HOUSTON, TX, October 26, 2021: HVS Brokerage & Advisory announces the portfolio sale of the 85-key Courtyard by Marriott Galveston, located at 9550 Seawall Boulevard, and the adjacent 88-key TownePlace Suites by Marriott Galveston, located at 9540 Seawall Boulevard, Galveston, Texas 77554.
The properties, built in 2013, were purchased by Houston-based Vortexa Cytp LLC from Argentic Services LP, a special servicer, based in Plano, Texas. The hotels were marketed as lender-owned (REO) assets, previously encumbered by CMBS debt, but ownership was transferred over to the special servicer in January 2021.
The properties benefit from their irreplaceable locations along the Galveston Seawall, near a multitude of tourism and leisure attractions, including the beaches, Pleasure Pier, Moody Gardens, Galveston Island Convention Center, and Schlitterbahn Galveston Island Waterpark. Special events also typically play a role during key weekends, such as Mardi Gras and Dickens on the Strand.
The purchaser was attracted to the significant upside of acquiring well-maintained, Marriott-branded, high-quality physical products at a price significantly below replacement cost. The properties are situated atop a shared parking garage and share a resort-like swimming pool and outdoor bar area.
Given the wide distribution of the COVID-19 vaccines, domestic drive-to leisure markets experienced a robust rebound this past summer, and both assets achieved record-breaking revenues given the return of leisure travelers.
“By utilizing a broad public national marketing campaign and a competitive bid process with 17 rounds of offers, we generated strong results for Argentic. The final sales price exceeded the original pricing guidance by over 15%. The buyer made a significant, non-refundable earnest-money deposit on the first day of the PSA, and the transaction closed within 60 days,” 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.
Media Contact:
Lizzette Casarin
Marketing Director
[email protected]
+1 (720) 244-7620
The properties, built in 2013, were purchased by Houston-based Vortexa Cytp LLC from Argentic Services LP, a special servicer, based in Plano, Texas. The hotels were marketed as lender-owned (REO) assets, previously encumbered by CMBS debt, but ownership was transferred over to the special servicer in January 2021.
The properties benefit from their irreplaceable locations along the Galveston Seawall, near a multitude of tourism and leisure attractions, including the beaches, Pleasure Pier, Moody Gardens, Galveston Island Convention Center, and Schlitterbahn Galveston Island Waterpark. Special events also typically play a role during key weekends, such as Mardi Gras and Dickens on the Strand.
The purchaser was attracted to the significant upside of acquiring well-maintained, Marriott-branded, high-quality physical products at a price significantly below replacement cost. The properties are situated atop a shared parking garage and share a resort-like swimming pool and outdoor bar area.
Given the wide distribution of the COVID-19 vaccines, domestic drive-to leisure markets experienced a robust rebound this past summer, and both assets achieved record-breaking revenues given the return of leisure travelers.
“By utilizing a broad public national marketing campaign and a competitive bid process with 17 rounds of offers, we generated strong results for Argentic. The final sales price exceeded the original pricing guidance by over 15%. The buyer made a significant, non-refundable earnest-money deposit on the first day of the PSA, and the transaction closed within 60 days,” 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.
About HVS Brokerage & Advisory
The Brokerage & Advisory division is a specialized group within HVS that offers services related to investment sales and capital markets, focused exclusively on the hospitality industry. With a global footprint and over 40 offices nationwide, HVS’s hospitality intelligence and extensive expertise will help you achieve the results you want.Media Contact:
Lizzette Casarin
Marketing Director
[email protected]
+1 (720) 244-7620