Younan Properties Sells Holiday Inn in Dallas

Exits Hospitality Industry with $13 mil Sale

• 
  SAVE
• 
  SHARE
• 
  TEXT SIZE
• 
  PRINT
• 
  COMMENT
• 
  PDF

. October 14, 2008

DALLAS, TX, September 20, 2006. With the $13 million sale of the Holiday Inn Select Dallas-North, Younan Properties, Inc. (YPI) has officially exited the hospitality industry, generating a 26% IRR on its hotel sale. The 378-room, full-service hotel at 2645 LBJ Freeway in Dallas was sold to Santa Ana, California-based TOG Hotels.

Bill Stadler, managing director of Molinaro Koger Hospitality Brokerage, who directs the firm's Texas operations from its Dallas office, represented Younan Properties in the transaction. TOG Hotels represented itself.

"We entered Dallas' hospitality market at a very good time, at the tail end of the recession which began in early 2001. We are proud that we were able to out perform one of the largest hotel operators in the world, Wyndham International," commented Zaya S. Younan, Chairman and CEO of Younan Properties, Inc. "To maximize profitability we utilized the same management strategies we employ to enhance operational efficiencies in our office properties. Combining operational 'best practices' procedures and continuous improvements to exceed guest expectations and outperform competitors, we turned around an underperforming property and were able to exit the hospitality industry with great profitability, in order to concentrate on our core business, office properties."

The fast-growing commercial real estate investment firm purchased in the property in April 2004 for $7.7 million and within 29 months of ownership sold the property for $13 million, generating a 26% IRR. YPI also increased hotel revenues by more than $1 million over the past year and posted a 22% increase in operating profit (EBITDA) year to date.

According to Stadler, the key to YPI's success was an eye for creating value. 'Younan Properties did a great job of renovating the hotel in places that had the greatest impact for guests, while also creating long-term value that boosted profitability in a relatively short period of ownership,' he said.

Built in 1980, the six-story Holiday Inn Select Dallas-North is located on the northeast corner of the LBJ Freeway (I-635) and the Stemmons Freeway (I-35), just 12 miles from Dallas Fort Worth Airport and 13 miles from Love Field Airport. On-site amenities include an indoor/outdoor pool, fitness center, 15,000 square feet of meeting and banquet space, a cocktail lounge and business services. Also within the hotel, Zaya's Restaurant offers sophisticated cuisine seven days a week.

"Mr. Younan is an exceptional hands-on executive who gave us his full support and helped us create a first-rate facility for guests," observed Gaye Spradling, Holiday Inn Select Dallas-North general manager and director of sales. "By empowering everyone on our hotel staff - from managers and housekeepers to dishwashers - he created a team with a sense of ownership, that contributed to an impressive bottom line."