• Under Construction TownePlace Suites by Marriott Houston Tomball    

HVS Brokerage & Advisory, as the sole and exclusive advisory firm to ownership, presents the opportunity to acquire the 89-key TownePlace Suites by Marriott Tomball, an under-construction, extended-stay, limited-service hotel asset in Tomball, Texas, which is part of the Houston–The Woodlands–Sugar Land MSA. The property is expected to open August 2024 and will be delivered to new ownership turn-key or upon issuance of the Certificate of Occupancy (CO).

Newly Constructed, High-Quality, Extended-Stay Hotel Asset

  • With a scheduled opening date of August 2024, the property will be in excellent physical condition, thus allowing an investor to acquire a Marriott-branded asset without concerns of a change-of-ownership property improvement plan (PIP).

  • As the newest lodging facility in the competitive submarket, the property will be superior to what is currently available, and the hotel will be well suited to achieve its competitive market positioning and capture high-rated transient and commercial demand.

  • The extended-stay, all-suite design promotes guest independence and helps drive occupancy, which yields to lower housekeeping costs and higher profits. This business model benefits an investor to operate an asset that yields high GOP margins and NOI flow-through, resulting in some of the highest profit margins in the industry.

Strong Extended-Stay Market Fundamentals and Increasing Performance

  • Per the March 2024 STR Trend Report, the competitive submarket, consisting of four hotels ranging from midscale to upper-midscale limited-service and extended-stay assets, achieved occupancy and average daily rate (ADR) levels of 75.5% and $112.28, respectively, resulting in $84.77 RevPAR for the trailing-twelve-month (TTM) period ending March 2024.

  • Per the 2023 year-end occupancy tax receipts, the two other extended-stay hotels in Tomball performed strongly.

    • Residence Inn by Marriott: 103 keys, $95 RevPAR, leading to $3.5 million in rooms revenue (a 21.4% increase compared to the previous year)

    • Staybridge Suites, an IHG Hotel: 94 keys, $88 RevPAR, leading to $3.0 million in rooms revenue (a 27.0% increase compared to the previous year)

  • Based on HVS pro-forma projections, stabilized rooms revenue is anticipated to exceed $3.1 million, with an NOI flow-through of over $1,200,000 (rounded), resulting in a RevPAR of over $95.

Excellent Location Among Numerous Demand Generators

  • The property benefits from its location near the intersection of State Highway 99 (Grand Parkway) and FM 2920/Waller-Tomball Road, a newly developed exit with several newer dining, retail, and entertainment options.

  • Given the nearby expansion efforts occurring around the FM 2920/Waller-Tomball Road and Kuykendahl Road intersection in Tomball, now is an ideal time to acquire an extended-stay hotel property in the area. The construction of new developments will generate immediate demand from construction crews, while the opening of new businesses and attractions will ensure sustained long-term demand.

  • Notable local demand generators include the Tomball Town Center, Tomball Regional Medical Center, Lateral Technology Corporation, SLR International Corporation, Enhanced Energy Partners Corporation, Crow Corporation, Baker Hughes, VEOLIA, Grimes Industrial, and Lonestar College, among others.

  • Tomball is home to several popular wedding venues, including Boxwood Manor, Ella’s Garden, Sandlewood Manor, and The Estates at Pecan Park.

  • Additional weekend demand is generated by travelers passing through en route to other destinations, people visiting friends or relatives, and youth sporting groups.

Transformative Developments Shaping Tomball’s Future

  • NewQuest is currently developing The Grand at 249, a $90-million, 404,256-square-foot retail center at the intersection of Grand Parkway and State Highway 249 in Tomball. Once completed in late 2025, The Grand at 249 will represent the largest concentration of retail in the Houston Northwest submarket. According to the company, 96.0% of the development is already leased or under negotiation.

  • Lovett Industrial is currently developing a three-phased, 240-acre business park at the intersection of Grand Parkway and State Highway 249. The first phase has been completed, featuring 1.9 million square feet of industrial space, and is anchored by the recently opened Macy’s distribution center, which encompasses more than 908,000 square feet. The second phase is currently in the design stage.

  • Fred Stockton, owner of Stockton Inc. and the chair of the Harris County Fair & Rodeo Board of Directors, purchased 165 acres of land near Grand Parkway and Telge Road to be the new home for the Harris County Fair & Rodeo. The first event is scheduled for October 2024. Plans also call for the grounds to double as event space for the community.

  • In June 2023, White Unicorn Investments acquired 77 acres of land at the intersection of Grand Parkway and Cypress Rosehill Road. According to the company, plans call for the development of retail, multifamily residential, and industrial space. Construction is expected to begin in the next 18 to 24 months.

World-Class Marriott Brand Affiliation

  • Upon acquisition and approval, an investor can expect a new, 20-year license agreement with Marriott.

  • The award-winning Marriott loyalty program, known as Bonvoy, is one of the largest in the hotel industry, offering members access to more than 6,700 hotels across 29 brands. Serving nearly 100 million enrolled members worldwide, it is an effective tool for driving customers to Marriott hotels and creating brand loyalty. A new investor would benefit from the proprietary Bonvoy program, as well as the multi-brand marketing program.

  • TownePlace Suites by Marriott represents one of Marriott’s extended-stay brands, targeted at business travelers who want to feel at home and stay productive. Owning TownePlace Suites by Marriott hotels offers compelling economics and strong RevPAR performance.

Management Availability

  • The hotel asset is being offered free and clear of any management encumbrances, providing an investor with the flexibility to install their preferred management company or self-operate, if approved.

For inquiries please visit here to execute the Confidentiality Agreement.