Summit Hotel Properties has sold the Hilton Garden Inn San Francisco Airport North for $75 million or $444,000 per key. The sale was completed through the firm's joint venture with GIC.
Summit Hotel Properties and GIC acquired the 169-unit Hilton Garden Inn San Francisco Airport North in October 2019 for $58 million, resulting in a $20.5 million net gain and $73 million in net proceeds from the deal. Summit's share of the proceeds is equal to $37 million, according to a statement from the company. As a result of the sale, the joint venture will not complete a renovation planned for later this year, saving an additional $7.1 million.
The deal has a cap rate of 1%, which is based on net operating income that includes a 4% FF&E reserve for the twelve months ending March 31, 2022. The company will use the proceeds to pay its only debt maturity in 2022.
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Kelsi Maree Borland
