ARLINGTON, TX-Three Hampton Inn & Suites located in Texas and Arkansas have traded for a total of $26 million in three separate transactions. Atlanta-based Hunter Realty represented the sellers in the deals.
The properties include: Hampton Inn & Suites Dallas/Arlington-South in Arlington, TX; the the Hampton Inn & Suites in Texarkana, TX; and the Hampton Inn & Suites in Pine Bluff, AR.
Both Texas hotels were sold by D&D Development. The buyer was Apple REIT Nine Inc. The Arkansas hotel was sold by New Crest Management. The buyer was a Midwest-based physician who is entering the hospitality business, according to Teague Hunter, president of Hunter Realty.
Hunter tells GlobeSt.com that his firm approached a handful of REITs about the Texas properties. “Both of these hotels are performing very well with strong occupancy, cash flow and rates,” he explains.
The Arlington property, because of its location in a major market, drew the most interest, and Hunter Realty was able to negotiate a deal with Apple REIT Nine so it would acquire both properties.
The Arkansas property garnered 14 offers, Hunter says. All of those offers were from private buyers, however, since Arkansas is not considered a major market for REITs or other large institutional players.
“Interest in this property was strong because the property was out-performing expectations,” Hunter explains, adding that the property opened in late 2009. In fact, investor interest was so fierce that the property sold for 5% more than its list price.
Gary Mills in Hunter Realty’s Dallas office served as team leader on all three transactions.
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