Upper Midscale Hotel, Texas

At $8,500,000 this is a confidential upper midscale hotel sale in Texas. The page is thin on purpose, so the useful thing to talk about is the segment, and upper midscale is a segment that people consistently misread.

• It carries a recognizable national brand, free breakfast, a pool and a fitness room, which means real brand standards and real cost to meet them.
• It does not carry a restaurant, banquet space or meaningful food and beverage, which is why it survives downturns better than full service does.
• The money is made on cost discipline and on the reservation system delivering heads in beds, not on pushing rate.

Three things I would check before writing an offer

• The room count, because the price means nothing without it. At 80 keys, $8,500,000 is about $106,000 a key, which is a premium. At 140 it is about $61,000, which is ordinary. Every lender and every competing buyer will frame it that way, so you should frame it that way from the first phone call.
• The property improvement plan, and the clock on it. Upper midscale brands run prototype refreshes on a schedule and a change of ownership triggers the review. Ask what the current agreement term is, when the next brand review falls, and what the brand has already told the present owner. An owner who has been quietly deferring a PIP is selling you their deadline along with their hotel.
• What the demand actually is. Upper midscale fills on a mix of corporate transient, leisure and group overflow, and those three react very differently to a soft year. Ask for the segmentation and the top accounts. A hotel carried by one employer in one industry is priced as though it were diversified until the day it is not.

Who it fits

• An owner-operator or a small group that already runs branded select service and knows what the flag costs to keep.
• A buyer with the balance sheet to fund the improvement plan without it becoming the whole story.

Who it does not fit

• A passive investor. Select service at this size still needs an owner who reads the labor report every week.
• A buyer who treats the asking price as a per key number without knowing the keys.

Financing

• SBA 7(a) and 504 both fund owner-operated hotels, and at this size most buyers end up in a 504 structure or a conventional loan with an SBA piece.
• The lender will want brand approval, the PIP estimate and the trailing financials before anything else moves.
• 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

The flag, the location, the room count, the operating numbers, the trailing financials and the franchise documents are released after a signed NDA is verified.