Summit Snags Austin Hampton Inn & Suites for $53 Million

Sep 26, 2014
CoStar

Summit Hotel Properties earlier this month acquired the first property in the home of their corporate offices with the purchase of the 209-guestroom Hampton Inn & Suites in downtown Austin, TX. The asset sold for $53 million, or approximately $254,000 per key


Construction on the hotel was completed in 2002 at 200 San Jacinto Blvd. one block from the Austin Convention Center and Lady Bird Lake in the city's central business district


Over the next year, Summit plans to invest approximately $2.4 million into the asset, which the company expects to produce a post-renovation next 12-month (NTM) cap rate in the range of 8% to 8.5% - based on management’s current projection of future net operating income - and generate approximately $1.4 million of adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) through the balance of 2014


Interstate Hotels & Resorts will now handle management responsibilities at the 127,191-square-foot, 16-story hotel



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