Fresh off of Renovation, Telecom Corridor Hilton Finds Buyer
The hotel is part of the Telecom Corridor, a six-mile strip along the Central Expressway where there are more than 600 technology companies in more than 25 million square feet of office space.
RICHARDSON, TX—A strategically located hotel in the immediate vicinity of Telecom Corridor recently attracted buyer interest. Hilton Garden Inn Dallas/Richardson, a four-story 125-room select-service hotel was sold by a Texas-based LLC, and the buyer and price were undisclosed.
“The hotel provides an attractive option for travelers associated with the University of Texas at Dallas and State Farm’s headquarters, and it’s also in the immediate vicinity of Telecom Corridor, which provides a diverse array of corporate users,” said Chris Gomes, senior managing director investments in Marcus & Millichap’s Dallas office. “This advantageous location provides the property with insulation from new supply being added in Richardson.”
Gomes and Allan Miller, senior vice president investments, represented the seller.
“The property generated strong top-line revenue in 2018 despite being under major renovation,” notes Miller. “In the coming years, top-line performance is expected to continue and outperform the market.”
Built in 2008, the Hilton Garden Inn Dallas/Richardson is south of President George Bush Turnpike, one mile from the University of Texas at Dallas, two miles from US Route 75/Central Expressway and 10 miles from Galleria Dallas. The hotel is part of the Telecom Corridor, a six-mile strip along the Central Expressway where there are more than 600 technology companies within more than 25 million square feet of office space.
“Most of the existing hotels and new supply concentrated along the Central Expressway/US Highway 75 cater predominantly to the Telecom Corridor,” Gomes tells GlobeSt.com. “This hotel is located along President George Bush Turnpike and most of its top accounts are within a two-mile mile radius. Also, offering an onsite bar and restaurant as a select service hotel, the Hilton Garden Inn has proven be a convenient venue for local corporate accounts.”
This year, buyer demand will likely pick up in many of the state’s smaller markets where bidding is heating up with first-year returns up to 200 basis points higher than in Dallas and Houston, according to a report by Marcus & Millichap. These areas include El Paso, San Antonio and Lubbock, where buyers are primarily targeting limited and select service hotels comprising 150 rooms or less. While sales are increasing in these smaller metros, nearly a third of hotel transactions will continue to take place in the Dallas/Fort Worth market, which is attracting out-of-state attention, says the report.