CBRE Hotels, as sole and exclusive agent for the owner, has been retained to offer for sale the fee-simple interest in the 305-room Embassy Suites by Hilton Dallas DFW Airport South. The Hotel is situated off West Airport Freeway and is three miles from Dallas Fort Worth International Airport, the world's second busiest airport by passengers. The Property is also in proximity to a high concentration of both corporate and leisure destinations, including Drive Nation Sports, Six Flags Over Texas, Grand Prairie Stadium, AT&T Stadium and Globe Life Field. This offering represents a unique opportunity to acquire an ideally-located and well-constructed full-service hotel in a vibrant and fast-growing Dallas submarket, available unencumbered of debt and management.
Investment Highlights
- Partially Renovated Embassy Suites with Significant Upside Potential - The Embassy Suites achieved a 115.2 RevPAR index and ranked 1 of 6 in its comp set at the end of 2019. For the TTM period ending November 2023, the Hotel only posted a 99.9 RevPAR index, ranking 4 of 6 in its comp set. Since 2017, the current ownership group has undertaken substantial capital improvements at the Hotel, costing approximately $7,300,000 or $23,900 per unit. Upon the completion of the ongoing renovations initiated by the current owner, the Embassy Suites is only expected to improve its market share and operating performance in future years.
- Premium-Branded, Full-Service Hotel With Excellent Amenities - The Embassy Suites, constructed in 1985, features 305 suites equipped with various amenities. In addition, the Hotel offers a multitude of amenities on the property, featuring an indoor pool, a business center, a fitness center, a full-service restaurant, airport shuttle, and 8,258 square feet of total event space.âââââââ
- Unrivaled Airport Location - Positioned near the convergence of State Highway 183 and State Highway 161, the 305-room Embassy Suites is just three miles from the Dallas Fort Worth International Airport, the second busiest airport in the world by passengers. The Airport has recently annouced the $4.8 billion in pre-approved capital investments, which will include the construction of Terminal F, the major reimagining of Terminal C, and other significant modernization projects. Additionally, the Hotel benefits from close proximity to significant hotel demand generators, downtown’s diverse array of restaurants and vibrant nightlife.
- Dynamic and Growing Economy - DFW's central location, affordable living costs, favorable business environment, world-class cultural institutions, advanced healthcare facilities, universities, and robust transportation make it an attractive relocation choice for both corporations and job seekers.
- Substantial Operating Efficiency Upside - The Hotel will be delivered unencumbered of management. Because of the current operator’s national scale and significant corporate overhead allocation, this project presents significant potential for a more hands-on operator to significantly lower the hotel’s expenses through improvements in housekeeping labor utilization and reduction in corporate allocated expenses.
- Fee-Simple And Well-Below Replacement Cost - The Property presents a unique opportunity to acquire a high-quality branded full-service hotel at a significant discount compared to constructing a similar one.
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