AUSTIN-Locally based Summit Hotel Properties Inc. has signed definitive agreements with two sellers to add 503 rooms to its portfolio.
In one agreement, the hospitality REIT struck a deal with Ocean Park Hotels Inc. of San
Luis Obispo to acquire a 321-room portfolio of California-based Hampton Inns for $59 million.
Upon closing of the California portfolio, the company plans to invest approximately $3 million for renovation. “These top quality assets in high barrier to entry markets provide significant expansion of our west coast presence,” says Summit president and CEO Dan Hansen. “We welcome the opportunity to work with a new, high quality management team and continue to improve their performance.”
The portfolio consists of:
| Name | # of Rooms | Address |
| Hampton Inn & Suites Santa Barbara-Goleta | 98 | 5665 Hollister Ave., Goleta, CA |
| Hampton Inn & Suites Camarillo | 115 | 50 W. Daily Dr., Camarillo, CA |
| Hampton Inn & Suites Poway | 108 | 14068 Stowe Dr., Poway, CA |
Summit anticipates assuming approximately $12.1 million in mortgage debt associated with the acquisition of the Southern California portfolio. The loan bears a fixed interest rate of 6.13% and has a maturity date of Nov. 11, 2021.
In the separate transaction, Summit Hotel negotiated a deal with Houston-based American Liberty Hospitality Inc. to pay $37.5 million for the Hilton Garden Inn Houston-Galleria at 3201 Sage Rd. In buying this asset, the company is assuming a $17.9-million mortgage with a fixed interest rate of 6.22% and a maturity date of Nov. 1, 2016.
“I have watched and admired this hotel for many years. We look forward to continuing the legacy of strong performance through capital investment and by working with a well-respected management team. This will be a great addition to our portfolio,” Dan Hansen says.
Summit Hotel Properties anticipates a Q4 2013 closing on both transactions.
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.
