Holiday Inn Express Houston Westchase

Texas Hotel Management

Confidential - April 2026

Part of a Two-Asset Portfolio Refinance

Refinance Request

Holiday Inn Express
Houston Westchase

Westchase Submarket | IHG Branded | 127 Keys | 2018 New Construction

11303 Westheimer Rd, Houston, TX 77077 | Harris County

$7.4M

Loan Request

$776K

TTM Adj. NOI

1.36x

DSCR @ 6.00%

76.3%

LTV (8.0 Cap)

Combined Portfolio (HOUUS + HOURP)

$25.65M

Combined Loan

$3.11M

Combined NOI

1.57x

Combined DSCR

317

Total Keys

Executive Summary

Refinance of Veritex Bank Loan - $7,400,000 at 6.00% / 25-Year Amortization

THM is refinancing a 2018-built Holiday Inn Express at a critical inflection point: TTM NOI has surged 36% to $776K on just $138K of additional revenue, Q1 2026 revenue is up 17.3% year-over-year, and a quantified operating improvement plan identifies $378-658K of additional annual savings. This is the same owner-operator playbook that delivered a 66% NOI improvement on the companion HOURP asset in Year 1.

This credit offers a $7,400,000 first mortgage on a 127-key Holiday Inn Express & Suites at 11303 Westheimer Rd, Houston, TX 77077, refinancing the existing Veritex Bank bridge loan at the 7.5% rate ceiling. The refi alone generates $84K/year in debt service savings before any operational improvement.

Portfolio Relationship. This loan is part of a two-asset, $25.65M refinancing package alongside SpringHill Suites Houston Medical Center (HOURP, $18.25M, 1.61x DSCR). Same operator, overlapping guarantors, combined 1.57x DSCR. One underwrite, two assets, brand and submarket diversification.

The Asset. Built in 2018, this is a 7.5-year-old property with modern building systems, no deferred maintenance, and 30+ years of remaining useful life. At $130K/key replacement cost, the $16.5M replacement value means the lender's $7.4M loan sits at 44.8% of replacement cost. This is also a hard corner on Westheimer Road, one of Houston's highest-traffic commercial corridors.

This opportunity is being presented alongside the companion HOURP asset to a select group of relationship lenders.

Loan Request

Amount$7,400,000

PurposeRefinance VB Loan

Term5-Year Fixed

Amortization25 Years

Rate Target6.00%

Current Balance~$7,401,528

Current LenderVeritex Bank

Current Rate7.50% (at cap)

BorrowerHI Hotels LP

Key Metrics (TTM Mar 2026)

Total Revenue$3,048,442

Adjusted NOI$776,174

NOI Margin25.5%

DSCR @ 6.00%1.36x

LTV (8.0 Cap)76.3%

Replacement Cost LTV44.8%

Q1 2026 Rev. Growth+17.3% YoY

STR Indices (all 3)Above 100

REPLACEMENT COST: $16.5M | 44.8% LOAN COVERAGE

2018 new-construction, 127-key IHG property on a hard corner of Westheimer Road. Replacement cost at $130K/key: $16.5 million. At $7.4M loan, collateral covers 225% of loan proceeds on replacement basis. Hard corner land in the Westchase corridor commands premium valuations, providing additional downside protection independent of hotel operations.

Texas Hotel Management

Owner-Operator Since 1990 | 15 Hotels | Marriott, Hyatt, Hilton, IHG

Owner-Operator Model. Texas Hotel Management was founded in 1990 by Salim Ismail, an engineer who built 6 hotels from the ground up. THM owns and operates 15 hotels / 1,804 keys across Houston, Dallas, and Bryan-College Station under Marriott, Hyatt, Hilton, and IHG flags. THM manages only the assets it owns. The firm has routinely declined third-party management requests to focus operational capacity on its owned portfolio, eliminating the principal-agent misalignment that plagues fee-managed hotels.

Precedent Closings. THM's most recent community-bank hotel refinancing closed at a fixed 6.00% rate on a comparable Hilton-flag extended-stay asset. Active relationships with multiple community and regional banks provide confidence in execution at or near this rate.

Management Fee Commitment. THM self-manages and normally charges 5%. On HOUUS, THM has been taking a reduced fee (~1.3% TTM) to strengthen cash flow during the refinancing period. THM is prepared to subordinate or waive the management fee for the term of the loan.

Portfolio Footprint

Houston Market5 Hotels / 716 Keys

Bryan-College Station6 Hotels / 574 Keys

Dallas-Fort Worth4 Hotels / 514 Keys

TOTAL15 Hotels / 1,804 Keys

PROOF CASE: THE HOURP TURNAROUND (COMPANION ASSET)

THM assumed operations of SpringHill Suites Houston Medical Center on December 26, 2024 from Concord Hospitality. In a normalizing Houston market (-3.8% YoY), THM grew adjusted NOI 34% through expense discipline alone. Revenue grew 9% but NOI grew 66%. DSCR moved from sub-1.0x under the prior operator to 1.70x under THM. The same playbook is now executing on HOUUS, where TTM NOI margin has already expanded from 19.6% to 25.5%.

HOURP 2023 (Concord)

$1.41M

NOI · 23.2% margin

HOURP 2025 (THM)

$2.40M

NOI · 36.4% margin

HOUUS FY 2025

$570K

NOI · 19.6% margin

HOUUS TTM Mar 2026

$776K

NOI · 25.5% margin · +36%

Ownership Structure - HI Hotels LP

Partners

Abbas Ali Hemani50%

ASI Irrevocable Trust (Salim Ismail)49%

Salim Ismail, LLC1%

Guarantor Strength

GuarantorsAbbas Hemani + Salim Ismail

Also guarantors onHOURP ($18.25M)

THM Portfolio15 properties, zero defaults

Property & Market Overview

11303 Westheimer Rd, Houston, TX 77077 | Harris County

Property Details

BrandHoliday Inn Express & Suites (IHG)

Keys127

Year Built2018 (New Construction)

Building Age7.5 Years

ConditionExcellent - No Deferred Maint.

SubmarketWestchase District

ParkingSurface Lot

AmenitiesBreakfast, Pool, Fitness, Laundry

Site & Collateral

LocationHard Corner, Westheimer Rd

CorridorOne of Houston's highest-traffic arteries

Replacement Cost ($130K/key)$16,510,000

Loan / Replacement44.8%

STR MPI (Occ Index)110

STR ARI (Rate Index)105

STR RGI (RevPAR Index)116

Compset PositionOutperforming on All 3

Demand Drivers

★

Westchase District

Major corporate office market with 21M+ sq ft of commercial space. Fortune 500 energy, engineering, and professional services tenants generate consistent midweek corporate travel demand year-round.

▲

Energy Corridor Adjacency

Captures spillover from Houston's Energy Corridor, one of the nation's largest concentrations of energy company headquarters. Projects and shutdowns drive extended-stay demand.

●

Retail & Dining Density

Westheimer / Beltway 8 intersection provides high-visibility positioning with extensive dining, retail, and entertainment options that enhance guest experience vs. isolated competitors.

◆

No New Competitive Supply

No select-service hotel supply under construction in the immediate competitive set. Land costs and construction costs create a natural barrier to new entry in this mature submarket.

Why 2018 New Construction Matters

Unlike older assets requiring renovation capital (the companion HOURP property was built in 1985), HOUUS has modern building systems, current-generation room product, and no structural capex risk. Remaining IHG PIP is ~$600K, largely funded from the $350K VB DSCR reserve already in place. Net out-of-pocket PIP cost: ~$250K. For the lender, this is the simpler collateral story in the two-asset package.

Financial Performance: The Inflection Point

TTM Mar 2026 Shows +36% NOI Growth on +5% Revenue - The Expense Play Is Working

TTM Revenue

$3.05M

+$138K vs FY 2025

TTM Adj. NOI

$776K

+36% vs FY 2025 ($570K)

NOI Margin

25.5%

+5.9 pts vs FY 2025 (19.6%)

Q1 2026 Rev Growth

+17%

Jan +17% | Feb +26% | Mar +12%

Operating Summary

	FY 2025 Baseline	TTM Mar 2026 Current Trailing	Change
Revenue
Room Revenue	$2,836,082	$2,973,530	+$137K
Other Revenue (F&B, Misc)	$74,357	$74,913	+$1K
Total Revenue	$2,910,439	$3,048,442	+$138K
Departmental Expenses
Rooms Division	$932,145	$885,588	-$47K
F&B Expense	$21,482	$19,605	-$2K
Undistributed Operating Expenses
A&G	$281,792	$264,003	-$18K
IT & Telecom	$53,412	$48,379	-$5K
Sales & Marketing	$121,340	$115,018	-$6K
Property Ops & Maintenance	$106,488	$99,770	-$7K
Utilities	$215,850	$201,975	-$14K
Franchise Fees	$346,256	$352,202	+$6K
Unclassified / Unmapped	$14,494	$15,632	+$1K
Fixed Charges
Property Insurance	$178,167	$157,555	-$21K
Property Taxes	$167,853	$167,853	Flat
Management Fee	$60,315	$39,024	-$21K
Net Operating Income
NOI (reported)	$509,552	$737,150	+$228K
+ Mgmt Fee Add-Back	$60,315	$39,024
Adjusted NOI	$569,868	$776,174	+$206K (+36%)
Adj. NOI Margin	19.6%	25.5%	+5.9 pts

Management fee is added back as THM self-manages. Other Income ($52.6K TTM) excluded from NOI for conservative underwriting. Source: QBO actuals via Supabase pl_transactions.

Operating Improvement Plan

22 Identified Actions | $378-658K/yr Recurring Savings | No Employee Pay Cuts

NOI TRAJECTORY: $776K TODAY TO $820-950K BY 2027

THM has completed a forensic P&L analysis identifying 22 discrete savings actions across three phases. These are not aspirational projections. They are quantified, assigned to specific owners, and timed. The conservative midpoint alone takes NOI from $776K to $820K+ and DSCR from 1.36x to 1.43x. Full execution targets NOI of $950K and DSCR of 1.66x.

Phase 1: Quick Wins (Under 30 Days)

$74-112K/yr

TXU duplicate reversal — $14-22K

Owner health premium reclass — $28-31K

Cable service deduplication — $21-42K

Water phantom correction — $6-18K

MECHANICAL. NEAR-CERTAIN.

Phase 2: Medium Wins (30-180 Days)

$95-181K/yr

Property tax protest — $30-62K

CC processor re-quote — $18-35K

F&B menu optimization — $25-45K

Chargeback SOP — $10-14K

Electric contract shop — $12-25K

VENDOR NEGOTIATIONS IN PROGRESS.

Phase 3: Structural (6-12 Months)

$75-140K/yr + NPV

Cost seg catch-up — $300-600K NPV

Insurance re-shop — $30-55K/yr

IHG franchise audit — $12-25K

Housekeeping mix shift — $15-30K/yr

EXTERNAL PARTNERS ENGAGED.

Projected NOI Trajectory

Period	Revenue	Adj. NOI	Margin	DSCR @ 6%	Drivers
TTM Mar 2026 (baseline)	$3,048K	$776K	25.5%	1.36x	Current run-rate
Q4 2026 (annualized)	$3,200K	$860K	26.9%	1.50x	Quick + medium wins landing
2027 Conservative	$3,350K	$820K	24.5%	1.43x	Phase 1 only
2027 Full Improvement	$3,550K	$950K	26.8%	1.66x	All 3 phases + refi savings

THE FIVE MUST-HIT ITEMS (ALONE CLOSE THE GAP)

Property tax protest ($30-62K) + insurance re-shop ($30-55K) + bookkeeping cleanup ($72-108K) + CC processor ($18-35K) + F&B menu ($25-45K). Midpoint: $175-305K/yr. This ALONE takes NOI from $776K to $951-1,081K (31-35% margin) and DSCR to 1.66-1.89x. The improvement plan is not aspirational. It is arithmetic.

Underwriting Summary

DSCR Analysis | Valuation | Debt Service Savings | Deal Structure

DSCR - TTM Mar 2026

1.36x

$776K NOI / $572K DS

@ 6.00% / 25yr amort.

DSCR - 2027 Projected

1.43x

$820K NOI / $572K DS

Conservative (Phase 1 only)

DSCR - Current VB Loan

1.18x

$776K NOI / $656K DS

@ 7.50% current rate

$84,085

Annual DS Savings

7.50% to 6.00% rate improvement

44.8%

Replacement Cost LTV

$7.4M loan / $16.5M replacement

10.5%

Debt Yield

$776K NOI / $7.4M loan

2018

Year Built

7.5 years old, 30+ yr remaining

DSCR Sensitivity (TTM NOI $776K)

Rate	Monthly P&I	Annual DS	DSCR
6.00%	$47,678	$572,140	1.36x
6.25%	$48,816	$585,786	1.33x
6.50%	$49,965	$599,584	1.29x
Current VB (7.50%)			1.18x

Current vs. Proposed

	Current	Proposed
Rate	7.50%	6.00%
Annual DS	$656,224	$572,140
DSCR (TTM)	1.18x	1.36x
Annual Savings		$84,085
5-Year Total Savings		$420,425

Borrower: HI Hotels LP

Abbas Ali Hemani (50%) - Limited Partner
ASI Irrevocable Trust / Salim Ismail (49%) - Limited Partner
Salim Ismail, LLC (1%) - General Partner
Both principals also guarantors on HOURP ($18.25M)
THM: 15 properties, zero defaults

Implied Valuation & LTV

Approach	Value	LTV
8.0 Cap on TTM NOI ($776K)	$9,702,000	76.3%
8.0 Cap on 2027 NOI ($820K)	$10,250,000	72.2%
8.0 Cap on Improved NOI ($950K)	$11,875,000	62.3%
Replacement Cost ($130K/key)	$16,510,000	44.8%

Existing Debt

Lien	Balance	Rate
Veritex Bank (1st lien)	$7,401,528	7.50%
SBA EIDL	$487,382	3.75%
VB DSCR Reserve (lender-held)	$350,593	Returns at payoff

Combined Portfolio (HOURP + HOUUS)

Combined Loan$25,650,000

Combined NOI$3,106,412

Combined DS @ 6%$1,983,460

Combined DSCR1.57x

Total Keys317 (190 + 127)

Brand DiversificationMarriott + IHG

Refinance Timeline

Aligned with Companion HOURP Asset for Simultaneous Close

Apr 2026

Finalize
both packets

May 2026

Send to
target banks

Jun-Jul 2026

Term sheets
& selection

Jul-Sep 2026

Appraisals
& underwriting

Nov 2026

Close &
fund both

SIMULTANEOUS CLOSE ADVANTAGE

One lender, one underwriting process, one legal team, one guarantor package. The lender underwrites two assets in a single engagement, reducing cost and time for both parties. Combined $25.65M relationship with 1.57x portfolio DSCR.

Why This Credit Works

1. Modern Collateral

2018 new construction on a hard corner of Westheimer Road. No deferred maintenance, no structural capex. Replacement cost LTV of 44.8% provides exceptional downside protection.

2. Accelerating Performance

Q1 2026 revenue +17.3% YoY. TTM NOI margin expanded 5.9 points (19.6% to 25.5%). All three STR indices above 100. The property is outperforming its compset and improving every quarter.

3. Proven Operator

THM delivered +66% NOI improvement on the companion HOURP asset in Year 1. The same playbook is executing on HOUUS with the same discipline. 15-hotel, 1,804-key portfolio with zero defaults.

4. Quantified Upside

22 identified improvement actions with $378-658K/yr of recurring savings. The refi itself generates $84K/yr in debt service savings on day one. Conservative projected DSCR of 1.43x.

5. Portfolio Relationship

$25.65M combined loan, 317 keys, two brands (Marriott + IHG), two submarkets, 1.57x combined DSCR. One underwrite gives the lender a diversified, operator-managed portfolio relationship.

6. Favorable Rate Environment

Moving from VB's 7.50% ceiling to 6.00% creates immediate value. THM's most recent community-bank closing was at 6.00% on a comparable asset. The precedent is established.

Loan Request

$7.4M

TTM DSCR

1.36x

Repl. Cost LTV

44.8%

Portfolio DSCR

1.57x