Search
 

Equity Inns Grows Portfolio With $114M Deal

GERMANTOWN, TN-The five-hotel deal with Huntington Hotels marks the REIT's entrance into the Los Angeles market.The assets are in Texas and California.

By Melissa Kress | Updated on May 11, 2007

GERMANTOWN, TN-Equity Inns Inc. is adding five Marriott-branded hotels spread across Texas and California to its portfolio in a $114.2-million transaction. The seller is a partnership controlled by the principals of Huntington Hotels.

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.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 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.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.