Summit Hotel Enters into Agreement with Mortenson Development to Acquire Hampton Inn & Suites
- Mar 17, 2014
Summit Hotel Properties Inc. recently announced it has contracted to acquire two hotel properties featuring a total of 421 guestrooms. The two properties are the DoubleTree by Hilton located in San Francisco and the Hampton Inn & Suites in Minneapolis.
The real estate investment trust has entered into a definitive agreement with Mortenson Development to purchase the 211-guestroom Hampton Inn & Suites, which is currently under development in Minneapolis, for approximately $37.7 million. Summit issued, in January 2014, a $13.1 million letter of credit in support of the acquisition under its senior unsecured credit facility.
Upon completion of the deal, The Hampton Inn & Suites will be the second property for Summit in downtown Minneapolis. The hotel will be located at First Avenue and Eighth Street, near the Block E Entertainment District, Target Field, Target Center, the Minneapolis Convention Center and the new Vikings stadium, currently underway. The Mayo Clinic also recently announced it will open a 20,000-square-foot sports medicine facility in the current Block E Building.
Company president & CEO Dan Hansen, in a statement, said: “We look forward to the addition of another high-quality asset to our portfolio in a vibrant market such as downtown Minneapolis. We are excited to be part of this development opportunity and work with Mortenson throughout the building process.”
The deal is subject to certain conditions such as the completion of the hotel as per the agreed-upon architectural and engineering designs, receipt of a certificate of occupancy and receipt of a Hampton Inn & Suites franchise. The hotel is scheduled for completion in the first quarter of 2015 and was designed by ESG Architects.
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Rendering courtesy of www.mortenson.com