Summit Hotel Properties completed the sale of the Holiday Inn Express & Suites located in Irving (Las Colinas), Texas. The hotel has 128 guestrooms, and was sold for a total sales price of $10.5 million.
"We are very pleased to have sold this hotel at a price we believe validates the benefits of premium select-service hotels. With RevPAR nearly 30 percent below our portfolio's average, this sale demonstrates our commitment to enhancing portfolio quality," Daniel P. Hansen, president and CEO of Summit Hotel Properties, said in a statement.
The sales price represents a capitalization rate of 7.7 percent on the hotel's net operating income, including planned capital improvements, for the trailing twelve months ended March 31, 2016. Summit estimates the hotel would have contributed approximately $0.2 million and $0.6 million of EBITDA from the sale date through the second quarter and full year 2016, respectively. The hotel was not part of a previously announced disposition of 26 hotels to affiliates of American Realty Capital Hospitality Trust.
Summit Hotel Properties is a publicly traded real estate investment trust focused on owned select-service hotels. It currently owns 82 hotels, or a total of 10,971 guestrooms, across 23 states.