In Brief: A property in Woodway, Texas, set for the development of a dual-branded Home2 Suites and Tru by Hilton hotel, has been listed for sale, marking a significant opportunity in the expanding dual-brand hotel market.
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Dual-Branded Home2 Suites/Tru by Hilton Development Site – Image Credit HVS
Project Overview
A development opportunity in Woodway, Texas, has been listed for sale, including both the approved site and franchise rights for a dual-branded Home2 Suites/Tru by Hilton hotel. The project is designed to feature 159 rooms and will operate under two Hilton brands. The offering includes not only the physical site but also the necessary franchise agreements to proceed with the development.
Location and Accessibility
The proposed hotel site is situated just off U.S. Highway 84 in the Woodway submarket, an area known for its higher household incomes. The location is adjacent to the Colonnade Parkway commercial corridor, which is home to a variety of retail and dining options. This proximity to commercial amenities is expected to support both guest convenience and ongoing lodging demand.
Operational Efficiencies
The dual-branded Home2 Suites and Tru by Hilton project is designed to improve operational efficiency. By sharing staffing, laundry, maintenance, and management resources between the two brands, the hotel can reduce per-room operating costs. This shared approach is intended to enhance net operating income (NOI) compared to single-brand hotels of similar size.
Market Characteristics
Woodway is characterized by a stable, high-income population and a robust commercial environment. These factors contribute to what the listing describes as “rate integrity,” meaning the ability to maintain consistent room rates throughout the year. The area’s economic stability is expected to support both corporate and leisure travel demand for the hotel.
Demand Drivers
Several major employers and institutions are located near the site, including L3Harris, SpaceX McGregor, Caterpillar, Baylor University, and regional hospitals. These organizations are identified as significant sources of lodging demand, particularly from corporate travelers and visitors to the area.
Proximity to Local Attractions
The hotel site is also located near several of Waco’s key leisure destinations. These include Magnolia Market at the Silos, the Baylor Sports Complex, and the Downtown Warehouse District. The close proximity to these attractions is expected to attract leisure travelers in addition to business guests.
Investment Considerations
According to the listing, the dual-brand model is increasingly preferred by institutional investors due to its diversified revenue streams. Both Home2 Suites and Tru by Hilton benefit from Hilton’s global loyalty program, Hilton Honors, which has over 150 million members. The listing positions the asset as offering scale, brand recognition, and market presence that is less common in the Waco submarket.
Summary
The listing of the Home2 Suites/Tru by Hilton development site in Woodway, Texas, offers investors the opportunity to acquire both an approved hotel site and the associated franchise rights. The project’s location, operational efficiencies, and proximity to major employers and attractions are highlighted as key factors likely to support its long-term performance.
Inquire at HVS.