Red Roof Inn & Suites
For Sale
$4,700,000
9902 Gulf Fwy # 128, Houston, TX 77034
Airport-oriented lodging asset with Gulf Freeway exposure and connections to Houston’s major employment and visitor centers.
Property Size48,132 SF
Days on Market8
Property Features for 9902 Gulf Fwy # 128
General Information
Standard status
Active
Size
48,132 SF
Class
C
Property subtype
Other
Additional Details
Highway Access
Yes
Building Details
Building Size
48,132 SF
Year Built
1984
Year Renovated
2022
Units
131
Listing Agency:
Seth Equities
(281) 968-5019
Listed By:
Rorik Seth · License #9015432
Source:
Commercialcafe
Added: Aug 15
Changed: Aug 16
Last Checked: Aug 18 at 6:58AM
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.
Red Roof Inn & Suites Houston–Hobby Airport is a hotel property at 9902 Gulf Freeway in Houston, Texas, built in 1984. Its position along Interstate 45 places the asset within the southeast Houston lodging corridor and supports access to William P. Hobby Airport, Downtown Houston, the University of Houston, the Texas Medical Center, NRG Park, Port Houston, and the NASA Johnson Space Center area.
The surrounding demand base spans aviation, medical, university, industrial, military, entertainment, convention, and leisure activity. Nearby employment and destination nodes include the Pasadena industrial corridor, Houston Ship Channel, Ellington Field, and the Houston Bay Area. Almeda Mall is approximately 2.4 miles away, Ellington Field Joint Reserve Base and the Houston Spaceport are approximately 5.4 miles away, the University of Houston is approximately 7.2 miles away, Port Houston is approximately 8.8 miles away, Downtown Houston and the George R. Brown Convention Center are approximately 9.5 miles away, and NASA’s Johnson Space Center and Space Center Houston are approximately 11.7 miles away. William P. Hobby Airport serves approximately 14 million passengers annually.
The surrounding demand base spans aviation, medical, university, industrial, military, entertainment, convention, and leisure activity. Nearby employment and destination nodes include the Pasadena industrial corridor, Houston Ship Channel, Ellington Field, and the Houston Bay Area. Almeda Mall is approximately 2.4 miles away, Ellington Field Joint Reserve Base and the Houston Spaceport are approximately 5.4 miles away, the University of Houston is approximately 7.2 miles away, Port Houston is approximately 8.8 miles away, Downtown Houston and the George R. Brown Convention Center are approximately 9.5 miles away, and NASA’s Johnson Space Center and Space Center Houston are approximately 11.7 miles away. William P. Hobby Airport serves approximately 14 million passengers annually.
Key Highlights
- Hotel property at 9902 Gulf Fwy # 128, Houston, TX 77034
- Built in 1984 with access from Interstate 45
- William P. Hobby Airport serves approximately 14 million passengers annually
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
$256,794
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
5.46%
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%
$5,135,880
$5.1M
Cap Rate 7%
$3,668,486
$3.7M
Cap Rate 9%
$2,853,267
$2.9M
Market Conditions
NOI Build-Up for 48,132 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
$693.1K $14.40/SF
− Vacancy
−$152.5K −$3.17/SF
EGI
$540.6K $11.23/SF
− OpEx
−$283.8K −$5.90/SF
NOI
$256.8K $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%
$5,135,880
Cap Rate 7%
$3,668,486
Cap Rate 9%
$2,853,267
Alternative Uses
Best Use
Hotel Hospitality
$3.67M
$3.21M – $4.28M
NOI $256,794 @ 7.0% cap · market cap 5.46%
Second Best
—
—
no second resolved use
Theoretical Best
Office A
$12.38M
$10.83M – $14.44M
NOI $866,376 @ 7.0% cap · market cap 18.43%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
Yes
Highway access
Location Intelligence
Trade Area within ½ mile
1,020
Businesses Nearby
Explore this area
Business Placement
Demographics for 77034, TX
38,186
Population
14,188
Households
2.7
Avg Household Size
31
Median Age
13%
College-Educated
70%
High-School Grad
14.2 sq mi
ZIP Area
2,689
Density / Sq Mi
$59,516
Median Household Income
$35,127
Median Earnings
$1,178
Median Rent
$178,100
Median Home Value
Questions? Ask Rey
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Frequently Asked Questions
What type of property is this?
Hotel - Airport-oriented lodging asset with Gulf Freeway exposure and connections to Houston’s major employment and visitor centers.
Where is this hotel located?
The property is located at 9902 Gulf Fwy # 128 Houston, TX.
What is the asking price?
The asking price for this property is $4,700,000.
What are key features of this property?
This property features: Hotel property at 9902 Gulf Fwy # 128, Houston, TX 77034; Built in 1984 with access from Interstate 45; William P. Hobby Airport serves approximately 14 million passengers annually
