BALTIMORE, M.D. AND BRANCHBURG, N.J. — Summit Hotel Properties (NYSE: INN) has acquired two Residence Inn by Marriott hotels for a total of $56.8 million. The acquisition includes the 141-guestroom Residence Inn in Hunt Valley, just outside Baltimore, and the 141-guestroom Residence Inn in Branchburg, N.J.
“We are very happy to announce the addition of these Residence Inn hotels to our portfolio,” says Daniel Hansen, president and CEO of Austin, Texas-based Summit Hotel Properties, a publicly traded REIT. “We remain very positive on the current state of the lodging cycle and see these two acquisitions as solid contributors to our long-term growth plan. Both of these acquisitions are located in strong markets that fit well with our growth strategy and portfolio of premium select-service assets.”
Summit plans to spend about $1.5 million on capital improvements at the Hunt Valley property, which is situated just 18 miles outside of downtown Baltimore. Notable employers in the area include PayPal, eBay, McCormick Spice Co., Men’s Warehouse and Johns Hopkins University.
The company will spend an additional $1.1 million on capital improvements at the Branchburg property, which is located about an hour outside of New York City. Notable employers in the area include Johnson & Johnson, Sanofi, Merck and Diamond Nation.
Advances on the company’s senior unsecured credit facility funded the acquisitions. The seller was not disclosed.
Summit Hotel Properties is focused on acquiring and owning premium-branded, select-service hotels in the upscale and upper-midscale segments of the lodging industry. The company’s portfolio currently contains 95 hotels with a total of 12,175 guestrooms in 24 states.
The company’s stock price closed Friday, July 24, at $13.49 per share, up from $10.49 per share a year ago.