A $21.6 MILLION hotel sales transaction involving an Asian American owned company is a finalist in the Single Asset Transaction of the Year ($25 million and Under) award category for the 2018 Americas Lodging Investment Summit to be held next week in Los Angeles.
Pride Management Inc. of Beaumont, Texas, in June sold its Staybridge Suites Houston Medical Center hotel to Midas Hospitality, a hotel ownership and management group in St. Louis, Missouri.
Pride Management is co-owned by Ashwin “Anthony” Patel, president and CEO, and Nilesh “Nick” Patel, executive vice president. The company declined to comment for this article.
The five-story 120-room extended-stay property opened in February 2017. Before the hotel was completed, Pride Management enlisted CBRE Hotels to find a buyer.
Ashlynn Crandell, conference manager at Burba Hotel Network, co-sponsor of ALIS, said project nominations are reviewed based on information such as investment criteria, complexity of deal, unique challenges and renovations/expansions. A committee votes on the finalists and registered attendees of the 2018 event cast their votes for a winner.
In a news release, ALIS said the transaction is deemed notable by industry peers for several reasons.
The hotel is in a high-barrier-to-entry market as Houston’s medical center district is one of the most sought-after hotel-investment submarkets in Texas.
The district’s businesses escaped unscathed by the downturn in the energy market. The city also is one of the top MSAs with regard to the number of hotel rooms in the pipeline. “Despite the negativity surrounding the Houston market related to the decline in oil prices and new hotel room supply, the Texas Medical Center serves as Houston’s gem from a hotel investment perspective due to limited land availability and the constant economic activity in the area,” said ALIS.
The property has a prime location on Main Street, which is one of the main thoroughfares that runs through The Texas Medical Center, and directly across from NRG Stadium, home to the NFL’s Houston Texans and the Houston Livestock Show and Rodeo.
“Given that the hotel was newly constructed with no operating history and the uncertainty in the Houston market, the transaction required a strong buyer with not only a strong balance sheet, but a good track record of hotel operations,” said ALIS.
“Another unique challenge was this transaction is the highest price per key IHG upscale extended-stay hotel transaction ever in Houston. Midas was ultimately selected because of their financial wherewithal and ability to execute the transaction quickly.”
David Robert, CEO of Midas Hospitality, said the opportunity to acquire the property “fit perfectly with our company’s vision and capabilities.” It is the company’s first hotel in Texas.
“Houston is a continuously evolving city, and we have researched this market for many years. The acquisition happened at the right time and place for us.”
Other transactions nominated in the ALIS category are:
- Blantyre Resort in Lenox, Massachusetts. Blantyre Ventures acquired the 23-room luxury Blantyre Resort from Fitzpatrick Holdings for $7 million.
- The Stiles Hotel in Miami Beach, Florida. Blue Road purchased the 57-room boutique hotel from Carlyle Group for $17.5 million.
ALIS will take place Jan. 22-24 at the JW Marriott and Microsoft Theater in downtown Los Angeles.