Prime Hospitality Acquisition: Turn-Key Holiday Inn Express & Suites | Houston, TX
100 Keys | 2020 Construction | 9.16% Current CAP Rate | PIP Completed
RAD Commercial Realty is proud to present an exceptional investment opportunity in the heart of Houston’s dynamic hospitality market. This 2020-built, 100-key Holiday Inn represents the pinnacle of modern limited-service hospitality assets. Strategically situated in the high-growth Northwest Houston corridor, this property is being offered as a fully profitable, turn-key operation that combines brand-new construction quality with a proven, data-backed history of financial performance.
Asset Overview & Infrastructure
This institutional-grade asset spans 89,205 square feet across a sleek, four-story structure. Positioned on a generous 2.1-acre parcel, the property is designed for high-volume corporate and leisure travel, featuring:
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Modern Construction: Built in 2020, the facility meets the latest energy and structural standards, significantly reducing long-term capital expenditure risks.
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Property Improvement Plan (PIP): Investors can enjoy peace of mind as all PIPs are 100% completed, ensuring the asset is fully compliant with IHG brand standards for years to come without the need for immediate renovation capital.
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Parking & Logistics: The site includes 89 dedicated parking spaces, providing an ample ratio for both guests and staff in a high-demand urban environment.
Market Dominance & Financial Performance
This Holiday Inn isn't just a participant in the Houston market—it is a leader. The property demonstrates superior operational efficiency and a highly attractive yield profile:
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Yield Profile: The asset is currently operating at a robust 9.16% CAP Rate, with a clear pathway to 10.36% upon stabilization.
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Market Penetration: Boasting a RevPAR Index of 105.6%, the hotel consistently outperforms its competitive set, capturing a larger share of the market’s revenue per available room.
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Pricing Advantage: At an asking price of $8,800,000, the property is valued at approximately $88,000 per key (and just $99 per square foot), representing a significant discount compared to current replacement costs for new builds in the Houston metro area.
Strategic Location: Northwest Houston Growth Corridor
The property’s location is a primary driver of its consistent occupancy and high-yield profile:
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Corporate Demand: Northwest Houston is a hub for the energy, technology, and logistics sectors, providing a steady "Monday through Thursday" corporate demand base.
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Connectivity: Immediate access to major Houston thoroughfares ensures a seamless experience for travelers navigating to the Energy Corridor, George Bush Intercontinental Airport (IAH), and Downtown Houston.
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Commercial Synergy: The hotel is surrounded by a dense mix of retail, professional offices, and dining, further enhancing its appeal as a top-tier lodging destination.
Investment Summary
| Metric |
Property Detail |
| Total Keys / Units |
100 |
| Current CAP Rate |
9.16% |
| Pro-Forma CAP Rate |
10.36% (Stabilized) |
| RevPAR Index |
105.6% |
| Building Size |
89,205 SF |
| Year Built |
2020 |
| Total Land Area |
2.1 Acres |
| Broker Co-Op |
Yes |
Confidential Inquiries & Underwriting
For a complete financial package, including recent P&L statements, STR reports, and detailed underwriting, please register at www.radcre.com or contact Majid directly at majid@radcre.com or 818-334-2111.
Advisory & Financing: To explore specialized hospitality debt solutions or SBA financing options for this acquisition, RAD Capital Group offers a full suite of loan services tailored for the hotel sector. Visit www.radcapgroup.com for more details.