The deal carries an average cap rate of 8.6% based upon trailing 12 months net operating income, according to Equity Inn executives, adding that the acquisition includes the assumption of $56.5 million in debt at a blended cost of 6.1%. An Equity Inns spokesman could not be reached for more details, specifically when the deal is expected to close.
The five-hotel transaction includes three assets in California: 150-suite Residence Inn at the Los Angeles International Airport, a 95-suite Residence Inn and 137-suite SpringHill Suites, both in San Diego. The other two hotels are in Texas: the 184-room Courtyard and 116-room Fairfield Inn & Suites, located across from the Dallas Market Center. The average age of the hotels factors out to seven years.
Under the terms of the deal, Huntington Hotels will continue to manage the hotels. Huntington also manages the Carlsbad Courtyard in San Diego, which Equity purchased from Huntington in September 2005 for $22 million, as GlobeSt.com previously reported.
"We are pleased to build on our relationship with Huntington Hotels Group, a strong manager with an active development pipeline of premium, select service projects," Equity Inns president and CEO Howard Silver says in a statement. "Additionally, we are excited about increasing our presence in the high-barrier markets of Los Angeles and San Diego."
According to Equity Inns website, the company currently owns one hotel in California (the Carlsbad Courtyard) and eight hotels in Texas. All total, the locally based REIT owns 132 hotels with 15,731 rooms in 35 states.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
