Summit Hotel Properties, through its joint venture with GIC, will acquire the 250-guestroom Hampton Inn Boston - Logan Airport and the 149-guestroom Hilton Garden Inn Tysons Corner for a combined purchase price of $96 million, or $241,000 per key. Other terms and conditions were not disclosed. The purchase price represents an 8.8 percent capitalization rate based on forecasted 2024 net operating income and no meaningful capital expenditures are planned prior to the fourth quarter of 2026.
"We are excited to announce the pending acquisition of the Hampton Inn Boston - Logan Airport and Hilton Garden Inn Tysons Corner through our joint venture with GIC," Jonathan Stanner, the company's president and CEO, said in a statement. "These two premium-branded hotels are located in high barrier-to-entry, gateway city submarkets and generate RevPAR, EBITDA margin and EBITDA per key metrics that are accretive to our existing portfolio of high-quality hotels. The purchase price represents an attractive going-in yield and a significant discount to estimated replacement cost. The transaction represents the continuation of our successful capital allocation strategy and has been facilitated by recent asset sales, which generated nearly $150 million of proceeds and eliminated approximately $50 million of near-term capital expenditures."
The Hampton Inn Boston – Logan Airport is located 2.5 miles from the Boston Logan International Airport and less than a 10-minute drive to downtown Boston. Boston's diverse demand drivers including corporate, group, education, healthcare, and leisure demand make it one of the strongest lodging performance and investment markets in the U.S. The hotel has a 368-space surface-level parking lot, a portion of which is leased to a third-party parking operator, creating a durable and meaningful ancillary revenue source for the hotel.
The Hilton Garden Inn Tysons Corner is situated in Vienna, Va., 11 miles west of downtown Washington, D.C., and is the closest Hilton-branded select service hotel to Hilton world headquarters. Tysons Corner is one of Virginia's principal business districts and home to five Fortune 500 companies. In addition to its preeminent office market, Tysons is home to the Tysons Corner Center, one of the largest shopping centers and mixed-use developments in the U.S., with annual visitation spending of $2.4 billion and a strong employment CAGR of 14 percent since 2010.