Summit Closes $163M Portfolio Deal
Acquired from Xenia Hotels, the five properties include four adaptive-reuse buildings. The assets are located in Fort Worth, Kansas City, Mo., Pittsburgh and Baltimore.
By Mihaela Coste
Summit Hotel Properties Inc. has closed the acquisition of a 812-key, five-hotel portfolio from Xenia Hotels & Resort Inc. for a total amount of $163 million, or approximately $201,000 per key. The properties are located in Fort Worth, Texas, Kansas City, Mo., Pittsburgh and Baltimore.
CBRE’s Hotels Vice President Arpit Shah, Executive Vice President Ron Danko and Managing Director Andy Wimsatt represented the seller. Summit intends to spend between $13 million and $16 million in capital improvements over the next two years.
Historic gems
The portfolio includes Courtyard Fort Worth Downtown/Blackstone, a 203-key hotel constructed in 1929 as the famed Blackstone Hotel, which affiliated with the Courtyard by Marriott brand in 1999. Located in Sundance Square in the heart of downtown Fort Worth, the asset features a fully equipped recreation center and an outdoor pool.
Courtyard Kansas City Country Club Plaza is a historic 123-key hotel located in Kansas City, Mo. The asset, developed in 1925 as the luxury Park Lane Apartments and converted to Courtyard by Marriott in 2006, features luxury bedding, state-of-the-art fitness center and an outdoor pool. Kansas City International Airport and Kauffman & Arrowhead Stadium are just minutes away from the property.
The 182-key Courtyard Pittsburgh Downtown was formerly four office buildings originally built in the early 1900s and converted to Courtyard by Marriott in 2004. The asset sits in the heart of the Cultural District and is conveniently located next to the David L. Lawrence Convention Center and many downtown attractions, including the Strip District, PNC Park and Heinz Field. Courtyard Pittsburgh Downtown features modern decor, luxury bedding, work areas with well-lit desks and free Wi-Fi, as well as three state-of-the-art meeting rooms.
Baltimore Inner Harbor Hotels
Hampton Inn & Suites Baltimore Inner Harbor is a 116-key hotel located just two blocks from the Inner Harbor and Baltimore Convention Center. The asset, housed in the former U.S. Fidelity and Guarantee Bank Building constructed in 1906 and converted to a lodging facility in 2004, features expansive windows, indoor heated pool and on-site fitness center.
The 188-key Residence Inn Baltimore Downtown/Inner Harbor is the only property in the portfolio that was purpose-built. Situated downtown, near the Inner Harbor, Baltimore Aquarium and Hippodrome Theatre, the hotel features a 24-hour fitness center, business center, as well as Wi-Fi and a pet-friendly policy.
“Strong interest in the portfolio was driven by the ability to purchase institutional-quality, boutique-oriented assets affiliated with some of the industry’s most premium brands. In addition, the hotels offer distinctive historic architectural elements, dynamic locations within urban settings in geographically-diverse primary markets across the U.S. and meaningful revenue growth opportunity through capital investment,” said Shah in a prepared statement.
Summit Hotel Properties focuses on owning premium-branded assets with efficient operating models primarily in the upscale segment of the lodging industry. The company’s portfolio currently consists of 76 properties with a total of 10,705 guestrooms, located in 22 states.
Images Courtesy of Marriott and Hampton Inn
