Summit Hotel Properties, Inc. reported today that it has completed the disposition of six hotels totaling 815 guestrooms for an aggregate gross sales price of $135 million which resulted in an estimated net gain of $36.6 million.
The portfolio of six hotels sold included:
|
Hotel |
State |
Rooms |
|
Hampton Inn Boston-Norwood |
MA |
139 |
|
Hampton Inn Santa Barbara/Goleta |
CA |
101 |
|
Hampton Inn & Suites Minneapolis St. Paul Airport – Mall of America |
MN |
146 |
|
Hyatt Place Dallas/Arlington |
TX |
127 |
|
Residence Inn Salt Lake City Downtown |
UT |
189 |
|
SpringHill Suites by Marriott Minneapolis St. Paul Airport – Mall of America |
MN |
113 |
|
Total |
815 |
The aggregate gross sales price of $135 million, plus estimated future capital improvements, represented a 12.8x EBITDA multiple and 6.9 percent capitalization rate for the trailing twelve months ended March 31, 2019.
The company estimates that the hotels would have contributed approximately $9.5 million of EBITDAre through the remainder of 2019. Net proceeds from the sale were used to reduce the outstanding balance of the company’s unsecured revolving credit facility, which now has $395 million available to borrow.
