Summit Hotel Properties, Inc. (NYSE: INN) announced the acquisition of the Four Points by Sheraton located in San Francisco, Calif. as well as the completion of two previously announced dispositions.
The Company acquired the 101-guestroom Four Points by Sheraton for a purchase price of $21.3 million and has entered into a management agreement with Pillar Hotels and Resorts, L.P. The Company plans to spend approximately $1.3 million on capital improvements and anticipates a post-renovation estimated NTM capitalization rate in the range of 8.5 percent to 9.5 percent based on management’s current estimate of net operating income.
“We are very happy to expand our presence in the San Francisco market,” said Company President and CEO Dan Hansen. “This property is a great addition to our portfolio with its proximity to the San Francisco International Airport as well as the unique mix of multiple demand generators.”
The Company also announced the completion of two previously announced dispositions, the 89-guestroom AmericInn Hotel & Suites and the 57-guestroom Aspen Hotel & Suites located in Fort Smith, Ark. for a total sales price of $3.1 million.
Summit Hotel Properties, Inc. is a publicly traded real estate investment trust focused primarily on acquiring and owning premium-branded select-service hotels in the upscale and upper midscale segments of the lodging industry. As of January 30, 2014, the Company’s portfolio consisted of 89 hotels with a total of 11,143 rooms located in 22 states.
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