Arbor Lodging Partners acquired six hotels from Summit Hotel Properties for $135 million, expanding its portfolio to 25 full- and select-service hotels. Summit said the sale resulted in an estimated net gain of $36.6 million, with those proceeds going toward reducing the outstanding balance of its unsecured revolving credit facility.
The six hotels were: the 139-room Hampton Inn Boston-Norwood, the 101-room Hampton Inn Santa Barbara/Goleta in California, the 146-room Hampton Inn & Suites Minneapolis St. Paul Airport-Mall of America and the 113-room SpringHill Suites by Marriott Minneapolis-St. Paul Airport/Mall of America, the 127-room Hyatt Place Dallas/Arlington and the 189-room Residence Inn by Marriott Salt Lake City Downtown.
Arbor Lodging plans to renovate each property, providing modern updates to all guestrooms, guest bathrooms, lobbies, common areas, meeting spaces and food-and-beverage outlets. Arbor Lodging affiliate Arbor Lodging Management will manage the hotels.
"We are thrilled to have added such a diverse set of properties and markets to our portfolio in our continued efforts to make value-add investments in the hospitality space," Vamsi Bonthala, CEO of Arbor Lodging Partners, said in a statement.
Arbor Lodging is a Chicago-based owner and operator of hotels. Summit Hotel Properties is a real estate investment trust focused on owning premium-branded hotels.