AUSTIN, Texas—Summit Hotel Properties announced it has closed on the joint venture transaction for the acquisition of a 252-room Holiday Inn Express property located on Fisherman’s Wharf in San Francisco, Calif.
The company acquired the hotel from an unaffiliated seller for a purchase price of $60.5 million through a joint venture with an affiliate of IHG (InterContinental Hotels Group). The joint venture gives the company an approximate 80 percent ownership interest in the hotel, which will be operated under a long-term IHG management agreement. Summit expects the joint venture to spend an aggregate of approximately $3.0 million for improvements within the next 12 months.
“We are excited about the opportunity to enter the San Francisco market,” said Dan Hansen, president and CEO of the Company. “We are also very pleased that our relationship with IHG has provided us with the opportunity to source quality acquisitions like this and we expect to continue our growth with them.”
Features of the Hotel are in line with the $1 billion Holiday Inn brand family’s global brand relaunch, which was the largest project of its kind ever in the hospitality industry. The relaunch program has created a more contemporary brand image, including redesigned logo and signage, as part of the drive to increase the portfolio’s quality and consistency around the world.