10025 S Main St
Houston, TX 77054

HVS, as the sole and exclusive advisory firm to Ownership, is pleased to present the opportunity to acquire the recently renovated 80-key Candlewood Suites Texas Medical Center (the "Hotel" or "Property"), an extended-stay asset located in one of the highest barrier-to-entry submarkets in Houston, TX. The Property will be available to tour on the following dates: - Monday March 11 and Tuesday March 12 - Monday March 18 and Tuesday March 19 If you would like to to schedule a tour please contact James Rebullida. All offers to purchase the Hotel must be submitted no later than 5:00 PM CT on Friday, March 29, 2019. Interested and qualified principal investors are required to perform due diligence prior to submitting their offer, including financial analysis and file review. All bidders are strongly encouraged to tour the Property prior to bid submission. Proposals should be sent directly, via email, to HVS Brokerage & Advisory, c/o Eric Guerrero or James Rebullida. To be considered, your offer must include: - Purchase price - Deposit amount(s) - Preferred due diligence period - Preferred closing period - Source and confirmation of available equity to close - Debt structure - List of current hotels owned and experience with IHG INVESTMENT HIGHLIGHTS Cash Flow, RevPAR Penetration, and Significant Upside - Based on the 2018 P&L, the Hotel achieved a house profit of 47.1%, with a NOI flow-through of 29.9%, including 3% management fees and 4% FF&E reserves. The Property suffers from a severe lack of managerial attention. There is great upside for a more “hands-on” experienced operator to restructure the Hotel’s operations, establish yield-management strategies, and initiate cost-containment initiatives to maximize RevPAR penetration and NOI flow-through. - Looking at the 2018 top accounts, the Property received a total of 7,542 rooms nights from its local negotiated rates, which is down from 8,509 rooms nights in 2017. This 13% decline indicates the lack of sales and marketing efforts by current ownership. Excellent Location Among Strong Corporate and Leisure Demand Generators - The Texas Medical Center (three miles) district is the largest Medical Complex in the world. There are over 54 medicine-related institutions, with 21 hospitals and eight specialty institutions, eight academic and research institutions, four medical schools, seven nursing schools, three public health organizations, two pharmacy schools and a dental school. With 1,345 total acres and $25 billion in GDP, the district ranks the 8th largest business district in the US. There are over $3 billion in construction projects underway, including the 30 acre TMC3 biomedical research complex. - NRG Park (two miles) is the premier and most-versatile tradeshow, consumer show, convention and sports and entertainment complex in Houston. The 350-acre complex with 26,000 parking spaces is uniquely comprised of four facilities: NRG Center, NRG Arena, NRG Stadium and NRG Astrodome. Combined, over 750 events are hosted within the park including: the world-famous Houston Livestock Show and Rodeo, NFL's Houston Texans, Offshore Technology Conference, Houston Auto Show, Monster Jam, and concerts. Recently Renovated Product - Current ownership has spent over $1.1M ($13,750 per key) in renovations to update the lobby, fitness center, guest rooms and exterior work. Minimal PIP is expected for the new buyer. Candlewood Suites Franchise - Upon completion of the change-of-ownership PIP, an investor can expect a new, 15-year license agreement with IHG. Unencumbered - The Property is being offered free and clear of any management encumbrances, providing an investor with the flexibility to revamp the operational strategies of the current operator.