HVS Brokerage & Advisory has closed on the sale of the 123-key Four Points by Sheraton Houston Intercontinental Airport. The property was purchased by Auerbach III Houston-Hospitality I LLC via an online auction on the Ten-X platform from Pari LLC.
The buyer has secured a long-term franchise license agreement with Marriott and has hired a reputable management company to operate the select-service hotel, which was built in 2017.
The property benefits from its location along Beltway 8 between Interstate 45 and the Hardy Toll Road, according to HVS, and is about six miles from George Bush Intercontinental Airport (IAH). Demand related to both domestic and international travel has started to return, as illustrated by the rise in year-to-date passenger numbers. Through September, more than 39 million passengers traveled through IAH, reflecting a 25% increase over the number of passengers through the same period last year, which was closer to 31 million.
“This was another smooth execution with the Ten-X platform,” said Eric Guerrero, managing director/partner, HVS Brokerage & Advisory. “The hotel suffered from a negative cash flow and poor operational upside, so we had to craft a unique deal story showing the upside. Given the Marriott brand affiliation and deal upside, we received a tremendous response from the market, and an institutional buyer made a strong preemptive offer that was accepted by the seller prior to the Ten-X online auction. We closed the deal quickly, and the buyer has since installed GF Hotels & Resorts as the management company to help turn around operations.”
Guerrero, along with HVS Brokerage & Advisory team members James Rebullida and Fadi Rawashdeh, participated in this transaction.