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."
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.