Summit Hotels Lands $53M Courtyard by Marriott in Charlotte
- Jun 19, 2017
Summit Hotel Properties Inc. completed the acquisition of the 181-key Courtyard by Marriott Charlotte City Center for $56.3 million and entered into a management agreement with OTO Development LLC. Summit Hotel Properties, partially funded the acquisition of the Courtyard by Marriott Charlotte City Center through recycling the capital from a non-core asset sale.
Located at 237 South Tryon St., in the heart of Charlotte‘s uptown financial and entertainment district, the hotel provides access to the Bank of America corporate headquarters. Courtyard by Marriott Charlotte City Center is located across the street from Wells Fargo’s east coast operations headquarters and blocks from the Charlotte Convention Center and the NASCAR Hall of Fame. The hotel includes a fitness center, an outdoor swimming pool and more than 2,200 square feet of meeting and event space.
The hotel’s guest rooms and public space were recently renovated, but Summit Hotel Properties intends to invest roughly $800,000 into redesigning the bar and bistro area.
“Since our equity raise last month, we have now closed or signed contracts to purchase over $300 million in high-quality, premium-branded hotels that have significant upside and meet our investment criteria,” said Summit Hotel Properties Chairman, President & CEO Daniel Hansen, in a prepared statement.
The company projects a capitalization rate of 8.3 percent based on management’s current estimate of the hotel’s net operating income during the first year of ownership. Summit Hotel Properties also expects the hotel to contribute approximately $2.7 million of earnings before interest, taxes, depreciation and amortization for the remainder of this year. For the twelve months ending in March 2017, the hotel had a revenue of $129 per room.
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