Two Texas hotels—the 88-room TownePlace Suites by Marriott in McKinney and the 82-key Hampton Inn & Suites Houston—have changed hands. HVS Brokerage & Advisory marketed and sold the properties through the Ten-X auction platform and broadcast to a nationwide audience.
The TownePlace Suites, built in 2016, was purchased by Jain Hotels Management, based in Tulsa, Okla., from Pride Management, based in Beaumont, Texas. The extended-stay hotel property yielded a purchase price that was 107 percent of the reserve.
Extended-stay hotels have performed significantly better than other hotel types during the COVID-19 pandemic. At the time of closing, the TownePlace Suites in McKinney’s occupancy was over 70 percent. The buyer was attracted to the opportunity to acquire an underperforming, Marriott-branded, extended-stay hotel at below replacement cost and the expected benefit from the anticipated economic rebound in the aftermath of the worst period of the pandemic, according to HVS.
Hampton Inn & Suites Houston, meanwhile, yielded a purchase price that was 138 percent of the reserve. The limited-service hotel property, built in 1995, was purchased by Los Angeles-based Contender One from Sarjudash, based in Houston. The new owner plans to repurpose the building in the near future, rather than continuing with its Hilton franchise.