Popular Lounge With Live DJ Entertainment

Business Overview:

TRANSWORLD BUSINESS ADVISORS OF HOUSTON. LISTING REF # 76931-544364

This well-established and popular lounge has become a premier destination, celebrated for its inviting and sophisticated atmosphere, delicious bar-style food, and vibrant weekend live DJ performances that appeal to a diverse clientele seeking a relaxing yet upscale experience. Renowned for its extensive range of premium hookah options, the lounge offers a curated selection of flavors and blends, ensuring each guest enjoys a unique and personalized experience. A BYOB option is also available, subject to a cover charge, adding to the lounge’s appeal. Its dedication to exceptional customer service has earned it a stellar reputation, attracting both locals and visitors alike.

Strategically located in a bustling area of Houston with direct connectivity to Sugar Land, the lounge enjoys prime placement within a popular Texas shopping center. Established in 2020, the business has undergone recent enhancements, including live DJ performances, an expanded hookah menu, and mouthwatering bar food, further elevating the customer experience. This prime location not only ensures excellent visibility but also guarantees consistent foot traffic from regular patrons, shoppers, tourists, and nearby residents.

In 2024, the lounge achieved impressive revenue of $268,000, with Seller’s Discretionary Earnings (SDE) exceeding $195,966 a significant growth from 2023. The business derives additional income as cover charges for weekend live DJ performances that the seller will explain during face-to-face meetings. This profitable and turnkey business opportunity combines an exceptional location, a strong reputation, and a proven track record of success.

*Additional Net income (DJ Music charges) of $66K-$72K / per year - To be discussed with the seller

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Property Features and Assets:

Monthly Rent: $3,355.00

Square Units (Foot, Meter): 2,100

Lease Expiration Date: October 26, 2026, 1:00:00 AM

Terms Options: Assignable lease. Landlord is willing to offer additional 10 years lease options to the qualified Buyers. Lease Assignment terms to be negotiated with Landlord.

Facilities: Ample parking available in the Strip Center

FF&E Overview:
Asset and Inventory List:
Hookahs
Tips for Hookahs, Tubes
Flavors
Snack, drink and restaurant food

Lounge area
Stage
LED lights
4 Fans
4 84-inch TVs
Entertainment system
Sofa sections(30)
Tables(60)

Kitchen Equipment
2 Air Fryers
1 freezer
1 cooler(beverages)

Miscellaneous
Signs
8 Cameras, Telephone
Security Alarm system
2 WI-FI Routers
4 Speakers

FF&E General Condition: Good condition

Market Competition and Expansion:

Competition:

There are a few Hookah bars and Grills in the area. However the unique feathers such as flavors and Hookah quality, Live DJ music, and BYOB option at a small cover charge sets this business apart. The lounge with the expanded hours has become local and regular customer's favorite spot.

Hookah Lounge Market Size, Share:
The global Hookah Market size is expected to be worth around USD 364 Million by 2033, from USD 192 Million in 2023, growing at a CAGR of 6.6% during the forecast period from 2023 to 2033. The hookah lounge industry—also known as the shisha or nargileh industry—has experienced significant growth over the past decade, with market size and share expanding notably in urban centers and culturally diverse areas. While specific figures can vary by region, industry reports indicate that the global shisha tobacco market is valued at multiple billions of dollars, with hookah lounges capturing a substantial portion of consumer spending in this segment.
This type of market trend is targeting primarily young adults aged 18–35, these lounges also resonate strongly with Middle Eastern, South Asian, and North African communities. Revenue is generated through multiple streams, including premium hookah sessions, complementary non-alcoholic beverages (like tea, coffee, and mocktails), private event hosting, and, in some cases, retail sales of hookah accessories or shisha tobacco. With the global market projected to grow at a compound annual growth rate (CAGR) of 5–6% over the next decade, the hookah lounge industry is well-positioned to capitalize on shifting consumer preferences and expanding market share, making it an exciting and dynamic sector for investors and operators alike.

Expansion:

Opportunities include:

Expanded Hours: Opening earlier to offer alternative experiences like daytime relaxation sessions or themed social events.

Marketing Initiatives: Investing in targeted social media advertising and local influence collaborations to attract new customers.

Private Event Hosting: Expanding into private parties or exclusive events to create additional revenue streams.

New Revenue Initiatives: Adding bar and liquor sales along with full-service kitchen concept.

External Factors that will contribute to growth:
- Provide alternative services
- Local marketing of services
- Event and weekend party promotion via social media to the strong followers base

Internal Factors that will contribute to growth:
- Strong Manager employment
- Daytime business management for full-service kitchen/grill management
- Adding bar and liquor license

Reason for Selling:

Additional Details:

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