LOS ANGELES and WASHINGTON, D.C. – Berkadia’s Hotels & Hospitality group announced the $46.5 million sale of a three-hotel property portfolio consisting of a Hilton Garden Inn and a Hampton Inn & Suites, both in the Nashville-Smyrna area, and a Hyatt Place in North Phoenix.
Managing Directors Mark Morris and Kyle Stevenson and Senior Director Dan Hawkins of the Washington, D.C. Metro office, along with Senior Director Matt Bailly of the Los Angeles office, completed the sale on behalf of Summit Hotel Properties. The transaction closed on July 24.
“This portfolio featured three outstanding properties in two top investment markets–Nashville, Tennessee, which continues to post record annual visitor numbers, and Phoenix, which remains an in-demand destination both nationally and internationally,” Morris says. “Summit was focused on a targeted approach to finding the right buyer for these properties, all three of which were market leaders with occupancy rates in the 80 percent range. We were able to make the connection to a strong buyer who saw the advantages of buying in these growing markets with room to run.”
The Hampton Inn & Suites Nashville-Smyrna, an 83-room property, and The Hilton Garden Inn Nashville-Smyrna, a 112-room property, are near regional medical, manufacturing, distribution, and higher education hubs and within 15 minutes of downtown Nashville. Both have recently undergone significant capital improvements.
The Hyatt Place Phoenix-North is a 127-room property located in proximity to PING Golf’s headquarters, the Metrocenter Mall redevelopment, and other established industry clusters including aerospace engineering and manufacturing, healthcare, and financial services.
“Summit’s properties were well-managed, institutional quality assets with great cashflow and premium Hilton and Hyatt brand affiliations,” Stevenson notes. “Given their respective locations in regions with steadily growing economies, the buyer expects to see their value grow.”
Berkadia is a joint venture of Berkshire Hathaway and Jefferies Financial Group. In 2017, the hotels and hospitality group completed more than 30 transactions from Washington, D.C. to Palo Alto, California.