Summit Hotel Properties is selling four of its Baton Rouge hotels along with 22 others nationwide in a $351.4 million deal with American Realty Capital Hospitality Trust Inc.
The DoubleTree, Fairfield Inn & Suites, Springhill Suites and TownePlace Suites are among the 26 premium, extended-stay and full-service hotels in 11 states included in the sale. The estimated sale date for the Baton Rouge properties is Sept. 15.
The DoubleTree Hotel, 4964 Constitution Ave., is the largest of the four, with 127 rooms. TownePlace Suites, 8735 Summa Ave., offers 90 rooms. The Fairfield Inn & Suites, 7959 Essen Park Ave., and Springhill Suites, 7979 Essen Park Ave., each have 78 rooms. DoubleTree is a Hilton Hotels & Resorts franchise; the remaining three, Marriott International franchises.
ARC Hospitality’s deal with Summit makes it one of the largest owners of select-service hotels by enterprise value in the North American lodging REIT sector. The company last week acquired five other hotels totaling 565 rooms for $92.5 million from affiliates of the Wheelock Real Estate Fund. The combined deals increase its lodging portfolio to 153 hotels totaling 18,280 rooms across 33 states.
The trailing 12-month RevPAR, or revenue per available room, among the 26 properties involved in the latest deal was $81.30, according to Summit. That’s 19.7% below the pro forma RevPAR for Summit’s remaining hotels, which stood at $101.26 as of March 31, 2015.
“This proposed transaction will enable us to continue to improve our asset mix and upgrade our portfolio with additional accretive acquisitions with strong growth profiles and diverse demand generators,” Summit President and CEO Dan Hansen said in the announcement. “Recycling capital to create long-term value for our shareholders is a proven strategy for us and one we consider to be a core strength.”
Summit Hotel Properties, Inc. is a publicly-traded real estate investment trust focused primarily on acquiring and owning premium-branded, select-service hotels in the upscale and upper midscale segments of the lodging industry. The trust owns 91 hotels with a total of 11,679 guestrooms in 21 states.
