June 22, 2017—CBRE Hotels announced that it arranged the sale of an 812-room, five-property hotel portfolio on behalf of Xenia Hotels & Resorts, Inc. The portfolio, which is located throughout four states, was acquired by an affiliate of Summit Hotel Properties, Inc. for $163 million or $201,000 per room.
The properties included in the transaction are:
• C/Blackstone Hotel, Fort Worth, Texas; 203 rooms
• Courtyard by Marriott Kansas City/Country Club Plaza, Kansas City, Missouri; 123 rooms
• Courtyard by Marriott Pittsburgh Downtown, Pittsburgh, Pennsylvania; 182 rooms
• Hampton Inn & Suites Baltimore/Inner Harbor, Baltimore, Maryland; 116 rooms
• Residence Inn Baltimore/Inner Harbor, Baltimore, Maryland; 188 rooms
CBRE Hotels’ Arpit Shah, Ron Danko and Andy Wimsatt exclusively represented seller. Summit plans to spend approximately $13 million – $16 million in capital improvements over the next two years.
“Strong interest in the portfolio was driven by the ability to purchase institutional-quality, boutique-oriented assets affiliated with some of the industry’s most premium brands. In addition, the hotels offer distinctive historic architectual elements, dynamic locations within urban settings in geographically-diverse primary markets across the U.S. and meaningful revenue growth opportunity through capital investment,” reported Mr. Shah.
Four of the five hotels are adaptive reuse of unique, historic buildings; only the Residence Inn was purpose-built. The Fort Worth asset was originally constructed 1929 as the famed Blackstone Hotel and affiliated with the Courtyard by Marriott brand in 1999. The Courtyard Kansas City was originally developed in 1925 as the luxury Park Lane Apartments and converted to the Courtyard by Marriott in 2006. The Pittsburgh property was formerly four office buildings originally built in the early 1900s and converted to a Courtyard by Marriott in 2004. The Hampton Inn & Suites is housed in the former U.S. Fidelity and Guarantee Bank Building constructed in 1906 and converted to a lodging facility in 2004.
CBRE Hotels is a specialized advisory group within CBRE providing capital markets, consulting, investment sales, research and valuation services to companies in the hotel sector. CBRE Hotels is comprised of over 385 dedicated hospitality professionals located in 60 offices across the globe.