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Residence Inn Houston Katy Mills – Image Credit CBRE
CBRE Hotels is soliciting offers for the Residence Inn by Marriott in Katy, Texas, a premium extended-stay asset with strong cash flow in a thriving submarket of Houston.
CBRE Hotels has put the Residence Inn by Marriott in Katy, Texas, on the market. The property represents a unique opportunity for potential investors to acquire a premium extended-stay asset with a consistently increasing room revenue trend and strong operational performance.
According to CBRE Hotels, the Residence Inn showed a remarkable 14% increase in Room Revenue and Revenue Per Available Room (RevPAR) in 2024 compared to 2023. Designated as the RevPAR leader among its competitors, the hotel had an index of 128% as of the 2024 year-end period.
In addition to its strong revenue performance, the Residence Inn showcases robust operating results, making it a compelling investment opportunity. The Net Operating Income margin stands at an impressive 37.4%, indicating a stable cash flow potential for potential investors.
Another attractive feature is the property’s strategic location. It is situated across the street from Katy Mills Mall, a major retail destination in the Houston Metro area with over 175 stores and numerous dining and entertainment venues. This proximity to amenities and leisure options enhances the property’s appeal as an upscale extended-stay hotel.
Another significant advantage is the affiliation with the Marriott brand. Residence Inn by Marriott is a nationally recognized extended-stay brand, and this particular property benefits from the global Marriott Bonvoy program, a premier loyalty program with 177 million members and a global distribution system.
Regarding demand drivers, the hotel is located near multiple corporate campuses and leisure attractions. These include the Mason Creek Office Center, Katy Mills Mall, Typhoon Texas Waterpark, and the LaCenterra Center at Cinco Ranch. Furthermore, it is a short distance from the major medical care provider, Memorial Hermann Hospital Katy.
Finally, the Residence Inn is located in one of the fastest-growing metros in the U.S., Houston, the largest city in Texas and the fourth largest in the U.S., is home to more than 7.5 million residents. The city’s rapid expansion, projected to surpass 8 million people by 2029, underscores the investment potential of this property.
Inquire at CBRE.
