Hodges Ward Elliott (“HWE”) is pleased to present the opportunity to acquire the Element Dallas Downtown East (“Property” or “Hotel”), located directly across the street from Baylor Scott & White’s flagship hospital system at the heart of Dallas’ urban core. Surrounded by millions of square feet of leading medical facilities and nearly 60 million square feet of commercial space within a two-mile radius—home to numerous blue-chip Fortune 500 employers—the Property is within minutes of a major medical campus in the nation’s fourth-largest and fastest-growing MSA. The fee simple offering presents a unique opportunity to own an institutional-quality, select-service hotel in one of the Sun Belt’s most rapidly expanding metropolitan areas.
| Address: | |
| YEAR OPENED: | December 2018 |
| KEYS: | 151 |
| STORIES: | 8 |
| SITE AREA: | ±1.00 Acre |
| MEETING SPACE: | 2,025 SF |
| AMENITIES: |
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| INTEREST CONVEYED: | Fee Simple |
| MANAGEMENT: | Unencumbered |
| LABOR: | Non-Union |
INVESTMENT HIGHLIGHTS
Irreplaceable Location At Dallas’ Urban Core
Strategically located across the street from Baylor Scott & White’s flagship campus, the Property boasts an incredibly unique location amongst an urban core unrivaled with corporate, entertainment, education, and healthcare demand drivers, which continue to expand rapidly.
Proximate To The Largest Medical Center In Dallas
The Element is located two minutes from the Baylor University Medical Center campus, a 914-bed campus adjacent to downtown Dallas that serves as the flagship hospital of Baylor Scott & White Health. As one of the largest healthcare facilities in the country, it accommodates over 300,000 patients each year. The campus has won dozens of awards for its leading services and is sought out by patients around the world.
Robust Corporate Demand
There are nearly 60 million square feet of office space within a two-mile radius of the Hotel, including the headquarters of five Fortune 500 companies—AT&T, HF Sinclair, CBRE, Jacobs, and EnLink Midstream. Additionally, the surrounding office market continues to expand, with 1.9 million square feet of Class-A office space currently under construction.
DALLAS/FORT WORTH ECONOMY - #1 IN JOB & POPULATION GROWTH
The Hotel is centrally located at the heart of the Dallas/Fort Worth Metroplex, which boasts one of the strongest and most insulated economies in the country. Consistently ranked as Forbes’ top business climate, Dallas/Fort Worth continues to attract corporate relocations and new residents (over 415 per day) at an unprecedented rate. In 2023, the Dallas/Fort Worth metro once again led the nation in job growth, adding 139,700 new jobs (outpacing 2nd place New York MSA’s 122,200), leading the U.S. by a wide margin.
Proximate to the 3rd Busiest Airport in the World
The Element is less than 30 minutes from Dallas/Fort Worth International Airport, the third busiest airport in the world based on 2023 passenger traffic of 81.7 million. Consisting of seven runways, 27 airlines, and 260 destinations, the airport is within a 3.5-hour flight to any major destination in the continental U.S. In recent years, the airport has demonstrated tremendous growth, marked by a 8.4% increase in passenger traffic from September YTD 2023 to September YTD 2024.
Additionally, DFW recently initiated the construction of the much-anticipated addition of Terminal F, a $1.63-billion expansion of the hub’s south end that will drive new domestic and international routes through the 15 new gates. American Airlines and DFW also plan to spend another $3.2 billion on other improvements, including renovations and expansion for new gates at Terminals A and C, along with other modernization projects around the airport.
Ascending Operating Performance / Strong Submarket Trends
For December 2024, RevPAR for the Element and the overall CBD/Market Center submarket rose by X.X% and 1.1%, respectively. Dallas continues to thrive as a key economic hub, fueled by its dynamic business environment, growing population, and significant infrastructure investments, including the $1.63-billion expansion of DFW International Airport and the $3-billion renovation and expansion of the Kay Bailey Hutchison Convention Center.
This thriving environment positions the Element to maintain strong momentum and capitalize on the city’s ongoing growth opportunities in the downtown market.
A Fresh Edge - New Vintage Hotel Within The Submarket / Renovation Upside
Opened in December 2018, the Element Dallas Downtown stands out as one of the newest select-service hotels in the Dallas CBD/Market Center submarket, offering a modern alternative in a market dominated by older properties averaging over 40 years in age. As the newest hotel in its competitive set by a significant margin (+24 years), the Property is well-positioned to capitalize on a diverse array of demand drivers fueling the market.
Furthermore, with the Property being just six years old, a new owner can benefit from a guest-facing renovation upon a change in ownership. The pending renovation will allow the Hotel to further cement its superior market position and will be a catalyst for outsized rate growth in the coming years.
Attractive Acquisition Basis
The anticipated transaction price places a new owner’s all-in basis significantly below replacement cost allowing an investor to benefit substantially from a combination of location in a growing economy and upside opportunity.
Optimal Offering - Fee Simple, Non-Union, Unencumbered By Management
The Property is offered fee simple and free and clear of existing management and financing, affording new ownership maximum optionality in the future operation and capitalization of the Hotel.
Marriott Brand Adds Significant Value
The Property benefits from its affiliation with Marriott, the world’s most recognizable and top-performing hospitality brand. Marriott provides centralized marketing, booking, and rewards systems, providing the Hotel with access to 200 million Marriott Bonvoy members. Element by Marriott is a top-tier brand and arguably one of the most valuable franchise brands in the limited-service space in the US. The brand currently has 87 Properties nationwide, along with 20 Properties totaling 2,670 rooms in the US pipeline, demonstrating a high level of growth. In addition, this growth translates to owner confidence in long-term cash-on-cash returns as well as reversion value.
