The 1980s-era properties, connected via a sky bridge, total 377 rooms. Both formerly were flagged as Hilton Inns. "Similar properties have sold from $25,000 to $40,000 per room," says Tandy Lofland, president of Intergroup Realty Inc. who teamed with Fort Lauderdale, FL-based Steckroth Hospitality Group Inc. to represent the seller. Using those metrics, Riya Group paid $9 million to $15.1 million for the hotels. According to the Harris County Appraisal District, the assessed value is roughly $10 million.
"The airport submarket has been a little tough and these are older properties," Robert Wiemer, vice president of the Tampa, FL-based Plasencia Group, tells GlobeSt.com. "I would be surprised if they even sold for the assessed value."
Situated on nearly 10 acres, the 157-room Hampton Inn's address is 502 N. Sam Houston Parkway and the 220-room Clarion Inn's is 500 N. Sam Houston Parkway. A room at the Hampton Inn is available for $94 per night; a room at the Clarion Inn is $105 per night.
"This acquisition has elements of a value-added and a stable investment," Lofland tells GlobeSt.com. "The properties are doing pretty well, but there are some things that need work." For example, the parking lots need to be repaved and the soft goods--bedspreads, sheets, drapes and carpets--need to be replaced. He declined to speculate how much capital investment would be needed for the upgrades.
According to Lofland, the properties received more than one offer due to their proximity to the airport and Greenspoint submarket, prominent frontage along Beltway 8 and appeal for limited-service and full-service customers. Although the Hampton Inn is limited service, the complex is considered full-service because of the amenities offered by Clarion Inn. The two hotels share a restaurant, lounge and more than 20,000 sf of meeting and banquet space. Riya Group has hired Denver-based Richfield Hospitality to manage the properties.
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