warning Tax delinquency: $24,500 owed. Title search required before close.
trending_down Revenue decline >20% YoY in latest period
timer Abatement expiring within hold period — tax step-up risk
info Open appeal pending — potential refund or value reduction
Acquisition Intelligence
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Marriott Houston Galleria
Underwriting Phase

Marriott Houston Galleria

location_on 2350 West Loop South, Houston, TX 77027

Distress Score

See Breakdown Below

Assessed Value

$14.2M

FY2024 Final

Tax as % of Revenue

3.2% TTM

Target range: <4.0%

Effective Tax Rate

2.4% Net

Harris County

TTM Taxable Receipts

$6.7M ↑ 4.2%

YoY Comparison

STR & Asset Profile

#47221-TX

Houston, TX

Galleria / Uptown

Upscale

Marriott

Marriott International

Aimbridge Hospitality

Host Hotels & Resorts

284 Keys

Nov 2011

5-Year Tax Liability Projector

Year Best Case Assessed Expected Assessment Worst Case Assessed Est. Annual Tax Bill
Year 0 (Current)$14,230,000$14,230,000$14,230,000$343,654
Year 1 (Post-Close)$15,050,000$16,125,000$21,500,000$389,418
Year 2$15,501,500$17,253,750$22,145,000$416,678
Year 3$15,966,545$18,461,512$22,809,350$445,845
Year 4$16,445,541$19,753,818$23,493,630$477,054
Year 5 (Exit)$16,938,907$21,136,585$24,198,439$510,448

Note: Harris County uses income approach for hotels. Sale price is evidence but not conclusive. Typical reassessment lag: 12-18 months post-close. Millage rate assumed constant at 0.02415.

Exemptions & Abatements

Harris County TIF-15 YEAR 8 / 15

Expires Dec 2031. 50% Tax Increment Capture.

CRITICAL: TIF-15 expires Dec 2031 — tax bill increases ~$115k/yr at expiration.
PILOT: Convention Support PERPETUAL

Asset qualified via Chapter 380 agreement.

domain

MUD & Special District Status

Property in MUD #123

MUD taxes are billed separately from county/city assessments.

Annual MUD Liability $12,000 / yr

*MUD taxes are separately contestable via district board.

Revenue Trend — YoY Comparison

Monthly Taxable Receipts

Comparison of Current Fiscal vs. Prior

+$274k (4.2%)

TTM vs Prior TTM

JAN
FEB
MAR
APR
MAY
JUN
JUL
AUG
SEP
OCT
NOV
DEC
Current Year Beats Prior
Current Year Trails Prior

HCAD Income Approach Panel

Metric Assessor Assumed Actual (SIFT Verified) Variance
Occupancy68%58%-10 pts
Net Operating Income (NOI)$1,400,000$1,100,000-$300,000
Cap Rate8.0%8.0%Flat
Implied Property Value$17,500,000$13,750,000-$3.75M Delta
savings

Appeal opportunity: assessor overstates occupancy by 10 pts.

Estimated savings: $42,000 / yr

Submarket Percentile Panel

TTM Revenue62nd
RevPAR71st
YoY Growth45th
Distress Rank12/38 hotels

Ownership Timeline

Noble Investment

2011 - 2018

$6.2M Peak

Host Hotels

2018 - Present

$6.9M Peak

Under Contract

Est. Q4 2024

flag

Recent ownership change — prior operator revenue may not reflect stabilized run rate.

Seasonality Advantage Chart

12-Month Index vs. Submarket Median

Trough
JANJUNDEC

Trough Months (Dec-Feb)

Trough Stability: HIGH

Distress Score Breakdown

Revenue Decline Severity
Consecutive Declining Months
Distance from Submarket Median
Delinquency Flag
Data Completeness

Aggregate Signal: HIGH RISK

FF&E Personal Property Tax

Rendered

$840,000

Assessed

$1,120,000

Taxable

$1,120,000

construction

Post-PIP Renovation Impact

Renovation will increase FF&E rendered value. Budget $8,000/yr additional liability starting Year 2.

Open Appeals Status

FY2023 - Formal Hearing

Grounds: Unequal Appraisal

PENDING

FY2022 - Settlement

Refund: $42,180 (Arbitration)

CLOSED
notification_important

No protest on file for FY2024

Estimated day-one appeal savings: $35,000/yr

Detected Brand / Flag Changes

Holiday Inn Express → Marriott Sep 2023 (reflag)

Changes detected via tax filing diffs. Historical changes prior to Jan 2022 may not be tracked.