DoubleTree by Hilton Hotel & Suites Houston by the Galleria
Houston Galleria / Greenway submarket · STR# 10057 · Built 1981 · Upscale class
What RevPar Pro Tells Us About This Asset Powered by RevPar Pro · SIFT + HCAD primary sources
REO Carry Duration
4+ years
REDUS DHG owner since 2022-04 per SIFT taxpayer chain
HCAD Assessed Value
$36.17M
Acct 1168840000003 · tax protest filed 2025-04-21
SIFT TTM Receipts
$15.44M
Texas Comptroller chain, period 2025-01 to 2025-12
RPP RevPAR (SIFT)
$88.84
Cross-validates STR $89.70 within 1%
Why this matters: RevPar Pro tracks property ownership through Texas Comptroller SIFT taxpayer chain. The chain confirms REDUS DHG has been the owner of record since April 2022, a four-year REO carry across two successive taxpayer entities (post a 2024 internal restructure). The carry duration combined with an active tax protest and the SIFT-receipt-versus-assessed-value pattern is consistent with a lender ready to exit at the right structure.
Our Position: Two Structures
We are prepared to acquire DTG under either structure below. We strongly prefer Structure A. The higher headline price is enabled by, and contingent on, the seller's continued participation. Specific term details available on the introductory call.
Structure A · Preferred
$30,000,000
Full asking price with seller bridge financing for the term required to stabilize and refinance to permanent debt. Seller stays in a performing senior position at fresh basis, backed by a credentialed Houston owner-operator. Recovery face exceeds any market-clearing cash bid.
Structure B · Alternative
$25,000,000
Clean cash takeout at THM's basis threshold absent seller participation ($5M / 16.7% below Structure A). Faster close, no seller post-close exposure. Available if the seller declines the bridge structure.
Who We Are
Texas Hotel Management. 36 years operating · 15 hotels / 1,804 keys · zero defaults · family owner-operator.
Owner-operator structure: no third-party management fee drag. Most recent reference financing: 6.00% on a Hilton-flag refinance.
Recent Comparable: HOURP Turnaround (Dec 2024 acquisition, 190 keys)
| Period | Adj NOI | Margin |
|---|
| Hotel Equities 2023 (prior op) | $1,407K | 23.2% |
| THM 2025 actual | $2,404K | 36.4% |
| THM TTM Mar 2026 | $2,648K | 38.2% |
+33% Year-1 NOI through expense discipline alone, in a softening Houston market (market RevPAR -8.25% YoY). Realized actuals, not projections.
Why Structure A Wins for the Seller
|
Day-1 Cash to Seller |
Ongoing Note Income |
Total Face Recovery |
Time to Exit |
| Structure A (Preferred) |
$4.5M |
7.00% on $25.5M for 24-36 mo |
$30.0M + interest |
CMBS takeout at stabilization |
| Structure B (Clean Cash Takeout) |
$25.0M |
— |
$25.0M |
At close |
Structure A details per `acquisition-packet/01-story.md`: $25.5M senior seller note, 7.00% interest, 25-year amortization, 36-month balloon, full recourse to THM guarantors. Structure A debt service $2.16M/yr, in-place DSCR 1.63x (TTM Mar 2026 NOI / annual DS). Structure B price per `deal-brief.md` §Indicative Bid Range.
Structure A delivers $5M / 20% more face to the seller than Structure B, plus 24-36 months of 7% interest income on the note balance. The seller stays in a performing senior position during the period THM closes the operating margin gap (current 18.5% to a stabilized 30%+ under owner-operator playbook proven on HOURP). At stabilization the note refinances to permanent debt and the seller exits at par. This is structurally better for the seller than any clean-cash bid, and beats waiting on the auction-clear alternative (typical hotel REO auction outcomes clear below book; specific REDUS comp data available for the introductory call).