In Brief: The Hampton Inn & Suites by Hilton Galveston, a recently renovated 104-room hotel, has been listed for sale, offering potential investors a property with strong financial performance, a long-term franchise agreement, and a prime location near Galveston’s major attractions and expanding cruise infrastructure.
-
Hampton Inn & Suites by Hilton Galveston – Image Credit HVS
Overview of the Sale
The Hampton Inn & Suites by Hilton Galveston, a 104-room hotel located near Galveston’s main leisure and business attractions, is now on the market. The property, built in 2007 and recently renovated at a cost of approximately $4 million, is being offered for sale by HVS Brokerage & Advisory. The sale includes the opportunity for a new owner to assume a 15-year franchise agreement with Hilton, and the hotel is being offered without management encumbrances, allowing flexibility for the buyer.
Property Details and Recent Renovation
The hotel underwent a significant renovation, completed in December 2025, which upgraded guestrooms and public areas. Hilton has confirmed that all required improvements under the Property Improvement Plan (PIP) have been completed to the brand’s satisfaction. As a result, only minor changes are expected for a new owner, reducing the need for immediate capital investment. The renovation has positioned the hotel in strong physical condition, contributing to its ability to command a rate premium in the Galveston market.
Location and Market Position
Located just steps from Seawall Boulevard and Galveston’s beaches, the hotel provides convenient access to major attractions such as Moody Gardens, Schlitterbahn Waterpark, the Historic Pleasure Pier, and the Port of Galveston Cruise Terminal. The area also hosts the Galveston Island Convention Center, which offers approximately 100,000 square feet of meeting space, and benefits from a variety of events throughout the year, including festivals, sporting events, and weddings. The hotel’s location supports strong demand from both leisure and group travelers.
Financial Performance and Competitive Standing
Recent financial data shows the hotel’s average daily rate (ADR) at $150.52, occupancy at 64.5%, and revenue per available room (RevPAR) at $97.09, with total room revenue of $3.69 million for the trailing twelve months ending May 2026. Year-to-date performance through May 2026 indicates a 6.2% increase in RevPAR and a 9% increase in ADR compared to the previous year. The hotel has outperformed its competitive set, achieving a RevPAR index of 145.3% and an occupancy index of 131.1% in May 2026, ranking first among five comparable properties.
From 2022 to 2025, despite renovation-related disruptions, the hotel maintained average annual rooms revenue of about $3.76 million. The property’s gross operating profit for the trailing twelve months ending April 2026 was approximately $1.56 million, with a 40.1% margin. Projections suggest further growth, with gross operating profit expected to reach $1.9 million in 2026/27 and net operating income flow-through of $1.18 million. By 2028/29, total revenue is projected to reach $4.58 million, with EBITDA after reserves exceeding $1.37 million.
Franchise and Management Flexibility
The hotel is offered with a new 15-year franchise license agreement with Hilton, providing stability and access to Hilton’s global reservation system and loyalty program. The property is being sold free of management encumbrances, allowing a buyer to select their preferred management company or self-operate, subject to Hilton’s approval.
Market Drivers and Development Activity
Galveston’s lodging market benefits from a diverse range of demand sources beyond traditional beach tourism. Institutions such as the University of Texas Medical Branch and Texas A&M University at Galveston, along with the Port of Galveston and local industrial employers, support year-round lodging demand. Recent expansions at the port, including a new cruise terminal, have increased the area’s capacity to accommodate larger cruise ships, boosting pre- and post-cruise hotel stays.
Over $1 billion in development is underway or planned in Galveston, including major projects like the $700 million Margaritaville Resort, a $250 million mixed-use development, and new residential and resort properties. These developments are expected to enhance the area’s appeal and support continued growth in hotel demand and rates.
Inquire at HVS.