Friday January 31st, 2014 - 10:11AM
AUSTIN, TX—Summit Hotel Properties, Inc. acquired the Four Points by Sheraton located in San Francisco as well as completed two previously announced dispositions.
Summit Hotel Properties acquired the 101-guestroom Four Points by Sheraton for a purchase price of $21.3 million and has entered into a management agreement with Pillar Hotels and Resorts, L.P. The company plans to spend approximately $1.3 million on capital improvements and anticipates a post-renovation estimated NTM capitalization rate in the range of 8.5% to 9.5% based on management’s current estimate of net operating income.
“We are very happy to expand our presence in the San Francisco market,” said Dan Hansen, president and CEO of Summit Hotel Properties. “This property is a great addition to our portfolio with its proximity to the San Francisco International Airport as well as the unique mix of multiple demand generators.”
Summit Hotel Properties also announced the completion of two previously announced dispositions, the 89-guestroom AmericInn Hotel & Suites and the 57-guestroom Aspen Hotel & Suites located in Fort Smith, AR for a total sales price of $3.1 million.