Berkadia’s Hotels & Hospitality group sold a three-property hotel portfolio for $46.5 million. The sale consisted of a Hilton Garden Inn, a Hampton Inn & Suites and a Hyatt Place. Managing directors Mark Morris and Kyle Stevenson and senior director Dan Hawkins of the Washington, D.C. Metro office, along with senior director Matt Bailly of the Los Angeles office, completed the sale on behalf of Summit Hotel Properties. The transaction closed on July 24.
“This portfolio featured three outstanding properties in two top investment markets—Nashville, Tennessee, which continues to post record annual visitor numbers, and Phoenix, which remains an in-demand destination both nationally and internationally,” Morris said in a statement. “Summit was focused on a targeted approach to finding the right buyer for these properties, all three of which were market leaders with occupancy rates in the 80-percent range. We were able to make the connection to a strong buyer who saw the advantages of buying in these growing markets with room to run.”
The portfolio includes two properties in the Nashville-Smyrna area and one in North Phoenix. The Hampton Inn & Suites Nashville-Smyrna, an 83-room property, and The Hilton Garden Inn Nashville-Smyrna, a 112-room property, are located near regional medical, manufacturing, distribution and higher education hubs and within 15 minutes of downtown Nashville. Both have recently undergone capital improvements.
The Hyatt Place Phoenix-North is a 127-room property located in proximity to Ping Golf’s headquarters, the Metrocenter Mall redevelopment and other industry clusters including aerospace engineering and manufacturing, healthcare and financial services.
“Summit’s properties were well-managed, institutional quality assets with great cashflow and premium Hilton and Hyatt brand affiliations,” Stevenson said in a statement. “Given their respective locations in regions with steadily growing economies, the buyer expects to see their value grow.”