Extended Stay Hotel, 55 Suites, Katy

At $5,750,000 across 55 suites this is around $105,000 a key, which is top of the band for extended stay in this metro. The argument for paying it is one word: new.

• Completed in late 2024. Three stories, 29,604 square feet on 1.16 acres.
• Full kitchen in every unit, 80 surface parking spaces, a fitness center, high speed internet throughout.
• Tax assessed value is $4,731,065.

A two year old building means no deferred maintenance and, critically, no property improvement plan waiting for the next owner. In a segment where the PIP routinely runs $8,000 to $25,000 a key, a buyer here is paying up front for a bill they will not receive. On 55 suites that avoided bill can be most of the premium.

Three things I would check before writing an offer

• How long the brand will leave you alone. No PIP today is not the same as no PIP ever. Find out the franchise agreement term, when the first scheduled brand review falls, and what the standards cycle looks like. Two years of runway is worth something. Eight is worth a great deal more.
• Whether a 2024 opening has actually stabilized. A hotel that opened in late 2024 has spent most of its life ramping, which means any trailing figure you are shown includes months that are not representative of the business. Ask for performance month by month rather than annualized, and look for the point where the line flattens. If it has not flattened yet, you are underwriting a forecast, not a record.
• What else is coming in the corridor. The Katy Energy Corridor is one of the strongest suburban hospitality markets in Houston, and strong markets attract supply. New rooms under construction within three miles will meet your rate before they meet anyone else, because you are the newest product until you are not. Pull the pipeline.

Who it fits

• A buyer who would rather pay more today than manage a renovation, and who can see the arithmetic on the avoided PIP.
• An operator with corporate and workforce relationships in the Energy Corridor who can fill full kitchens with long stay demand.

Who it does not fit

• A value buyer. There is no repositioning story here and no discount for effort.
• Anyone underwriting a ramping property as though it were stabilized.

Financing

• Extended stay hotels are eligible for SBA 7(a) and 504 where the buyer will operate the property. Lenders tend to look favorably on the flatter revenue profile and on a new build.
• The lender will want brand approval, the franchise agreement and the trailing financials, and will ask the same stabilization question you should be asking.
• Under the rules effective October 1, 2026 the equity injection is 10 percent of total project cost, and on a special-purpose asset like a hotel a 504 lender can look for 15.

Not a commitment to lend. Subject to lender underwriting. Terms vary by borrower.

Next step

Monthly operating performance, trailing financials and franchise documents are released after a signed NDA is verified.