Summit Hotel Properties to Sell Portfolio for $351.4M
- Jun 09, 2015
Four Baton Rouge hotels are changing owners this year. The properties are part of a larger, national portfolio to be sold by Summit Hotel Properties Inc. to American Realty Capital Hospitality Trust Inc.
Summit announced that it has entered into an agreement with ARCH on June 8. The portfolio includes 26 hotels, with 2,793 guestrooms, in Oregon, Texas, Indiana, Arizona, Tennessee, Colorado, Washington, Florida, Mississippi and Louisiana. ARCH will purchase the portfolio for a total price of approximately $351.4 million. The sale of the properties is scheduled to close in three separate tranches, in September and October, this year, and in January 2016.
The four Baton Rouge properties are scheduled to change hands on Sept. 15. They are the DoubleTree, the Fairfield Inn & Suites, the SpringHill Suites and the TownePlace Suites. The DoubleTree is the largest of the four. It is located on Constitution Avenue and offers 127 rooms. The Fairfield Inn & Suites and the SpringHill Suites are both located on Essen Park Avenue. Each one has 78 rooms. TownePlace Suites has 90 rooms and is located on Summa Avenue.
“Through this transformational transaction, we expect to completely deploy the disposition proceeds into acquisitions that will continue to improve our portfolio and provide future growth for our shareholders,” Dan Hansen, Summit’s president and CEO, said in a statement for the press. The company also announced that it currently has approximately $100 million of acquisitions under contract. These are expected to close prior to the first tranche of dispositions. As of June 8, 2015, Summit’s portfolio consisted of 91 hotels, with a total of 11,679 guestrooms, in 21 states.