THM Acquisitions • Tour Brief

Alchemy Houston Hotel Tour

June 10-11, 2026. Four distressed full-service Houston hotels with Joe Cuomo / Alchemy. 1,562 keys total.
Cuomo: jcuomo@alchemyrea.com, (646) 425-5632. Co: Montufar, Clemens, Webster. Prepared 2026-05-26 by Woz. Figures cited inline; trailing-12 unless noted.
The shape of the book: all four are the same trade. Houston full-service hotels in receivership or REO, occupancy is fine but rate is crushed, margins are thin to negative, and each is priced below replacement. This is the HOURP play (buy distressed, fix the bottom line, close the rate gap). DoubleTree Galleria is the only one already throwing off real cash flow and is the anchor. Sheraton IAH, Crowne, and DT Bush are deeper turnarounds. On the tour, the job is to read condition and deferred maintenance, pin down the relicensing PIP on each, and get Cuomo to confirm price and process.
HotelKeysRevPARRevenueNOI marginDeadline
DoubleTree Galleria (H150)476$89.70$19.06M18.5%Offers end Jun
Sheraton Houston IAH (H075)419$68.38$13.8MnegAuction Jun 22-24
Crowne Plaza Med Ctr-Galleria (H155)354$55.76$8.94M6.5%Offers end Jun
DoubleTree Bush / IAH (H156)313$93.30$13.4M3.75%Offers end Jun
Sources: DTG writeup (H150), Sheraton T-12 Mar 2026 P&L (H075), Crowne tear sheet T-12 Mar 2026 (H155), DT IAH writeup T-12 Apr 2026 (H156).

1. DoubleTree Galleria · H150

476 keys • full-service • built 1981 • 5353 Westheimer Rd • bank-owned (Wells Fargo REO via REDUS DHG)
Ready. $30M ask confirmed. Offers end June.
$89.70
RevPAR
$19.06M
Revenue
$3.53M
EBITDA
18.5%
Margin

Our read

The strong one. Revenue ramped from $11.99M (2022) to $19.06M, EBITDA up 88% to $3.53M (DTG writeup). At the $30M ask plus the RS-adjusted PIP of $7.5M to $8.5M, all-in is $37.5M to $38.5M, $79K to $81K per key, a 9%-plus trailing cap with no growth assumed. We have a two-structure teaser built ($30M with seller bridge / $25M cash). This is the priority. Buyable at or near ask.

Verify on site

  • Guestroom and corridor condition vs the Hilton PIP scope
  • F&B and banquet spaces, meeting-room condition
  • Parking and any deferred maintenance

Ask Cuomo

  • Confirm $30M and the call-for-offers date in writing
  • Seller appetite for the bridge / financing structure
  • Hilton PIP estimate and relicensing timeline

2. Sheraton Houston IAH · H075

419 keys • full-service • built 1982, reno 2016 • 15700 JFK Blvd • receivership (Scott Crunk), CMBS Wilmington Trust / DBJPM 2016-C1 • 38,875 SF meeting, 8 acres
Ten-X online auction June 22-24. Tightest clock.
$68.38
RevPAR
$13.8M
Revenue
-$312K
EBITDA T-12
65%
Occ

Our read

Loses money today. T-12 EBITDA is negative $312K (Sheraton T-12 Mar 2026 P&L): GOP is only $1.76M (12.7%), then $580K property tax, $625K insurance, and a $90K rent line eat it. So this does not value on an income cap. It is a below-replacement, fix-the-operations play: 419 full-service keys at maybe $40K to $55K per key (distressed full-service, assumption) is $17M to $23M, with the turnaround as the upside and the negative carry as the risk. The lever is the same as HOURP: GOP at 12.7% should be 25%-plus, which is roughly $1.7M of recoverable NOI on flat revenue. Set a hard max bid before the auction and do not chase. AS-IS, no reps, buyer funds the PIP.

Verify on site

  • Deferred maintenance: a money-losing receivership box is usually under-maintained, walk the back of house and MEP hard
  • The 38,875 SF of meeting space: is it dated, is it booking
  • Condition of the 2016 renovation, what is genuinely 10 years old vs original 1982

Ask Cuomo

  • Why did the Feb 2025 purchase agreement fail to close
  • Ten-X reserve and starting bid once the auction page is live
  • Marriott relicensing window and PIP status (the 2024 Reli-PIP #12006 is likely stale)
  • What is the $90K rent line, is there a ground lease
  • Why is insurance $625K, and the property tax basis and any protest

3. Crowne Plaza Med Center-Galleria · H155

354 keys • full-service • 2712 Southwest Fwy (Greenway/Galleria) • receivership, Midland special servicer (CMBS) • operator GF Hotels • IHG relicensing needed
Launches the week of the tour. Offers end June.
$55.76
RevPAR
$8.94M
Revenue
$585K
NOI (6.5%)
+27.7%
RevPAR YTD

Our read

Thin but positive, and recovering fast (RevPAR up 27.7% YTD 2026, tear sheet). The story is the rate gap: it runs ADR $90 against a comp set at $194, an ARI of 65 (tear sheet). It fills the box (MPI 118.5) and gives the rate away. Lender already put about $6M of renovation in since 2023, which de-risks the capital side. NOI is $585K (6.5%) on $8.94M revenue, so income value is low today; the bet is closing even part of that rate gap on a 354-key full-service box. Apply the HOURP 30-point margin idea to $9M revenue and the uplift is large. Below replacement, HCAD assessed $19.5M. Need the OM and a price.

Verify on site

  • What did the $6M renovation actually cover, what is left (elevator mod was underway)
  • Why the rate gap is so wide: product, management, or segment mix
  • Condition vs an IHG relicensing PIP

Ask Cuomo

  • Asking price or guidance, and is there an OM yet
  • IHG relicensing terms and the PIP
  • Midland (special servicer) motivation and timeline
  • Remaining renovation scope and cost

4. DoubleTree Bush / IAH · H156

313 keys • full-service, currently UN-FLAGGED • built 1981 • receivership ~6 yrs • eligible for DoubleTree relicensing (Hilton), approved PIP-011515
Launches the week of the tour. Offers end June.
$93.30
RevPAR
$13.4M
Revenue
$501K
EBITDA (3.75%)
76.5%
Occ

Our read

Highest RevPAR of the four ($93.30) and the occupancy leader (MPI 121.8), but EBITDA is only $501K (3.75%, DT IAH writeup). It is un-flagged, so value includes a reflag plus the approved Hilton PIP. The rate gap is the lever: ARI 90.9, about a $12 per night ADR gap to the comp set, roughly $1.0M annualized if closed. Same turnaround shape as the others, with a cleaner topline. Watch the active CapEx, there is a YELLOW-TAGGED fire pump motor under AHJ enforcement and two of three chillers due, $352K in flight. Below replacement, unpriced.

Verify on site

  • The yellow-tagged fire pump motor and the chillers, this is a life-safety and code item, see it
  • The un-flagged guest experience, what reflagging to DoubleTree actually requires
  • F&B condition (F&B revenue is down 20% from peak)

Ask Cuomo

  • DoubleTree relicensing terms and the scope and cost of approved PIP-011515
  • Loan payoff or receivership clearing number
  • Fire pump and chiller timeline and who funds it pre-close
  • Asking or guidance and the call-for-offers date
Tour logistics: 4 hotels over June 10-11, schedule TBD with Cuomo. Two are Galleria/Med-Center (DTG, Crowne), two are IAH airport corridor (Sheraton, DT Bush), so cluster by geography. Bring the relicensing PIP question to every stop, it is the swing cost on all four.

Portfolio angle: Cuomo is moving a basket of distressed Houston full-service hotels. If two or more clear at the right basis, this is a Houston full-service roll-up, not a one-off. DTG anchors it.

Folders: Drive / H150, H075, H155, H156. Generated 2026-05-26.