Hilton College Station Case Study

$46 mm Hospitality Acquisition & Sale – College Station, TX

Hilton Hotel in College Station, Texas

Hilton College Station was acquired by Encore in September 2010. It is a full-service hotel, built in 1985, with 303 rooms and over 25,000 square feet of meeting space. Encore identified the asset from an institutional owner in an off-market transaction at an attractive entry price (approximately 50% to 55% of replacement cost). The company recognized strong demand drivers such as proximity to Texas A&M University (3rd largest public university in the United States) and limited competition, being the only convention center hotel in the city. Encore improved operations through the implementation of new policies and procedures and by integrating the Hilton onto Encore’s proprietary IT platform. The company held Hilton College Station for four years, infused over $4 million in capital in value-add renovations, and exited north of a 35% IRR.