Summit Hotel Properties, Inc. (NYSE: INN) yesterday announced that it has completed the acquisition of four hotels with a combined total of 652 guestrooms for an aggregate purchase price of $164 million, or approximately $252,000 per key. The portfolio includes the 207-guestroom Courtyard New Haven at Yale, the 148-guestroom Hilton Garden Inn Boston/Waltham, the 175-guestroom Residence Inn Cleveland Downtown, and the 122-guestroom Homewood Suites by Hilton Tucson/St. Philip’s Plaza University. The agreements to acquire the portfolio were previously announced on November 13, 2017.
Adjacent to Yale University in a prime location, the Courtyard New Haven at Yale is a unique opportunity to acquire the only Marriott-branded hotel within nearly ten miles of downtown New Haven. After undergoing a comprehensive renovation of all public spaces and guestrooms in 2016 and with the city of New Haven’s strict zoning and design requirements, the Company expects the hotel to benefit from very limited new supply and continue to be a market leader. Other demand generators and local attractions include the Yale-New Haven Hospital, Smilow Cancer Center, Yale Peabody Museum, Lighthouse Point Park, and the Knights of Columbus Museum.
The Hilton Garden Inn Boston/Waltham is centrally located along the Route 128/Interstate 95 corridor, also known as “America’s Technology Highway.” Known for its high barriers to entry and strong fundamentals, Boston is a dynamic gateway market with a diverse and stable demand base, and is a premier destination for international meetings and conventions. The hotel benefits from exceptional corporate demand with 16.4 million square feet of office space situated within three miles of the property and another one million square feet under construction. The Company anticipates investing approximately $4.0 to $5.0 million into a complete renovation of all public spaces and guestrooms over the next two years.
Located in the heart of Cleveland’s central business district (“CBD”), the recently-renovated Residence Inn Cleveland Downtown is well-positioned within the CBD’s 9.5 million square feet of Class A office space, which includes the headquarters of Fortune 500 companies Sherwin-Williams, KeyCorp, and Cliffs Natural Resources. In recent years, Cleveland has become a global leader in the healthcare, biomedical engineering, and technology industries. Leisure demand generators such as Progressive Field, Quicken Loans Arena, Horseshoe Casino Cleveland, and the nightlife of 4thStreet are all located just a short walk away.
The Homewood Suites by Hilton Tucson/St. Philip’s Plaza University is located in St. Philip’s Plaza near the University of Arizona. The hotel’s premier location benefits from a balanced mix of corporate, university, and leisure demand. Corporate demand generators include Raytheon Missile Systems, Texas Instruments, IBM, Intuit Inc., and Universal Avionics, among many others. Other demand generators include the University of Arizona, one of the largest universities in the nation with over 40,000 students and 3,000 faculty members, St. Philip’s Plaza, a mixed-use development consisting of high-end dining and retail, the University of Arizona Medical Center, the University of ArizonaCancer Center, and Catalina Foothill tourism.