Summit Hotel Properties today announced it has purchased four leading-brand, limited-service hotels. These transactions are part of the overall growth strategy of The Summit Group, a leading developer, owner, and manager of upscale limited-service hotels nationwide. Under these agreements, Summit has purchased 316 rooms for approximately $18 million—or $57,000 per room—bringing the total number of properties in The Summit Group’s portfolio to 60 hotels across 21 states. The Company also plans to spend $2.5 million in soft-goods renovation expenses and other capital improvements, bringing the projected total investment to approximately $65,000 per room.
“We are gaining true momentum as we continue to execute our growth strategy, which is based on the strategic acquisition of leading-brand hotel properties in the upscale, limited-service arena,” said Kerry W. Boekelheide, chief executive officer and chairman of The Summit Group, Inc. “These newest properties build upon our presence in existing markets, while we continue to identify new markets that will help us expand geographically.”
Summit’s new properties include:
—Fairfield Inn by Marriott - 80-room hotel that will be converted to a Fairfield Inn & Suites
—Residence Inn by Marriott - 78-room hotel
—Both the Fairfield Inn and the Residence Inn will go through a soft goods renovation this fall. Both are located in the upscale Memphis suburb of Germantown, TN, and were purchased from Master Hospitality Services, Inc.
—Towneplace Suites by Marriott - 95-room hotel in St. Louis suburb Fenton, MO, also will be renovated this fall. Summit purchased this hotel from Dominion Hospitality
—Holiday Inn Express - 63-room hotel in Boise, ID, for a total of three Summit-owned properties in this market. The seller was Sonomar of Boise
The Company also expects to break ground soon on a 116-room Cambria Suites by Choice Hotels International, which is currently slated to be open in the summer of 2006. The hotel will be built on a site near the airport in Boise adjacent to the Company’s Hampton Inn and Fairfield Inn.
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