SIOUX FALLS, S.C. — Summit Hotel Properties (NYSE: INN), a real estate investment trust, has entered into three agreements to acquire 10 hotels, including eight properties from Hyatt Hotels Corp., for a total of $114.6 million.
Included in the Hyatt portfolio is the 127-room Hyatt Place-Arlington in Arlington, Texas; the 151-room Hyatt Place-Lombard in Lombard, Ill.; the 127-room Hyatt Place-Phoenix in Phoenix; the 127-room Hyatt Place-Scottsdale in Scottsdale, Ariz.; the 123-room Hyatt Place-Owings Mills in Owings Mills, Md.; the 127-room Hyatt Place-Park Meadows in Lone Tree, Colo.; the 126-room Hyatt Place-Denver Tech Center and the 135-room Hyatt House-Denver Tech Center in Englewood, Colo. The sale price of the Hyatt portfolio is $87.4 million.
“We continue to see terrific opportunities to grow our portfolio,” says Dan Hansen, president and CEO of Sioux Falls-based Summit Hotel Properties. “This acquisition is a result of our great relationship with Hyatt and we look forward to exploring future opportunities and continuing to grow that relationship.”
The company plans to enter into an agreement with Select Hotels Group, a Hyatt affiliate, to operate the hotels.
Summit Hotel Properties has also agreed to acquire the 98-room Hilton Garden Inn in Fort Worth, Texas, for $7.2 million, as well as the 178-room Residence Inn in Salt Lake City for $20 million. The company plans to invest $8.9 million for renovations at these hotels. All of the acquisitions are expected to close in the fourth quarter.
As of Sept. 26, 2012, Summit Hotel Properties’ portfolio includes 73 hotels with a total of 7,533 rooms in 20 states. The company stock price closed at $8.58 per share on Wednesday, up from $7.34 per share a year earlier.
— Savannah Duncan