We are pleased to invite accredited investors to join us in an exciting investment as we convert the existing Hotel Indigo Galleria Houston to a Tribute Portfolio by Marriott, designed for travelers seeking fresh travel experiences that reflect their own unique individual point of view. Expected to open by summer 2022, this property will capitalize on Marriott’s strong market reputation while satisfying demand in a highly sought-after market.
The Galleria Mall has more than 400 shops, including a new wing of luxury retailers, as well as 50 restaurants. Houston has become a high-end shopping destination, and the hotel is located right in the heart of one of the region’s highest-end malls.
The Galleria draws more than 30 million visitors annually and boasts Houston’s premiere restaurants, office buildings and entertainment options. ADR in the Galleria consistently outperforms the MSA including in 2020, when the ADR penetration was 139.3% against the MSA.
International, entrepreneurial and diverse, Houston has a Theater District second only to New York City with its concentration of seats in one geographic area; a unique Museum District; and more than 500 cultural, visual and performing arts organizations.
Affiliation with a strong, boutique brand backed by Marriott and inclusion in the Bonvoy loyalty program is expected to attract travelers focused on creative spaces that connect people and places. Drawn together by their sense of character, diverse experiences and robust personality, Tribute Portfolio hotels combine spirited independence with Marriott’s powerful global infrastructure.
Houston is the fourth-largest and among the fastest-growing metropolitan areas in the country, with over seven million residents. A mix of industries creates thousands of jobs that make up a local gross metropolitan product (GMP) of $439 billion – a figure that is expected to double by 2040.
The Houston economy continues to transform and diversify due to the tremendous influx of corporations and the resulting highly-skilled workforce. Limited current supply growth (1.5% average supply growth projected through 2025) position the MSA’s market fundamentals for favorable RevPAR growth well into the future. Houston is poised to exhibit a rapid rebound over the near term and surpass prior peak RevPAR levels by 2024.
Houston is home to the largest medical center in the world, which is the 8th largest business district in the country. It has over 50 different institutions with 106,000 employees and 8 million patient visits per year. Three billion dollars in construction projects are underway.
As one of the nation’s licensed spaceports, Houston benefits from $4.5 billion in economic impact annually from aerospace and aviation, with 100+ major employers including Boeing, Lockheed Martin, Brown & Root and Johnson Engineering.
Renewable energy investment since 2014 has totaled $3.7 billion, with increasing focus on the sector. Energy accounts for 4,600+ energy-related establishments and 237,000 jobs. Twenty-five percent of all oil and gas extractions jobs in the country are located in Houston, and 25% of the refining capacity in the country is along the Texas Gulf Coast.
184 non-stop destinations to 37 countries from two local airports. More than 50% of the U.S. population is within a 1,000 mile radius.
Ranked the #1 port in the United States in terms of foreign waterborne tonnage, Houston is home to the largest port in Texas, handling 194.3 metric tons in trade per annum.
Investors are expected to receive distributions on a quarterly basis. For the projected investment hold period of five years, distributions are anticipated as follows (based on a percentage of the investment).
*Hotel under renovation
**Including proceeds from sale