INDIANAPOLIS—Summit Hotels Properties Inc. has closed on the purchase of six Midwest hotels for $170 million.
The acquisition includes a portfolio of four hotels that contain an aggregate of 786 guestrooms. The properties include 135-guestroom Fairfield Inn & Suites by Marriott and the 198-guestroom SpringHill Suites by Marriott in Louisville, Ky.; the 156-guestroom SpringHill Suites by Marriott and the 297-guestroom Courtyard by Marriott here. Summit funded the acquisition from White Lodging through a combination of bridge financing and borrowings under its senior secured revolving credit facility.
Summit also closed on the previously announced acquisitions of two Minneapolis hotels; the 93-guestroom Holiday Inn Express & Suites and the 97-guestroom Hilton Garden Inn for a total purchase price of approximately $17 million. The company funded the acquisitions with loan assumptions of $3.7 million and $6.4 million, respectively, and borrowings under its senior secured revolving credit facility. Summit expects to spend an aggregate of approximately $3.6 million in improvements on the properties during the next 12 months
“These six hotels are very well positioned amid multiple demand generators in their respective markets,” said Dan Hansen, president and CEO, in a statement. “We are excited about the opportunity to extend our nationwide reach into the Indianapolis and Louisville markets as well as grow our presence in Minneapolis. These acquisitions squarely hit the marks of our simple strategy; top brands in top markets.”