AUSTIN, Texas—Summit Hotel Properties, Inc. has announced that it closed on the previously announced acquisition of the Hampton Inn & Suites located in Minneapolis, Minnesota.
The company acquired the 211-guestroom Hampton Inn & Suites on April 13, 2015 for a total purchase price of $39.0 million and entered into a management agreement with Interstate Hotels & Resorts. The company anticipates an estimated forward capitalization rate in the range of 7.0 percent to 8.0 percent based on management’s current estimate of the hotel’s 2016 net operating income.
“We are extremely pleased with the recent completion of the Hampton Inn & Suites located in the heart of downtown Minneapolis,” said Daniel P. Hansen, president and chief executive officer. “This property is a wonderful addition to our nationwide portfolio of premium select-service hotels. The newly built Hampton Inn & Suites is in a prime urban location with direct access to the Minneapolis Skyway System and walking distance to the Block E Entertainment District, Target Field, Target Center, Minneapolis Convention Center and the new Minnesota Vikings stadium, currently under construction.”
