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Classic Auction - Hospitality

Holiday Inn Express & Suites - Cleveland TX

600 Hwy 59 South, Cleveland, TX 77327

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  • Asset Type
  • Real Estate
  • Property Type
  • Hospitality
  • Land Area
  • NA
  • Year Built
  • 2011
  • Number of Floors
  • 3
  • Number of Buildings
  • 1
  • Parking Count
  • 73
  • Hospitality Type
  • Select Service
  • Number of Rooms
  • 68 Rooms

Absentee Owned - Significant Upside

Investment Highlights:

  • Fee simple interest in the 68-room Holiday Inn Express Cleveland TX offered at a substantial discount to replacement cost 
  • Absentee-owned hotel with significant upside for a prospective buyer taking over for current management 
  • Ability to retain the Holiday Inn Express flag for a long-term license upon completing the Formula Blue or assume the remaining term until December 2023 without a new change of ownership PIP
  • Elements of the Formula Blue PIP have been completed thus reducing future renovation budgets
  • Situated directly adjacent to and directly visible from US Interstate 69, the primary commercial corridor for Cleveland and Northeast Houston with more than 25,000 vehicles passing the location daily
  • Optimal time to be investing in the Houston MSA with the city home to nearly 7MM residents, the second highest number of Fortune 500 headquarters within the US, and a highly favorable tax climate that will incentivize economic growth and diversification in the midst of the national economic recovery
  • Houston was the second fastest growing metropolitan area from 2010-2019 with approximately 1.28MM new residents and is projected to gain another 1.24MM residents by 2029, which will make Houston one of the fastest growing metro areas in the US for two consecutive decades


The Offering:

Paramount Lodging Advisors and RealINSIGHT Marketplace are pleased to present for sale the fee simple, absentee owned, 68-room Holiday Inn Express & Suites Cleveland, TX. The Property, built in 2011, is located in the northern section of the Houston, TX MSA along Interstate 69. This unique opportunity allows an investor to acquire a well-maintained, positive cash flowing asset that is unencumbered of management and is ideally located in 5th largest MSA in the U.S.

Property Tours: 

Tours will be by appointment only. Please reach out to the Paramount Lodging Advisors team to schedule your tour. 

  • Tuesday, January 26th to Thursday, January 28th
  • Tuesday, February 9th to Thursday, February 11th

 

Financing Availability Summary

Holiday Inn Express – Cleveland, TX
Below for your review is a summary of loan terms based on our initial review of the available due diligence material. Final loan terms will be subject to a more formal underwriting process by the lender of both the asset and the borrower.

Proposed Loan Terms

Program:                            Bank Loan
Term:                                  3 to 5 yrs
Loan-to-Cost:                    50% - 60%
Rate:                                   5.0-5.25%
Amortization:                     25 years
PPP:                                    Negotiable
Guaranty:                           Recourse
Fees:                                   50-75 bps (excludes fee paid to Paramount)

Program:                            SBA 7a
Term:                                   25yr
Loan-to-Cost:                     Up to 80%
Rate:                                   Prime + 150bps – 200bps (adjusting quarterly)
Amortization:                     25 years
Prepymt Penalty:               Sliding Scale
Guaranty:                           Recourse
Fees:                                   2.75% which can be financed (excludes fees paid to paramount)

Program:                            USDA B&I
Term:                                  25yr
Loan-to-Cost:                    75% - 85%
Rate:                                   Prime + 150bps – 200bps (adjusting quarterly)
Amortization:                     25 – 30 years
Prepymt Penalty:               5% in first five years
Guaranty:                           Recourse

Fees:                                   2.5% up front – Yearly Renewal fee of .5% of balance


These terms are not all-inclusive. Rates and terms are set and approved by loan committee after the deal has been formally underwritten)

This letter is not a commitment, but only a letter outlining indicative terms based on preliminary discussions with prospective lenders. Note that this is one example of a financing option for this property. We would welcome the opportunity to discuss your financing needs in more detail.

We look forward to working with you.
Sincerely,

John Pascal Managing Director 312.767.3320
Email: john@paramountcapitaladvisors.com

Tyler Cornelius Senior Associate 312.584.1360
Email: tyler@paramountcapitaladvisors.com
 

Disclaimer: The information being provided herein is for informational purposes only. No representation or warranty is made as to the accuracy or completeness of any information contained herein, including, without limitation, any information regarding the condition of the Property, the condition of title or Property descriptions.

Any documents and/or pictures posted herein or elsewhere on the RealINSIGHT Marketplace, (the "Website") are for informational purposes only, and may not represent the current condition of the Property or the condition of the Property at the time of sale. The posting of pictures herein or elsewhere on the Website does not constitute a guarantee that any items represented in the pictures will be present when the buyer takes possession of the Property.

You are encouraged to conduct your own due diligence and investigate all matters relating to the Property. It is recommended that you seek independent advice, including legal advice, to perform your due diligence and that you use good faith efforts in determining that the content of all information provided to or obtained by you is accurate.

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Platform Fee

The platform fee for this transaction is the greater of 5.00% or a minimum of $25,000.

Need Help?

Have questions about Marketplace? You can reach us at 800.915.7015 or info@rimarketplace.com.

Auctioneer

  • Lamar P. Fisher

    Fisher Auction Company Inc.

    License: 10344