Boulder Marriott Hotel Lands New Owner
- Aug 19, 2016
Denver—Summit Hotel Properties Inc. has acquired a 157-key Marriott hotel in Boulder, Colo., for $61.4 million. The company announced the transaction took place on August 9 and included a management agreement with Stonebridge Realty Advisors Inc.
“The asset has a number of unique attributes, including its compact size of 157 guestrooms and healthy hotel EBITDA margin og nearly 41.0 percent, that make it a great complement to our diverse portfolio of premium select-service hotels,” Summit President & CEO Daniel Hansen said in a statement.
The gross purchase price of the Marriott Boulder hotel equates to a capitalization rate of 8.2 percent of management’s estimate of the hotel’s 2017 NOI, including tenant income from roughly 20,000 square feet of retail and restaurant space. The hotel had RevPAR of $167 during the past 12 months, representing a 51 percent premium over Summit Hotel Properties’ pro forma RevPAR for the portfolio.
The Boulder, Colo., real estate market continues to be highly attractive to a variety of corporate, entertainment and education-related investors. Major employers in the area include Google, which is currently developing a $150 million campus on Pearl Street, as well as IBM, Qualcomm and the National Center for Atmospheric Research (NCAR). The Marriott Boulder hotel is conveniently located in close proximity to the University of Colorado, Folsom Field and the Pearl Street Mall.
Image courtesy of Marriott