HVS Brokerage & Advisory announces the sale of the 88-key TownePlace Suites by Marriott, located at 1832 Marketplace Drive, McKinney, Texas 75070.
The extended-stay hotel property, built in 2016, was purchased by Jain Hotels Management, based in Tulsa, Oklahoma, from Pride Management Inc., based in Beaumont, Texas.
“We enjoyed working with HVS on purchasing the TownePlace Suites Dallas McKinney. Working with Eric and his team was simple and easy. They were wonderful about staying in constant communication with us from start to finish and ensured that we had a smooth closing. I look forward to working with them again as we grow our Texas portfolio,” commented Neel Jain, Jain Hotels Management.
The property was marketed and sold through the Ten-X auction platform; broadcast to a nationwide audience, it yielded a purchase price that was 107% of the reserve.
Extended-stay hotels have performed significantly better than other hotel types during the COVID-19 pandemic; at the time of closing, this hotel’s occupancy was over 70%. The buyer was attracted to the opportunity to acquire an underperforming, Marriott-branded, extended-stay hotel at below replacement cost and the expected benefit from the anticipated economic rebound in the aftermath of the worst period of the pandemic.
“The extended-stay product and highly desirable Dallas market made this a highly attractive opportunity in the marketplace. We had over twenty unique bidders in the Ten-X auction and were able to exceed the seller’s pricing expectations in a competitive bidding process. We appreciate our long-standing relationship with Pride Management Inc. and wish the buyer success as it expands the hotel’s activity,” said Eric Guerrero, Managing Director of HVS Brokerage & Advisory.
HVS Brokerage & Advisory team members Eric Guerrero, James Rebullida, and Fadi Rawashdeh participated in this transaction.