CDC Houston acquires Houston City Place Marriott

HOUSTON — CDC Houston, a subsidiary of New York City-based Coventry Development Corp., has acquired the majority stake in the 337-key Houston City Place Marriott from San Antonio-based Affinius Capital and Dallas-based Woodbine Development Corporation for an undisclosed amount.

The hotel was owned by a joint venture of Affinius (formerly the real estate investment arm of San Antonio-based USAA) and Woodbine Development. CDC Houston bought the 50% stake owned by Affinius and 45% of the stake owned by Woodbine (which was the asset manager for the property and will keep a 5% stake in the hotel). Plano, Texas-based Aimbridge Hospitality will continue to operate the property. CDC Houston assumed the hotel’s existing loan.

The Houston City Place Marriott is one of the top-performing full-service hotels in the North Houston submarket. It is part of the 2,000-acre City Place mixed-use development, which was developed by CDC Houston.

The acquisition makes CDC Houston the majority owner of all three hospitality assets in the City Place development. In late 2022, Coventry Development Corp. acquired a 90% stake of the 128-key Residence Inn Houston City Place and 125-key Courtyard Houston City Place hotels.

According to CoStar, of the top 25 markets in the U.S., Houston ranks 17^th in occupancy (65.8%), 25^th in ADR ($121.12) and 22^nd in RevPAR ($79.69). Houston also has the 13^th biggest pipeline of hotel rooms, according to CoStar data. Of the top four Texas markets (including Austin, Dallas and San Antonio), Houston is 3^rd in occupancy ahead of San Antonio but trails the other three markets in both ADR and RevPAR.

The Houston City Place Marriott opened in October 2018. There are no renovations currently planned for the hotel.

“The Houston City Place Marriott is a wonderful asset that continues to achieve success as a hub for corporate travel, visitors, locals and groups – and an increasingly beautiful backdrop for weddings and other outdoor events,” Warren Wilson, executive vice president of CDC Houston, said in a news release. “Our new role as majority owner reflects our long-term commitment to City Place and realizing our vision for an exceptional, sustainable community.”