Hyatt Place vs Courtyard Lake Pointe

1. The assets

Same submarket, same brand tier (Upscale select-service), both fee simple and unencumbered. The Courtyard is 7 years newer and 79 keys smaller.

2. Performance: occupancy hero vs rate hero

The Hyatt Place runs higher occupancy but much lower rate. The Courtyard wins RevPAR almost entirely on ADR (about 29 dollars higher in 2025), the classic newer, smaller-box rate-integrity advantage. Both fell about 14% on RevPAR in 2025.

2025 RevPAR change: Hyatt Place down 14.1% (96.33 to 82.95), Courtyard down 14.5% (114.91 to 98.23). Then they split: the Courtyard held in TTM early 2026 ($98.23 to $98.93), the Hyatt Place kept sliding ($82.95 to $81.35, and only $75.7 on calendar YTD through April per the STR 2026-04 file).

3. Profit: the smaller hotel now earns more

NOI is after management fee and after the FF&E reserve, the lender and appraiser basis. In 2024 the larger Hyatt Place earned more total NOI. In 2025 and into 2026 the smaller Courtyard out-earned it on absolute dollars, and ran a 7-point higher margin throughout.

Note the HP TTM figure is a full-year 2026 forecast (HP OM p36); the CY figure is a trailing-twelve actual through March 2026 (CY OM p48). Both represent current run-rate.

4. Independent check: Texas tax receipts ($/key/day)

State-filed tax receipts (room plus ancillary, so levels run above pure RevPAR; trends track it). This is the independent read that does not rely on either broker's numbers. It confirms the split: the Courtyard recovered in Q1-2026 while the Hyatt Place kept falling.

5. Stabilized pro forma (each broker's case)

Both OMs project a renovation-led recovery. They land at similar absolute stabilized NOI, but the Courtyard reaches it on 79 fewer keys, so its stabilized NOI per key is far higher.

6. What each can finance, and value reference

Both are unpriced. The table below is what a 1.4x DSCR supports at 65% LTV and a 7.0% interest-only rate (all three are assumptions, the NOI inputs are sourced). The DSCR test caps price at these levels; more equity lets a buyer pay more.

Inputs: DSCR price = NOI / (1.4 × 0.65 × 0.07). 2025 NOI from HP OM p36 and CY OM p48. Stabilized NOI from HP OM p37 ($2,618K) and CY OM p48 ($2,352K). Replacement at $223,378 per key (HVS 2025 select-service U.S. median, memory) times keys. CY assessment from CY OM p48 footnote. DSCR terms (1.4x, 65% LTV, 7.0% interest-only) are assumptions.

The read

• Two doors down, both for sale, different brokers. JLL has the Hyatt Place, HWE (Austin Brooks) has the Courtyard. Different owners reading the same Sugar Land peak independently. The standout move is the roll-up: one buyer takes both, controls about 349 keys on that corner, and ends the next-door rate competition against the SLB, ChampionX, and hospital demand base.
• The Courtyard is the cleaner, easier asset. Newer (2017 vs 2010), higher ADR ($136 vs $107 in 2025), higher margin (27.4% vs 20.1%), and in 2025 it out-earned the bigger Hyatt Place on absolute NOI ($1,482K vs $1,384K). It is the lower-risk hold and will be priced like one.
• Adjust for size before crowning it. A 135-key hotel sells out more easily and protects rate better than a 214-key box, so higher per-key revenue is partly the expected size effect, not pure quality. The signal that survives the size correction is the 2026 split: both fell about 14% in 2025, but the Courtyard held in 2026 while the Hyatt Place kept sliding on a self-inflicted rate push (occupancy down, rate up).
• The Hyatt Place is the contrarian turnaround. Bigger, cheaper per key, and a depressed 20% margin to recover toward its own 29% (2024) and the Courtyard's 27%. Every recovered margin point is worth more on 214 keys. The bet is that the early-2026 occupancy break is a fixable rate-strategy error, not permanent share loss.
• Neither finances off trailing numbers. At a conservative 1.4x DSCR, trailing NOI supports only about $22M to $23M for either. Anything near the brokers' likely whispers (high 20s to mid 30s) is a bet on the pro forma recovery, funded by equity until it shows up.