Press Release

Sale of Hyatt Place Continues Streak of Hotel Investment in North Houston

29 11月 2018

Hyatt Place Bush Airport 608x436

CBRE Hotels has arranged the sale of the 126-room Hyatt Place Bush Intercontinental Airport at 300 Ronan Park Place in north Houston. Michael Yu, Rahul Bijlani, and Agrama Mannapperuma managed the transaction. Delaware-based PG LCP Houston Hospitality LLC sold the property to an undisclosed buyer. 

This marks the third hotel sold in north Houston by CBRE Hotels in less than two months. The other transactions, include the sale of the 220-room Red Lion Houston Intercontinental Hotel, located at 500 North Sam Houston Parkway East. Southlake-based SD Partners LLC purchased the property from Hornet Investors LP. Prior to the transaction, the full-service hotel was operating under the Park Inn by Radisson brand. Also, CBRE managed the sale of the Best Western Plus Houston North at 14753 North Freeway near East Airtex Drive.

“Some areas of Houston have seen a significant year over year REVPAR decline after the impact of Hurricane Harvey went away. There are a sufficient number of hotels for sale in those areas, and north Houston has been an example of that,” said Senior Vice President Michael Yu. 

Hotels in north Houston are included in the George Bush Airport hotel submarket which makes up 15 percent of the market, the largest hotel submarket in Houston with 161 properties. 

“Hotels being sold in Houston are less expensive on a per room cost when compared to hotels being sold in other major Texas markets. Buyers looking to buy in the Houston area should be able to purchase a hotel below replacement costs for most deals and should be poised to be in a good position when the market rebounds,” said CBRE Vice President Tyler Bean. Mr. Bean represented Hornet Investors LP in the Red Lion transaction and JPM AIRTEX LLC in the Best Western Plus transaction. 

The alluring price points and plans to redevelop the former Exxon Mobile campus, now called CityNorth, have given investors incentive to place capital in north Houston. Driftwood Hospitality Management recently purchased the 480-room Hilton Houston North and 390-room Marriott Houston North. The company has announced plans to significantly renovate both properties. 

CBRE Hotels is a specialized team within CBRE, providing advisory, capital markets, investment sales, research and valuation services to companies in the hotel sector. CBRE Hotels is comprised of more than 385 dedicated hospitality professionals located in 60 offices across the globe. Hyatt Place marks the 27th property in Texas in 2018 sold by the CBRE Hotels South Central, ten of those were in the Houston area. 
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2021 revenue). The company has more than 105,000 employees (excluding Turner & Townsend employees) serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.