In Brief: HVS Brokerage & Advisory has listed the 74-room Homewood Suites by Hilton Houston West-Energy Corridor for $8.4 million, following a price reduction.
-
Homewood Suites by Hilton Houston West-Energy Corridor – Image Credit HVS
The hotel, which underwent a $2 million renovation in 2023 and 2024, is being marketed as an extended-stay investment opportunity in Houston’s Katy Freeway and Energy Corridor submarket.
Property Offered at $8.4 Million
The Homewood Suites by Hilton Houston West-Energy Corridor is listed for $8.4 million, or approximately $113,500 per room.
The 74-room hotel is located near Interstate 10 in west Houston’s Katy Freeway and Energy Corridor area. Built in 2007, the property operates under Hilton’s Homewood Suites extended-stay brand and is expected to receive a new 15-year franchise agreement with Hilton.
The property is being offered without a management agreement.
Recent Renovation and Operating Results
The hotel underwent a $2 million renovation in 2023 and 2024, including guest rooms and interior common areas. The work equated to about $27,000 per room.
A limited property improvement plan is expected after a sale because of the renovation work already completed.
For the year ended 2025, the hotel reported $2.11 million in room revenue. Its average daily rate was $108.78, occupancy was 72%, and revenue per available room was $78.30.
The hotel ranked third among six competitors in occupancy and fourth in revenue per available room during the 12 months ending in March 2026, based on STR data cited in the marketing materials. The listing identifies opportunities to improve revenue through sales efforts and operating expenses.
Potential Operating Changes
Operating statements for comparable hotel properties indicate gross operating profit margins could range from 44% to 50%. The broker identified payroll, room expenses, and administrative and general costs as areas where a new operator may seek savings.
The asking price is below the estimated cost to build a comparable limited-service hotel with similar amenities. A new comparable property would require an investment of at least $150,000 per room, compared with the offering price of about $113,500 per room.
Energy Corridor Demand Drivers
The hotel is in the Energy Corridor, a west Houston business district along Interstate 10 between Beltway 8 and the Grand Parkway. The area includes offices, medical facilities, retail centers and entertainment venues.
Corporate employers in the area include Accenture, Exxon Mobil, Transocean, ConocoPhillips, Wood Group and Shell. Nearby retail and leisure destinations include CityCentre, Memorial City Mall, Town & Country Shopping Center, Topgolf and Bear Creek Pioneers Park.
Memorial Hermann announced a $282.5 million expansion and renovation project that includes an eight-story patient tower, expanded surgical capacity, imaging upgrades and a rooftop helipad. Construction was expected to begin in 2026.
Houston Methodist West Hospital is pursuing a $247 million expansion, with construction beginning in late 2024 and completion expected in 2027.
Business and Manufacturing Activity
Other developments cited in the listing include Inventec’s planned 540,000-square-foot electronics production facility in Katy. The project at Park 10 Ninety-Nine could create more than 500 jobs and include up to $55 million in leasehold improvements.
DBR Engineering Consultants announced a 47,150-square-foot headquarters lease at Four Westlake Park and planned to move about 100 employees to the Energy Corridor by June 2026. McDermott signed a 50,000-square-foot lease at Westgate II in 2025, adding a second office and 254 employees to the area.
TMEIC relocated its North American headquarters to Eldridge Oaks in the Energy Corridor and completed a $3 million renovation of nearly 23,900 square feet.
Inquire at HVS.
