Hilton Backyard Inn Houston Cypress Station in Houston, TX Listed for Sale

HVS Brokerage & Advisory, as the only and unique advisory agency to possession, presents the chance to accumulate the 118-key Hilton Backyard Inn Houston Cypress Station, a select-service lodge asset positioned within the North Houston submarket. This providing presents a superb value-add alternative for an investor to enter the Hilton model household at a value nicely under substitute price.

Operational Upside for a New Operator

• Based mostly on the trailing-twelve-month (TTM) monetary assertion ending in July 2024, the lodge achieved 27.0% (rounded) in gross working revenue (GOP) and a internet working earnings (NOI) flow-through of seven.9%. Thus, that is an ideally suited alternative for a extra aggressive operator to enhance operations and improve NOI flow-through.

• Based mostly on a choice of working statements from related classic Hilton Backyard Inn inns, the lodge ought to obtain a stabilized GOP margin between 42.0% and 48.0%. We see a number of alternatives for enchancment that would result in a collective lower in rooms expense, particularly within the payroll division.

• Per the August 2024 month-to-month STR report, the lodge ranked final (out of six) and third amongst its rivals in phrases of occupancy and common every day charge (ADR) for the TTM interval ending in July 2024, registering a 80.9% RevPAR penetration index. This presents upside for a extra prudent operator to recapture demand from company vacationers and transition the lodge into turning into a market chief.

• If the lodge have been to seize its justifiable share of market demand, at a RevPAR index of 100.0%, it will be producing in extra of $2.6 million in rooms income.

• Based mostly upon HVS’s pro-forma projections, stabilized rooms income in 2026/27 (12 months 2) is anticipated to be in extra of $2.5 million, with an NOI flow-through of $800,000 (rounded).

Rising Topline Income Development

• The lodge’s rooms income for the TTM interval ending in August 2024 equated to $2,250,000 (rounded)—a 16.1% improve in comparison with final 12 months.

• Per the August 2024 month-to-month STR report, year-to-date demand for the lodge has elevated 11.6%, in comparison with the identical interval final 12 months.

Excessive-High quality Bodily Product Priced Beneath Alternative Value at $85,000 per Key

• This alternative presents an investor the flexibility to accumulate the property at a value nicely under substitute price at 85,000 per key.

• The lodge opened in 2016, and possession has maintained the bodily asset nicely.

• To assemble the same limited-service lodge asset with comparable facilities, the estimated all-in funding can be a minimal of $150,000 to $180,000 per key.

Change-of-Onwership PIP 

• The change-of-ownership property enchancment plan (PIP) report will be discovered within the digital deal room (VDR).

Extremely Sought-After Hilton Franchise

• An investor can count on a brand new, long-term, 15-year franchise settlement with Hilton.

• The Hilton Backyard Inn franchise is an industry-proven model with a powerful popularity amongst company vacationers. Per Hilton, the model is ready to drive a better ADR than its rivals on account of its main meals and beverage choices and trendy facilities, which lead to improved profitability.

• An investor will profit from working a franchise of one of many world’s main international hospitality corporations. Each Hilton-branded property advantages from a singular system of modern options and superior applied sciences, generally known as the Hilton Efficiency Benefit, which delivers modern help to persistently drive earnings and efficiencies. It’s a highly effective useful resource for homeowners and operators, unequalled within the {industry}. Hilton Honors™ is an award-winning visitor loyalty program. Its roughly 190 million members account for greater than 50.0% of all room nights globally for Hilton-branded inns. Particularly for the Hilton Backyard Inn model, 65.0% of visitors are Hilton Honors members.

Enticing Vendor Financing Accessible 

A vendor financing bundle with enticing phrases is obtainable for a certified purchaser. Please see the phrases under and attain out to the deal group for extra particulars. 

• Mortgage-to-Worth (LTV): 65.0%
• Mounted Curiosity Fee: 8.0%
• Funds: Curiosity solely
• Time period: 3 years
• Private Assure: None, non-recourse mortgage

Glorious Location Alongside I-45 Amongst Demand Mills

• The property is positioned close to a number of company demand turbines within the space, together with the rising Metropolis Place (previously generally known as Springwoods Village) mixed-use improvement, Exxon, HP, Baker Hughes, Halliburton, HCA Houston Healthcare Northwest, CEVA Logistics, Richey Enterprise Park, Oil Middle Enterprise Park, Schlumberger, ALL STOP! Survival & Security Coaching, Vallourec Tube-Alloy Houston, Gulf State Toyota, and MiTek.

• Close by leisure sights within the space embody The Woodlands Mall, Champions Golf Membership, The Woodlands Market Road, Hurricane Harbor Splashtown, Sam Houston Raceway, Mercer Arboretum & Botanic Gardens, and Ashton Gardens North Houston (marriage ceremony venue).

• The property is additionally positioned ten miles from George Bush Intercontinental Airport (IAH), which is handy for each enterprise and leisure vacationers.

Administration Availability

For inquiries please go to right here to execute the Confidentiality Settlement.