Summit Hotel Properties has acquired the Hilton Garden Inn located in the Energy Corridor of Houston. The acquisition marks the second Hilton Garden Inn owned by Summit in the Houston area. Concurrently, Summit announced it sold the Hampton Inn, in Fort Smith, Ark.
The company acquired the 190-guestroom Hilton Garden Inn for a total purchase price of $36 million and entered into a management agreement with American Liberty Hospitality, Inc. The property was built in 2008 and the company anticipates spending approximately $3.2 million in capital improvements over the next 12 months.
“We are very pleased with the acquisition of our second property in the Houston market. This high yielding asset in a market with multiple demand generators makes it a perfect addition to our portfolio. We see great opportunity for our asset management team to create additional value through operational improvements and believe this asset will create tremendous near-term and long-term shareholder value,” said Summit President and CEO Dan Hansen.
The Hilton Garden Inn is located in the heart of the Houston Energy Corridor, which is home to many of the world’s largest energy companies including BP America, Citgo Petroleum, ConocoPhillips, ExxonMobil and Shell Oil Company. With nearly 19 million square feet of existing office space and an estimated 10.7 million of additional square feet to be added by 2030, the Energy Corridor will be a central focus for Houston’s economic growth for years to come.
Summit also announced the completed disposition of the 178-guestroom Hampton Inn located in Fort Smith, Ark. on September 9, 2014 for a total sales price of $8.8 million. This was the final property classified as held for sale by the company and completes the company’s exit from the Fort Smith market.