114-Room Exterior-Corridor
New
For Sale
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16884 Northwest Fwy # 119, Houston, TX 77040
Operational branded economy hotel with freeway access, surface parking, and public Wi-Fi.
Property Size44,616 SF
Lot Size2.58 Acres
Price / SF$112.07
Days on Market6
Property Features for 16884 Northwest Fwy # 119
General Information
Standard status
Active
Size
44,616 SF
Class
C
Total Parking Spaces
91
Lot size
2.58 Acres
Property subtype
Hospitality
Investment Type
Value Add
Site & Location
Highway Access
Yes
Road Access
Yes
Amenities
public Wi-Fi
high-speed internet access
smoke-free environment
Building Details
Year Built
1985
Year Renovated
2021
Buildings
1
Stories
2
Abandoned
No
Listing Agency:
Seth Equities
(281) 968-5019
Listed By:
Rorik Seth · License #TX 9015432
Source:
Crexi
Added: Aug 8
Changed: Aug 12
Last Checked: Aug 13 at 6:46AM
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.
The property is an operating Red Roof Inn franchise hotel with 114 guestrooms across two stories and an exterior-corridor layout. The improvements total approximately 44,616 SF on approximately 2.58 acres. Originally completed in 1985, the hotel underwent renovation in 2021 and includes surface parking, public Wi-Fi, high-speed internet access, and a smoke-free environment.
Located at 16884 Northwest Fwy # 119 in Houston, the property fronts the US-290 corridor in Northwest Houston, providing access to the Jersey Village and Cypress-Fairbanks areas. Its surrounding demand profile includes corporate, construction, logistics, healthcare, leisure, extended-stay, and value-oriented transient segments. The hotel remains open and operational.
Located at 16884 Northwest Fwy # 119 in Houston, the property fronts the US-290 corridor in Northwest Houston, providing access to the Jersey Village and Cypress-Fairbanks areas. Its surrounding demand profile includes corporate, construction, logistics, healthcare, leisure, extended-stay, and value-oriented transient segments. The hotel remains open and operational.
Key Highlights
- 114 guestrooms in a two‑story hotel
- Approximately 44,616 SF of gross building area
- Approximately 2.58 acres along the US‑290 corridor
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
$238,035
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
4.76%
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%
$4,760,700
$4.8M
Cap Rate 7%
$3,400,500
$3.4M
Cap Rate 9%
$2,644,833
$2.6M
Market Conditions
NOI Build-Up for 44,616 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
$642.5K $14.40/SF
− Vacancy
−$141.3K −$3.17/SF
EGI
$501.1K $11.23/SF
− OpEx
−$263.1K −$5.90/SF
NOI
$238.0K $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%
$4,760,700
Cap Rate 7%
$3,400,500
Cap Rate 9%
$2,644,833
Alternative Uses
Best Use
Hotel Hospitality
$3.40M
$2.98M – $3.97M
NOI $238,035 @ 7.0% cap · market cap 4.76%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$11.47M
$10.04M – $13.38M
NOI $803,088 @ 7.0% cap · market cap 16.06%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Current Use
Lease Details
Yes
Highway access
Yes
Paved road access
Location Intelligence
Trade Area within ½ mile
497
Businesses Nearby
Explore this area
Business Placement
Demographics for 77040, TX
49,524
Population
19,197
Households
2.6
Avg Household Size
35
Median Age
28%
College-Educated
79%
High-School Grad
13.8 sq mi
ZIP Area
3,589
Density / Sq Mi
$67,254
Median Household Income
$37,004
Median Earnings
$1,343
Median Rent
$224,200
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Hotel - Operational branded economy hotel with freeway access, surface parking, and public Wi-Fi.
Where is this hotel located?
The property is located at 16884 Northwest Fwy # 119 Houston, TX.
What is the asking price?
The asking price for this property is $5,000,000.
What are key features of this property?
This property features: 114 guestrooms in a two‑story hotel; Approximately 44,616 SF of gross building area; Approximately 2.58 acres along the US‑290 corridor
