HOUSTON—(Realty News Report) — CBRE has arranged financing for the acquisition of the Hotel Indigo Houston at the Galleria, a 131-room property situated in Houston’s Uptown submarket. The financing was secured on behalf of the buyer, Driftwood Capital, a Miami-based commercial real estate firm.
Constructed in 2001 and renovated in 2009, the Hotel Indigo is located at 5160 Hidalgo Street, between Sage Road and the Gerald D. Hines Waterwall Park.
Olga Lepow and Mark Owens from CBRE’s Capital Markets Debt & Structured Finance teams in Houston and New York arranged a bridge loan through Stone Beach Capital.
“The tourism and business demand within this cosmopolitan neighborhood will allow us to realize meaningful investment returns while delivering a newly renovated, modern hotel to the community,” said Carlos J. Rodriguez Sr., CEO of Driftwood Capital.
“Because of the asset’s prime location, the strength of the sponsor, and Driftwood’s management experience, we were able to secure favorable loan terms,” Lepow added. “This outcome positions the property for long-term success.”
The Hotel Indigo at the Galleria is one of seven hotel properties Driftwood Capital owns or manages in the Houston area.
Hotels Rebounded From the Covid Downturn
The Houston hotel market has recovered substantially since the severe downturn caused by the COVID-19 pandemic in spring 2020. In April 2020, Houston’s hotel occupancy rate dropped to 23.9 percent, compared with 63.8 percent in April 2019, according to STR, the hotel research firm.
During that period, the average daily room rate in Houston fell 42.6 percent to $59.31, and RevPAR (revenue per available room) plunged to $14.15, a decline of 79.2 percent from 2019. From those lows the market began a gradual recovery driven by returning demand from leisure and business travel.
Jan. 6, 2022 — Realty News Report. All rights reserved.
Book recommendation: Houston 2020: America’s Boom Town – An Extreme Close Up by Ralph Bivins. Available in print and ebook editions.
Photo: Courtesy Driftwood Capital
File: CBRE Arranges Acquisition Financing