A Houston-based developer is bringing a nine-story Hilton-branded hotel to downtown Houston.
PA Hospitality, owned by Alif Maredia, secured a $37.4-million loan to begin construction on the dual-branded hotel in the Central Business District, the Houston Chronicle reported. PA will also manage the 221-room property once it’s completed.
Dallas-based Hall Structured Finance provided the loan.
The future hotel site, a parking lot at 1514 Leeland Street, is near the Toyota Center and the George R. Brown Convention Center. The hotel will include rooms under the Tru by Hilton brand as well as extended-stay options under Home2 Suites by Hilton. Extended-stay rooms will span about 400 square feet and include kitchens as well as separate living and sleeping areas.
A shared lobby will serve the two brands, and each will have separate breakfast areas. A bar, meeting space, outdoor pool, fitness center and guest laundry room are also planned.
Brian Mitchell, vice president of Hall Structured Finance, said PA’s proven track record, combined with the downtown location made this investment attractive to lenders.
“Capital markets had closed their doors on most new construction hotels, and it took some time for those doors to open again,” Maredia told the newspaper.
MCS Architects is designing the development, and EE Reed Construction is the general contractor. A ground-breaking is expected by the end of this year with completion estimated in about the third quarter of 2024.
Hotels in Houston had an occupancy rate of 57.4 percent in September, down from just over 60 percent in September 2019, according to STR. Despite that, investors and developers are betting on a recovery, Meredia told the newspaper.
“We expect room rates to definitely be higher in 2024 compared to current rates,” he said. “We have seen strong bookings especially since post Labor day for corporate travel, groups and meetings.”
Read more
Commercial
Texas
Chicago firm has big plans for its first Houston acquisition
— Victoria Pruitt