HOUSTON—While the oil markets have negatively affected RevPAR in some Houston submarkets, the Southwest Freeway submarket has continued to be a silver lining with respect to hotels. One such example is the Holiday Inn Houston Southwest-Sugar Land Area, a 207-room, full-service hotel located at 11160 Southwest Freeway.
The property went through a gut renovation in 2015 and features more than 6,800 square feet of flexible meeting/banquet facilities. The hotel recently sold to Prime Real Estate Group for an undisclosed sale amount. The seller was K&K Hotel Group.
Michael Yu, Rahul Bijlani, Eric Guerrero and Agrama Mannapperuma of CBRE Hotels in Houston represented the seller and buyer in the sales transaction. Marc Sallette and Olga Lepow with CBRE Hotels' debt and structured finance team arranged financing on behalf of the buyer.
Guerrero tells GlobeSt.com: “While the oil markets have certain submarkets in Houston on a negative RevPAR trend, the Southwest Freeway submarket has remained strong, which helped to complete this transaction. We've seen a strong amount of investor interest in Houston from out-of-state investors and currently have seven hotels assets on the market in the Houston area. Investors are seeing that now is a good time to enter the market, as they will be able to capitalize on the RevPAR growth as the market cycle reverses.”
Year-to-date, this sale represents the 17th south-central US hotel transaction for CBRE Hotels/Houston, which has 26 hotels exclusively listed for sale.
“Prime Real Estate group, a first-time hotel buyer from Canada, has several retail assets in Houston and was looking to diversify its portfolio,” Guerrero said. “They acquired this hotel because they were able to secure it at an attractive basis and it has excellent value-add potential with better management. Alberigo Hotel Management has been selected to manage the hotel.”
CBRE Hotels is a specialized advisory group within CBRE providing capital markets, consulting, investment sales, research and valuation services to companies in the hotel sector. It has more than 385 hospitality professionals in 60 international offices.
“The hotel's circumstances made finding a buyer and financing difficult,” Nupen Patel with K&K Hotel Group said. “CBRE received multiple offers on the deal and were able to help a first-time buyer secure a bridge loan and get the deal closed. They are my go-to when it comes to investment sales, financing and consulting.”
HOUSTON—While the oil markets have negatively affected RevPAR in some Houston submarkets, the Southwest Freeway submarket has continued to be a silver lining with respect to hotels. One such example is the Holiday Inn Houston Southwest-Sugar Land Area, a 207-room, full-service hotel located at 11160 Southwest Freeway.
The property went through a gut renovation in 2015 and features more than 6,800 square feet of flexible meeting/banquet facilities. The hotel recently sold to Prime Real Estate Group for an undisclosed sale amount. The seller was K&K Hotel Group.
Michael Yu, Rahul Bijlani, Eric Guerrero and Agrama Mannapperuma of CBRE Hotels in Houston represented the seller and buyer in the sales transaction. Marc Sallette and Olga Lepow with CBRE Hotels' debt and structured finance team arranged financing on behalf of the buyer.
Guerrero tells GlobeSt.com: “While the oil markets have certain submarkets in Houston on a negative RevPAR trend, the Southwest Freeway submarket has remained strong, which helped to complete this transaction. We've seen a strong amount of investor interest in Houston from out-of-state investors and currently have seven hotels assets on the market in the Houston area. Investors are seeing that now is a good time to enter the market, as they will be able to capitalize on the RevPAR growth as the market cycle reverses.”
Year-to-date, this sale represents the 17th south-central US hotel transaction for CBRE Hotels/Houston, which has 26 hotels exclusively listed for sale.
“Prime Real Estate group, a first-time hotel buyer from Canada, has several retail assets in Houston and was looking to diversify its portfolio,” Guerrero said. “They acquired this hotel because they were able to secure it at an attractive basis and it has excellent value-add potential with better management. Alberigo Hotel Management has been selected to manage the hotel.”
CBRE Hotels is a specialized advisory group within CBRE providing capital markets, consulting, investment sales, research and valuation services to companies in the hotel sector. It has more than 385 hospitality professionals in 60 international offices.
“The hotel's circumstances made finding a buyer and financing difficult,” Nupen Patel with K&K Hotel Group said. “CBRE received multiple offers on the deal and were able to help a first-time buyer secure a bridge loan and get the deal closed. They are my go-to when it comes to investment sales, financing and consulting.”
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Lisa Brown
Lisa Brown is an editor for the south and west regions of GlobeSt.com. She has 25-plus years of real estate experience, with a regional PR role at Grubb & Ellis and a national communications position at MMI. Brown also spent 10 years as executive director at NAIOP San Francisco Bay Area chapter, where she led the organization to achieving its first national award honors and recognition on Capitol Hill. She has written extensively on commercial real estate topics and edited numerous pieces on the subject.
