Equity Inns has announced the completion of the purchase of three hotels with a combined 378 rooms, purchased for approximately $69,000 per key.Two of the hotels are SpringHill Suites by Marriott located in the Texas markets of San Antonio and Houston, while the third is a Fairfield Inn & Suites located in Atlanta (Vinings) directly across from Home Depot’s world headquarters.
In separate transactions, Equity Inns, sold two 20 year-old Hampton Inn properties. The Company sold its 132-room Hampton Inn Denver (Aurora), Colorado for $3.8 million, which equates to an average cap rate of approximately 2.9% based upon trailing twelve months net operating income. This property will be removed from the Hampton system. The other hotel sold by the Company is a 122-room property located in North Little Rock, Arkansas and was sold for a total price of $4.4 million or a cap rate of approximately 7.7% based upon the property’s trailing twelve months net operating income.
The sale of both of these properties is consistent with Equity Inns’ continued focus on upgrading the Company’s portfolio with newer, higher growth potential assets while disposing of non-core, older hotels.
The Company also sold a 3.5 acre land tract that it owned in the Salt Lake City suburb of Sandy, Utah for $2.0 million. The Company originally bought the land in 1999 for the purpose of developing a 200 room Marriott Hotel. Due to market and economic feasibility issues in the area, the Company opted to sell the land rather than pursue its development.