THM Underwriting · Downside Land Value

Houston Hotel Land Value Boardroom

Dirt-value floor for 8 Houston-metro hotels: if the hotel failed and the site sold as raw redevelopment land, what is the ground worth? Three models researched the same 8 parcels. A live appraisal-district pull settles the disagreements.

Claude · live HCAD/FBCAD pull
ChatGPT · deep research
Gemini · deep research
Land values are the appraisal-district LAND line item only, tax year 2026, pulled live from search.hcad.org and esearch.fbcad.org on 2026-06-16. Harris 2026 values noticed, not yet certified (protest deadline 2026-05-26).

The bottom line

The hard floor under all 8 properties is the appraisal districts' own land assessment: $35.49M of dirt before a dollar of building value. The Mid and High cases apply each model's price-per-square-foot judgment to the true parcel size.

$35.49M
District land floor (Low)
Sum of the 8 LAND line items, HCAD + FBCAD, TY2026
$46.4M
Consensus Mid
Avg model $/SF × true parcel SF
$57.7M
Consensus High
Highest-and-best-use redevelopment basis
5 of 8
Settled by live pull
3 parcels needed a live lookup neither model could do

Reconciled land value, ranked by dirt floor

Ranked by absolute district land value. Low = district truth. Mid / High = consensus $/SF on the real parcel. $/key on the Low.

Rank · PropertyKeysLand size Low (district)$/SF$/key MidHigh
1 DTG · DoubleTree GalleriaUptown / Galleria · REDUS DHG LLC4763.36 ac$14,622,400$100$30,719$18,570,000$22,030,000
2 HOURP · SHS Med Ctr / NRGTexas Medical Center · RODEO HOTELS LP1902.81 ac$7,335,540$60$38,608$9,414,000$11,615,000
3 DT IAH · DoubleTree AirportGeorge Bush IAH corridor · IAH 15747 HOTEL LLC3137.30 ac$4,769,820$15$15,239$6,360,000$8,270,000
4 HOUZN · SHS NorthwestSH 249 / Vintage · HOWDY HOTELS LP1397.53 ac*$2,164,160$18$15,569$2,276,000$2,795,000
5 HP SL · Hyatt Place Sugar LandLake Pointe / Town Square · Monarch Sugar Land LP2143.69 ac$1,824,975$11.35$8,528$3,697,000$4,580,000
6 Element · Vintage ParkVintage Park (partial AE flood) · Vintage Harris Hospitality LP1232.70 ac$1,762,875$15$14,332$2,351,000$2,899,000
7 HOUUS · HIEX WestchaseWestchase / Westheimer · HI HOTELS LP1271.11 ac$1,743,480$36$13,728$1,986,000$2,326,000
8 SHS SL · SpringHill Sugar LandUS 59 frontage · Motels of Sugar Land LLP942.00 ac$1,262,753$14.50$13,434$1,741,000$2,090,000
Portfolio · 8 parcels1,67630.5 ac$35,486,003$21,173$46,394,000$57,699,000

* HOUZN is 7.53 ac on paper but only ~119,790 SF is usable upland (valued $15/SF). The rest is floodway (109,815 SF @ $3.30/SF) and drainage easement (98,402 SF @ $0.05/SF), which is why its blended district basis is only $6.60/SF and the dirt floor is weaker than the headline acreage suggests. Source: HCAD account 1336790010002 land detail.

DTG land size is triangulated. The 3.36 ac is confirmed by three independent sources within 0.04%: the ALTA/ACSM Land Title Survey (Reserve "C", 146,170 SF), HCAD parcel 1168840000003 (146,224 SF), and the OM v5.23 land size (146,224 SF). Flag: the survey covers a gross 3.7085 ac as Reserves "C" and "D"; HCAD taxes only Reserve C. A second reserve of ~15,400 SF (~0.35 ac, up to ~$1.5M at $100/SF) may convey but is not in the taxed parcel and may be a detention/easement strip. Confirm with the broker whether Reserve D conveys and is buildable.

The debate: where the models split

Every model agreed on the 5 Harris parcels that resolve from indexed public records. They split on the 3 that need a live parcel lookup (HOUZN and both Sugar Lands) plus 2 where Gemini guessed the lot size wrong. The live district pull is the referee.

Property District truth Claude ChatGPT Gemini Verdict
HOURP$7,335,540$7,335,540$7,335,540$7,335,540all matched
DT IAH$4,769,820$4,769,820$4,769,820$4,769,820all matched
Element$1,762,875$1,762,875$1,762,875$1,762,875all matched
HOUUS$1,743,480$1,743,480$1,743,480$1,500,000*Gemini low 14%
DTG$14,622,400$14,622,400$14,622,400$8,712,000*Gemini 2.0 ac error survey-confirmed 3.36 ac
HOUZN$2,164,160$2,164,160$4,590,000*$1,200,000*GPT high 112% Gemini low 45%
SHS SL$1,262,753$1,262,753$1,220,000*$1,500,000*both close
HP SL$1,824,975$1,824,975$1,130,000*$2,500,000*GPT low Gemini high

* = the model marked this an estimate. Claude's column is the live HCAD/FBCAD pull, so it equals district truth by construction. The headline lesson: the appraisal-district LAND line cannot be reliably web-scraped, so for the 3 parcels behind live-lookup forms, the frontier models' "Low" numbers swung from -45% to +112% off the real figure.

Hold the dirt constant

The models' dollar totals diverge mostly because they multiplied their $/SF by different (often wrong) acreage. Run each model's Mid $/SF through the real parcel and the judgment converges. Gemini reads more bullish on price per foot; its low dollar totals were acreage errors, not cheaper opinions.

PropertyTrue SF Claude $/SFGPT $/SFGemini $/SF Mid on true parcel (low–high)
DTG146,224$115$115$150$16.82M – $21.93M
HOURP122,259$70$70$90$8.56M – $11.00M
DT IAH317,988$18$18$25$5.72M – $7.95M
HP SL160,728$15$18$35$2.41M – $5.63M
HOUUS48,430$42$42$40$1.94M – $2.03M
Element117,525$18$18$25$2.12M – $2.94M
SHS SL87,068$17$17$25$1.48M – $2.18M
HOUZN (upland)119,790$18$18$20$2.16M – $2.40M

DTG is the clearest case: Gemini's own $150/SF is its most bullish call, but it reported only $13.1M because it used 2.0 ac. On the true 3.36 ac that same $150/SF is $21.9M. Same opinion, right parcel, very different number.

Strongest and weakest dirt floors

Strongest downside protection

DTG $14.6M of Uptown/Galleria dirt at $100/SF is the most liquid, most redevelopable ground in the set, before any credit for the 476-key high-rise. All three models agree this is the floor leader.

HOURP has the best per-key floor at $38,608/key. Texas Medical Center land is firming hard: a 2.1-acre tract one block away at 1500 Old Spanish Trail traded in May 2025 for a 280-unit apartment project, phase one of a 21.3-acre master plan (Transwestern, The Real Deal). Multifamily / medical HBU is real.

Weakest downside protection

HP SL at $8,528/key is the thinnest floor: $1.82M of land spread over 214 keys. The dirt is fine; there is just a lot of building on top of it.

HOUZN looks large at 7.53 ac but two-thirds is floodway and drainage easement. Both frontier models missed this and over- or under-shot. The usable dirt is ~2.75 ac, so the real floor is ~$2.2M, not the $4.6M one model assumed.