Mississippi Hospitality Development Co. LLC had a contract fall out earlier this year for the four-acre property at 11333 Katy Freeway. "The buyer had decided to pass because it didn't fit their needs so the owner just told us to refinance it and they'd hold the asset," says Leonard Smith, senior vice president of Chicago-based Aries Capital Inc. Then along came locally based Moody National with an offer.
"What's happening in this case is that the seller wants to move into larger properties and is taking depreciation on the existing property," Smith tells GlobeSt.com. "They had a lot of equity in the Hampton Inn and they're moving it to other areas." But, he adds that he's not aware of any potential closings on the seller's immediate docket.
The Hampton Inn's average daily room rate is $80 per night. Its occupancy averages 75%. Smith says in all respects that the property hits the submarket's average for the hotel sector.
Local hospitality experts say Houston, as a whole, is beginning to perk up in the hospitality industry, but some submarkets might be a little weaker due to low barriers to entry and lack of zoning. The west side continues to shows strength in hospitality as well as other product.
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