American Realty Capital Hospitality Trust, Inc. announced today that it has agreed to acquire a portfolio of 26 hotels for a purchase price of $351.4 million from Summit Hotel Properties, Inc., a publicly-traded hotel real estate investment trust.
The Summit portfolio consists of 25 premium-branded select-service and extended-stay hotels and one full-service hotel and totals 2,793 rooms in 11 states. The hotels are franchised by global brands including Marriott International, Hilton Hotels & Resorts, Hyatt Hotels, and InterContinental Hotels Group. Flags include Fairfield Inn & Suites, Courtyard by Marriott, Hampton Inn, SpringHill Suites, and Residence Inn.
The 26 hotels represent approximately 19.6 percent of the Summit’s pro forma hotel EBITDA. The trailing twelve month RevPAR among the 26 properties of $81.30 was 19.7 percent below the pro forma RevPAR for the remaining 64 hotels of $101.26 as of March 31, 2015.
The sale of the properties is scheduled to close in three separate tranches, with the current estimated sale dates in September 2015, October 2015, and January 2016.
