Summit Hotel Properties sells six-hotel portfolio

Fairfield Inn & Suites - Bellevue, Wash.

Summit Hotel Properties completed the sale of six hotels with a total of 707 guestrooms to affiliates of American Realty Capital Hospitality Trust.

The hotels were sold for an aggregate price of $108.3 million, and proceeds of the sale were used to pay down the company's $300 million unsecured revolving credit facility by $105 million, resulting an an outstanding balance of $40 million.

"This sale represents another notable success for us in executing on our capital recycling strategy and is particularly significant given the current volatile market conditions.  It demonstrates our commitment to value creation and our ability to be creative in achieving our goals," commented Dan Hansen, the company's president and CEO.

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The hotels sold include the Fairfield Inn & Suites - Spokane, Wash. (84 rooms); the Fairfield Inn & Suites - Denver, Colo., (160 rooms); the SpringHill Suites - Denver, Colo., (124 rooms); the Hampton Inn - Ft. Collins, Colo., (75 rooms); the Fairfield Inn & Suites - Bellevue, Wash., (144 rooms); and the Hilton Garden Inn - Ft. Collins, Colo., (120 rooms).

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However, investors are heading into the new year with caution because performance is expected to dip, according to a JLL report.

The transaction, expected to be consummated in the first half of 2020, is still subject to regulatory approval and other closing conditions.

The China-based conglomerate also acquired the iconic brand's IP assets as part of the £11 million deal, with the brand expected to live on online.