HOUUS Financial Review

Holiday Inn Express & Suites Houston Westchase Westheimer · 127 rooms · seller presentation prep
Generated June 22, 2026. Source: RevParPro Supabase pl_transactions (property_code = HOUUS), raw QBO actuals, both years tie to Net Income. Recast figures: THM vault lender-packet artifacts (paths in footnotes).

The purpose of this page is to decide what HOUUS financials can honestly be presented to a broker. The short version: calendar 2025 is the weak year, so lead with the trailing 12 months instead, take only the add-backs that hold up, and fix two booking issues first.

1. The three pictures

FY2024 (raw)
$781,497
NOI · 22.9% margin
Revenue $3,404,860
FY2025 (raw)
$451,024
NOI · 15.5% margin down 42%
Revenue $2,910,439 down 14.5%
TTM through Mar 2026 (recast)
$722,409
Adjusted NOI · 23.7% margin recovered
Revenue $3,048,442

FY2024 / FY2025 NOI and revenue: pl_transactions, summed by account per year. TTM recast NOI $722,409: vault THM/lender-packets/HOUUS/02-numbers.md (reported class-filtered NOI $683,386 plus management fee add-back $39,024).

Why this matters: the 2025 calendar year straddles a revenue dip. If a broker sees only FY2025 cold, the story is a hotel that lost 14.5% of its revenue and nearly half its profit. The trailing twelve months through March 2026 shows revenue back near 2024 levels and a 23.7% margin. Same hotel, much better and entirely truthful framing.

2. Year over year, what moved

LineFY2024FY2025Change
Rooms revenue3,346,2162,836,083-510,133
Other revenue58,64574,357+15,712
Total revenue3,404,8602,910,439-494,421
Rooms department expense884,688888,598+3,910
Departmental profit2,520,1722,021,841-498,331
Undistributed operating (6xxx)1,291,0951,164,484-126,611
Gross operating profit1,229,077857,357-371,720
Property tax, insurance, benefits, mgmt fee447,580406,333-41,247
Net operating income781,497451,024-330,473

All figures pl_transactions. The decline is a revenue problem (rooms revenue down $510,133), not a cost blowout: expenses actually came down. That is the honest read, and it is why the recovery in the trailing months is the right thing to show.

3. Recast bridge: raw to defensible NOI (FY2025)

Each adjustment is flagged by how well it would survive a buyer's accountant pulling the tax return.

SOLID defensible add-back   CAUTION judgment call, do not assume   MUST-FIX correct before anything goes out

StepAmountRunning NOIFlag
Raw whole-hotel NOI451,024base
Re-add 2025 payroll taxes (booked at $0)-59,133391,891MUST-FIX
Management fee left out (presented before mgmt fee)+60,315452,206DECISION
Genuinely owner-discretionary (auto, travel, memberships)+5,000 (est.)457,206SOLID
Health insurance, staff meals, comp F&B (owner-tagged but real costs)leave in457,206KEEP
Corporate overhead allocation (THM class)leave in457,206KEEP
Defensible FY2025 NOI before management fee457,20615.7% margin

Raw NOI, payroll tax, owner/corporate class detail: pl_transactions class field. Existing $591,165 recast: vault THM/lender-packets/HOUUS/02-numbers.md and 2026-06-14 HOUUS Packet Reactivation and Recast Math.md.

The treatment, locked:
  1. Management fee: left out (Ace decision, sale, 2026-06-23). The $60,315 self-managed fee is not deducted, and the figure is presented as "NOI before management fee." This is a clean, transparent way to show it: the buyer applies their own management fee assumption. It must be labeled that way on the package so it is not mistaken for a fully-loaded NOI.
  2. The owner-tagged operating costs stay in. Health insurance ($30,613), staff meals ($9,448), and comp breakfast ($3,094) are tagged owner-class in the data but they are real, recurring costs of running the hotel, so they are kept as expenses. This is what keeps the number defensible. The older $591,165 recast that excluded these is not the number we lead with.
Defensible FY2025 NOI before management fee is $457,206 (estimate: raw $451,024 minus payroll tax $59,133 plus management fee left out $60,315 plus owner-discretionary $5,000). That is a 15.7% margin, barely above raw, because the payroll-tax correction nearly cancels the management-fee add-back. So FY2025 calendar is not the year to lead with. Lead with the trailing twelve months ($722,409 before mgmt fee, 23.7%, pending the payroll-tax correction noted below), which carries the recovery and a clean margin.

4. Must-fix before any package goes out

1. 2025 payroll taxes booked at $0. They were $59,133 in 2024. Payroll taxes do not disappear, this is a classification gap. Leaving it in overstates 2025 NOI by $59,133 (the 2024 level, acct 6115) and is the single fastest way for a buyer's accountant to lose trust in the whole package. Correcting it lowers NOI, but it is non-negotiable. The same gap sits inside the trailing-12-month window for the 2025 months it covers, so the $722,409 TTM figure carries the same overstatement and needs the per-month correction confirmed before it is final (the affected amount is an estimate of the nine 2025 months at the 2024 monthly payroll-tax level, to verify). Source: pl_transactions acct 6115.
2. $52,105 interest income in 2025 (acct 8110). Up from $1,791 in 2024. This is non-operating and must be stripped out of any NOI figure. A buyer underwrites operations, not your cash balance. Source: pl_transactions acct 8110.
3. Comparability flags (note them, do not hide them): depreciation is $0 in 2025 vs $192,769 in 2024 (not yet booked, affects net income not NOI); a $77,425 "OFFSET" elimination entry appears in 2024 only (confirm it is not double-counting); and owner-class tagging is far more complete in 2025 than 2024, so 2024 add-backs are under-supported in the data. Source: pl_transactions.

5. Recommendation

DecisionRecommended
Headline periodTrailing 12 months through March 2026 ($3,048,442 revenue, recast NOI $722,409), with FY2024 and FY2025 shown beneath for trend
Management feeLeft out. Present every NOI figure as "NOI before management fee" so the buyer applies their own fee (Ace decision, sale, 2026-06-23)
Add-backs to takeManagement fee left out (per above), plus genuinely owner-discretionary items only. Keep health insurance, staff meals, and comp F&B in as operating costs
Fix before sendRe-add 2025 payroll taxes (also inside the TTM window), strip 2025 interest income, footnote the depreciation and OFFSET items
Package contents (same as Minh)Dec 2024 + Dec 2025 STR, latest 2026 STR, 2024 + 2025 year-end financials, plus the recast summary built on the rules above
Full P&L detail, every line, both years (click to expand)

Revenue

AcctLineFY2024FY2025
4110Room Revenue - Business3,301,1832,804,806
4140Room Revenue - No Show42,33230,786
4150Room Revenue - Cancellation7,876490
4190Room Revenue - Rebates(5,175)0
Rooms revenue3,346,2162,836,083
4220Meeting Space Revenue12,82611,003
4230Market Revenue42,81934,439
4240Guest Laundry Revenue0(54)
4290Miscellaneous Revenue3,00028,969
Total revenue3,404,8602,910,439

Rooms department expense

AcctLineFY2024FY2025
5111Front Office Manager Wages36,95043,457
5112Executive Housekeeper Wages39,18241,208
5113Housekeeping Supervisor Wages35,53420,898
5121Front Desk Wages109,923107,841
5122Night Audit Wages34,63910,154
5131Room Attendants Wages208,213206,862
5132Breakfast Attendants Wages28,81632,785
5133Housemen Wages(30,184)17,309
5134Laundry Wages26,11421,504
5141Guest Supplies34,44339,723
5142Comp F&B126,694126,591
5151Cleaning Supplies26,94331,306
5152Laundry Supplies13,73414,346
5153Linens & Terry18,71219,764
5161Travel Agency Commissions57,49249,789
5162OTA Commissions84,96683,929
5230Market Expense31,70920,307
plus smaller lines (5140, 5163, 5240)807823
Total rooms dept expense884,688888,598

Undistributed operating (6xxx), selected major lines

AcctLineFY2024FY2025
6111Management Wages74,39070,988
6115Payroll Taxes59,1330
6131Credit Card Processing96,12693,952
6132Chargebacks29,35726,906
6340Digital Marketing19,33440,777
6360Sales & Marketing Services42,01949,752
6510Electricity108,95991,796
6530Water & Sewer89,32467,767
6610Franchise Royalty Fees199,691173,409
6620Program Services101,16483,681
6630Loyalty Program86,30387,103
all other 6xxx lines (net)289,945390,162
Total undistributed1,291,0951,164,484

Fixed charges and below-NOI

AcctLineFY2024FY2025
7110Property Insurance128,395137,883
7150Health Insurance31,31440,061
7210Real Estate Tax158,246167,853
7310Management Fees128,79560,315
Net operating income781,497451,024
7410/30Depreciation & Amortization192,7690
7510/20/40Interest (mortgage, CC, EIDL)472,673618,956
8110Interest Income1,79152,105
Net income117,846(115,827)