720699008
160 Wagon Point Dr, Houston, Texas

FAQs

What type of property is this?
Hospitality property - 118-key hotel, strong upside potential, seller financing.
Where is the hospitality property located?
The property is located at 160 Wagon Point Dr Houston, TX.
What are key features of this property?
This property features: Significant operational upside for a new operator; current GOP margin is 27%, but comparable hotels achieve 42-48%; RevPAR penetration index is 80.9%, indicating room for improvement.; Strong revenue growth; TTM rooms revenue is $2.25 million, a 16.1% year-over-year increase; year-to-date demand is up 11.6%.; High-quality asset priced below replacement cost; $85,000 per key, compared to estimated replacement cost of $150,000-$180,000 per key; built in 2016 and well-maintained.
How can I contact the broker?
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160 Wagon Point Dr
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