US-based Jain Hotels Management has purchased TownePlace Suites by Marriott hotel in McKinney, Texas for an undisclosed amount.
The transaction was carried out with Beaumont, Texas-based residential property management firm Pride Management.
Located at 1832 Marketplace Drive, McKinney, the 88-room TownePlace Suites Dallas McKinney hotel was built in 2016.
The four-floor property offers free internet and complementary on-site parking space, as well as boasts on-site fitness centre and outdoor swimming pool.
HVS Brokerage & Advisory team members Eric Guerrero, James Rebullida, and Fadi Rawashdeh took part in the deal.
Jain Hotels Management Neel Jain said: “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.”
The hotel had more than 70% occupancy rate at the time of closing.
According to HVS, Jain Hotels showed interest in purchasing an underperforming, Marriott-branded extended-stay hotel for less than replacement cost.
Ten-X auction platform was used to market and sell the property, which resulted in a purchase price that was 107% of the reserve.
HVS Brokerage & Advisory managing director Eric Guerrero said: “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.”