REIT Summit acquires San Francisco Four Points, completes two dispositions

Summit Hotel Properties has announced the acquisition of the Four Points by Sheraton in San Francisco, as well as the completion of two previously announced dispositions: the 89-room AmericInn Hotel & Suites and the 57-troom Aspen Hotel & Suites located in Fort Smith, Ark.

The REIT acquired the 101-room Four Points by Sheraton for $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 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."

FREE DAILY NEWSLETTER

Like this story? Subscribe to IHIF!

The hospitality industry turns to IHIF International Hotel Investment News as the must-read source for investment and development coverage worldwide. Sign up today to get inside the deal with the latest transactions, openings, financing, and more delivered to your inbox and read on the go.

The total sales price of the divested properties was $3.1 million.

Summit Hotel Properties consists of 89 hotels with a total of 11,143 rooms located in 22 states.

Suggested Articles

The Barclay brothers were expected to sell the Ritz Hotel in London to a consortium of Saudi Arabian families.

Accor launched a €300m share buyback as part of its plans to return €1bn to shareholders over the next 24 months.

Apex Hotels reported full-year revpar growth of 2.4%, driven by an investment of £9m in its estate.