Hampton Inn & Suites by Hilton Downtown Gainesville
Gainesville, FL
Key International has acquired the Hampton Inn & Suites by Hilton Downtown Gainesville. The hotel was purchased from Ashford Hospitality Trust Inc., for a total of $27 million.
The purchase price, including projected CapEx to be invested by Key, represents a trailing 12-month cap rate of 8.3% on net operating income. On a trailing 12-month basis, the hotel achieved RevPAR of $130, with occupancy of 83% and ADR of $156. The hotel had an existing debt balance of approximately $21 million, and Ashford realized net proceeds from the disposition of approximately $5 million after debt repayment and transaction costs.
The hotel offers 124 guestrooms, including 27 studio suites. Diego Ardid, co-president of Key International, leading the company’s hospitality division, said, “As home to the nation’s ninth largest university by enrollment, Gainesville is a dense, bustling destination that continues to thrive. We are delighted to enter the market and look forward to introducing an elevated property that we know will be well-received.”
Key International plans to invest more than $2 million to renovate the property. LBA Hospitality will provide management services for the property.
Country Inn & Suites by Carlson
Denver
Hunter Hotel Advisors acted as exclusive agents in the sale of the 193-room Country Inn & Suites By Carlson, Denver International Airport.
Sand Companies, Inc., sold the six–story hotel for $15.5 million to Stonebridge Hospitality, a privately owned, Denver-based hotel management company. It plans to renovate and convert the property into a Courtyard by Marriott, offering the latest Courtyard Generation Six interior design finishes and amenities, according to the company.
“We had tremendous buyer interest due to the hotel’s prime location next to one of the busiest airports in the U.S.,” said Teague Hunter, president of Hunter Hotel Advisors.“Stonebridge took advantage of this opportunity to continue to invest in Denver, which has been an industry leader in occupancy and ADR growth for the past few years.”
Hotel amenities include free WiFi, complimentary breakfast, 24-hour airport shuttle service, heated indoor pool, fitness and business centers.
Hunter’s Phoenix and Los Angeles office collaborated on the transaction, according to the company. With a vast client list, Hunter Hotel Advisor’s national brokerage offices currently represent full- and select-service hotels including portfolios and individual assets for clients ranging from REITs and investment banks to regional hotel owners.
Marriott
Boulder, CO
Summit Hotel Properties, Inc., has completed the acquisition of the 157-guestroom Marriott in Boulder, CO, for $61.4 million and entered into a management agreement with Stonebridge Realty Advisors, Inc.
“We are excited about the opportunity to add another high-quality hotel to our portfolio,” said Summit Hotel Properties President and CEO Daniel P. Hansen. “The asset has a number of unique attributes, including its compact size of 157 guestrooms and healthy hotel EBITDA margin of nearly 41%, that make it a great complement to our diverse portfolio of premium select-service hotels.”
The gross purchase price represents a capitalization rate of 8.2% on management’s current estimate of the hotel’s 2017 net operating income, which includes tenant income from approximately 20,000 sq. ft. of retail and restaurant space. Over the last year, the hotel had RevPAR of $167, which represents a 51% premium over the company’s pro forma RevPAR for the portfolio, according to the company.
The Boulder market exhibits high barriers to entry and a variety of corporate, leisure, and education-related demand generators, according to Summit. The area’s major corporate employers include IBM, Google, NCAR, Qualcomm and Covidien. The hotel is within walking distance of the University of Colorado, Folsom Field and Pearl Street Mall.
Home2 Suites by Hilton
Tukwila, WA
Lightstone Value Plus Real Estate Investment Trust III Inc. (LVPR III) has acquired a 139-key Home2 Suites by Hilton in Tukwila, WA for $28 million.
The company entered into a long-term franchise agreement with Hilton for this property, commencing upon acquisition. Lightstone also acquired a second Home2 Suites: a 125-key hotel in South Jordan, UT. Both properties will be managed by Island Hospitality and overseen by Lightstone’s hospitality division.
The Home2 Suites in Tukwila, WA, opened in 2015 and is situated five miles from the Seattle-Tacoma International Airport and seven miles from the Museum of Flight. Located south of downtown Seattle, several major companies are in this area, including Boeing, REI and Group Health Cooperative.
The Home2 Suites located in South Jordan, UT, a suburb of Salt Lake City, opened in 2013. It is the exclusive hotel within the RiverPark Corporate Center, a 120-acre business park comprised of 15 buildings totaling 1.7-million-sq.-ft. of office and retail space. The hotel is also located near Alta Ski Resort, a recreational destination in Utah.
David Lichtenstein, chairman and CEO of Lightstone, said, “These properties are strategically located in growing markets and bring a geographic diversity within LVPR III.”
