Keyword: Summit Hotel Properties
A joint venture between Summit Hotel Properties and GIC has entered a definitive agreement to acquire 710 guestrooms in Oregon and California.
The three properties are a Hampton Inn & Suites, a Westin and an Autograph Collection hotel.
The new owner plans to renovate the hotels, which were sold by Summit Hotel Properties.
The company represented Summit Hotel Properties, a publicly traded real estate investment trust based in Austin, Texas, in the sale of the 148-room hotel.
Summit Hotel Properties sold a Hilton Garden Inn and a Hampton Inn & Suites in Nashville and a Hyatt Place in Phoenix.
Scheduled to open in spring 2018, the Summit Hotel will rely on Agilysys products to help ensure the security of guest payment information.
The purchase price of the deal is $163 million, or approximately $201,000 per key.
As the busy summer season begins to wind down, it’s a good time to take a look around your property and survey the wear and tear. Most major metropolitan cities have seen an increase in occupancy this season. As the hospitality industry begins to slowly recover, it’s time to look at your preventive maintenance schedule, your linen PAR levels, and dust off those plans to renovate your guestrooms and lobby areas. According to PKF research, occupancy levels are expected to increase over the next year. So if you are looking to increase your property’s revenue, you will want to make sure all your rooms are functioning, and replace any items that were cannibalized from other guestrooms last year. Some properties had to close off floors or wings of their property in order to cut costs in 2009, but as travelers begin to loosen their belts and get ready to spend again, you do not want to be caught off guard with nonfunctioning rooms.
The sales price represents a capitalization rate of 7.7 percent on the hotel's net operating income for the trailing 12 months ended March 31, 2016.
