Houston Hotel Deal Compare

2026-04-29 · THM acquisitions desk

5 active deals on the desk. 4 are CBRE listings (Michael Yu / Rahul Bijlani / Manasvini Sridhar, forwarded by Tyler Bean of JTB as co-broker). DoubleTree Galleria is an Alchemy listing (Joe Cuomo). Underwriting based on signed-CA datarooms; DT Galleria OM still listed Pending so financials are from Amit Mehta forward.

At-a-glance comparison

Property	Asking	Keys	$/Key	Cap	RevPAR T12	RGI	NOI Margin	Value	Upside
DoubleTree Galleria 5353 Westheimer · 1981/2016 · H150	$30M	476	$63K $97K all-in (broker PIP) $80K all-in (RS PIP)	11.8% 7.7% all-in (broker) 9.3% all-in (RS)	$89.68	98	18.5%	8	9
Courtyard Houston Kingwood 2014 · reno 2025 · H058	$16M	115	$139K	9.9%	$99.05	120	33.7%	7.5	7
Residence Inn Clay Rd 10421 Clay Rd · 2016 · H151	$17M	133	$128K	9.3%	$92.93	121	34.4%	7	6
Staybridge Suites Med Center NRG/TMC · 2017 · H072	$17M	120	$142K	8.8% 7.4% w/reserve	$102.36	101	32.3%	6	5
Residence Inn Katy Mills 25401 Katy Mills Pky · 2010 · H062	$15.5M	126	$123K	8.6%	$92.60	122	30.4%	6	5

DT Galleria asking confirmed by Joe Cuomo (Alchemy) on 2026-04-29 at $30M. PIP guidance $15-17M (Amit Mehta) at retail; THM internal RS-sourcing assumption brings PIP down to roughly half ($7.5-8.5M, ~$16-18K/key). The 4 CBRE listings (Michael Yu / Rahul Bijlani team) had pricing forwarded by Tyler Bean (JTB co-broker).

Best VALUE

In-place economics

1. DoubleTree Galleria 8

25% of replacement cost at asking. With THM's RS-sourced PIP ($7.5-8.5M, ~half the $15-17M broker retail estimate), all-in cap moves from 7.7% (broker PIP) to 9.3% (RS PIP) on $1.5M annual rooms upside thesis. Lender-owned (Wells Fargo REO via Redus). Pricing confirmed by Cuomo at $30M.
2. Courtyard Kingwood 7.5

9.9% cap on real $1.58M NOI. Just completed Marriott 7-yr PIP cycle (no near-term capex). 33.7% margin proven. Self-managed savings lever (3% fee).
3. Residence Inn Clay Rd 7

Newest in stack (2016). RevPAR leader (RGI 121). 9.3% cap. But 2025 NOI declined 7.6% vs 2024.

Best UPSIDE

NOI growth potential

1. DoubleTree Galleria 9
- ARI gap: 88.8 vs 100, ~$1.5M/yr rooms upside if PIP closes the gap
- Galleria submarket T-3M RevPAR +10.3%, comp set +25% YoY
- 50% suite mix plus 9,200 sf event space, premium product post-PIP
- Operator change (Crescent to THM) plausibly worth +$5-8 ADR
- F&B running breakeven, fix lever; NOI margin 18.5% vs 25-30% target
- FIFA 2026 (Houston, 7 matches) episodic ADR tail
2. Courtyard Kingwood 7
- Post-reno ramp: YTD 2026 revenue +33% YoY
- F&B at 103.5% dept cost, right-size lever
- 3% mgmt fee saved if self-managed
- Caveat: broker pro forma already prices in 19% RevPAR lift to $118
3. SBS Med Center 5

ARI -7pts vs comp ($370K rate-lift). FIFA 2026 (NRG <1 mi). But: PIP coming ($1.8-3M), 6 newer competitors at 1,166 keys, RGI -2.18% YoY.

My read

PURSUE

DoubleTree Galleria

Cuomo confirmed $30M asking. With broker PIP $15-17M, all-in basis $94-99K/key, 7.7% cap. With THM's RS-sourced PIP at roughly half ($7.5-8.5M, $16-18K/key), all-in basis drops to $79-80K/key and cap moves to 9.3%. Below replacement cost (~$250K/key new build, so 32% of replacement at RS PIP). Multiple stacked rate-uplift levers. Scale risk is real (476 keys = THM portfolio doubles in keys), but entry per key is the lowest by 50%. Lender-motivated seller (Wells Fargo REO via Redus) leaves room to negotiate.

PURSUE (small)

Courtyard Kingwood

Clean post-reno asset, no near-term PIP, 9.9% cap, ramp story credible (not aggressive). $16M is in range for a Type-A acquisition that doesn't burn capital. Good portfolio-builder.

WATCH

RI Clay Rd, SBS Med Center

Both fairly priced at asking. Clay Rd is the youngest asset (2016) with brand stability but limited rate ceiling (already at RGI 121). SBS Med has FIFA tail and ARI gap but PIP overhang and a thicker comp-set headwind. Counter-offer or pass.

PASS

RI Katy Mills at $15.5M

Priced to 2024 ($1.92M NOI), not 2025 ($1.33M). 2025 NOI down 30% YoY. 16-yr-old Marriott means Gen 5/6 PIP overhang ($1.9-3.2M). Counter at $13.5-14M or skip.

Open questions / next moves

DT Galleria asking confirmed at $30M (Cuomo, 2026-04-29). Next: open LOI dialogue, push for OM (still listed "Pending" in dataroom).
Verify free-and-clear on RI Clay Rd. Operating LP shows $869K/yr interest expense outside the operating co.
Push CBRE for actual PIP cost guidance on each Tyler Bean deal. None disclosed in the OMs. Apply THM RS-sourcing factor (~50% of broker retail) on whatever they quote.
RI Katy Mills shows leased-OpCo / LandCo split. Underwrite real-estate-only economics, not OpCo P&L (which pays $1.685M intercompany rent).
SBS Med Center has recurring water/flood damage line items (2021, 2024, 2025). Inspect drainage/envelope before LOI.

Sources: CBRE Deal Flow VDRs Michael Yu / Rahul Bijlani team (signed 2026-04-29, co-broker Tyler Bean / JTB). Alchemy dataroom for DT Galleria (Joe Cuomo). Amit Mehta pricing intel for DT.

RPP H062, H058, H072, H151, H150 · STR census via str_census table