64-Key Extended-Stay
For Sale
Contact for pricing
1340 N Sam Houston Pkwy E, Houston, TX 77032
Hilton-branded all-suite hotel with kitchens and separate living areas designed for extended-stay accommodations.
Property Size53,872 SF
Price / SF$120.66
Days on Market115
Property Features for 1340 N Sam Houston Pkwy E
General Information
Standard status
Active
Size
53,872 SF
Property subtype
Hospitality
Occupancy
72%
Investment Type
Value Add
Building Details
Year Built
2003
Year Renovated
2019
Listing Agency:
Seth Equities
(281) 968-5019
Listed By:
Rorik Seth · License #TX 9015432
Source:
Crexi
Added: May 8
Changed: Aug 29
Last Checked: Aug 29 at 9:03PM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of Seth Equities
Investment Insights
Based on property information with market context.
This 64-key Homewood Suites by Hilton is an all-suite extended-stay hotel totaling 53,872 square feet. Guest accommodations include fully equipped kitchens and distinct living areas, supporting longer stays and corporate travel. The property was constructed in 2003 and operates under Hilton’s Homewood Suites flag.
The hotel is approximately five miles from Houston George Bush Intercontinental Airport and has direct access to Sam Houston Parkway, also known as Beltway 8. The corridor connects with Interstate 45 and the Hardy Toll Road, providing reach across the Houston metropolitan area. Nearby demand sources identified in the property information include airline operations, energy companies, logistics and distribution facilities, corporate offices, and airport-related business activity.
A Hilton Property Improvement Plan is required, with renovation completion scheduled by 2027. Current occupancy is trending in the low-80% range, and the property has recorded year-over-year monthly performance growth.
The hotel is approximately five miles from Houston George Bush Intercontinental Airport and has direct access to Sam Houston Parkway, also known as Beltway 8. The corridor connects with Interstate 45 and the Hardy Toll Road, providing reach across the Houston metropolitan area. Nearby demand sources identified in the property information include airline operations, energy companies, logistics and distribution facilities, corporate offices, and airport-related business activity.
A Hilton Property Improvement Plan is required, with renovation completion scheduled by 2027. Current occupancy is trending in the low-80% range, and the property has recorded year-over-year monthly performance growth.
Key Highlights
- 64‑key extended‑stay hotel with 53,872 square feet
- All‑suite layout with fully equipped kitchens and separate living areas
- Homewood Suites by Hilton flag
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$287,418
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
4.42%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$5,748,360
$5.7M
Cap Rate 7%
$4,105,971
$4.1M
Cap Rate 9%
$3,193,533
$3.2M
Market Conditions
NOI Build-Up for 53,872 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$775.8K $14.40/SF
− Vacancy
−$170.7K −$3.17/SF
EGI
$605.1K $11.23/SF
− OpEx
−$317.7K −$5.90/SF
NOI
$287.4K $5.34/SF
Area
Houston, TX
Vacancy
22.00%
Lease Rate
$14.40 /SF/Yr
Expense Ratio
52.50%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$5,748,360
Cap Rate 7%
$4,105,971
Cap Rate 9%
$3,193,533
Alternative Uses
Best Use
Hotel Hospitality
$4.11M
$3.59M – $4.79M
NOI $287,418 @ 7.0% cap · market cap 4.42%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$13.85M
$12.12M – $16.16M
NOI $969,696 @ 7.0% cap · market cap 14.92%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Location Intelligence
Trade Area within ½ mile
1,526
Businesses Nearby
Explore this area
Business Placement
Demographics for 77032, TX
13,497
Population
4,843
Households
2.8
Avg Household Size
29
Median Age
8%
College-Educated
64%
High-School Grad
23.1 sq mi
ZIP Area
584
Density / Sq Mi
$36,731
Median Household Income
$30,574
Median Earnings
$1,148
Median Rent
$122,900
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Hotel - Hilton-branded all-suite hotel with kitchens and separate living areas designed for extended-stay accommodations.
Where is this hotel located?
The property is located at 1340 N Sam Houston Pkwy E Houston, TX.
What is the asking price?
The asking price for this property is $6,500,000.
What are key features of this property?
This property features: 64‑key extended‑stay hotel with 53,872 square feet; All‑suite layout with fully equipped kitchens and separate living areas; Homewood Suites by Hilton flag
