Summit to sell 26 hotels for US$351m
Summit Hotel Properties has entered into multiple purchase and sale agreements with affiliates of American Realty Capital Hospitality Trust for the sale of 26 hotels for a combined price of approximately US$351.4 million.
The total sales price represents a capitalization rate in the mid 7 percent range based on trailing 12-month net operating income as of March 31, 2015, which includes planned capital improvements at the properties.
?We are very excited at the opportunity to recycle capital on a larger scale,? said president and CEO Dan Hansen. ?This proposed transaction will enable us to continue to improve our asset mix and upgrade our portfolio with additional accretive acquisitions with strong growth profiles and diverse demand generators.
?Recycling capital to create long-term value for our shareholders is a proven strategy for us and one we consider to be a core strength.?