Sage Hospitality, Whitman Peterson Acquire 11 Hotels
Tuesday February 25th, 2014 - 9:54AM E
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DENVER—Sage Hospitality has purchased 11 hotels in partnership with Whitman Peterson, marking the second of an investment venture between the two companies.
Sage Hospitality and Whitman Peterson plan to acquire a sizable portfolio of select-service hotels in need of high-impact capital, operational, and/or brand improvements.
The first portfolio, purchased in March 2013, encompassed seven branded, but under-capitalized hotels and is in the final stages of renovation. This new transaction adds 11 hotels to the venture, bringing Sage's total hotels under management to 76 nationally. The newly added properties are located in several metropolitan areas strategic to the venture, including Austin, Denver, Indianapolis and Dallas.
"The properties are geographically diverse and encompass a variety of top tier brands in the Marriott, Hilton, and Hyatt systems," stated Michael Everett, chief investment officer for Sage Hospitality. "We see significant upside from capital expenditure and operational improvements, which is perfectly inline with our investment strategy."
Everett continued, "With an acquisition price of approximately $70,000/key and an approximately 10% cap rate on trailing 12 income—we believe this portfolio offers a unique combination of in-place yield and attractive upside, at a basis after renovation that is well below replacement cost.”
Tags: Sage Hospitality • Whitman Peterson • Hospitality • Acquisitions •
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