Summit acquires Tucson Embassy Suites; more sales

Summit Hotel Properties, through a joint venture with GIC, has acquired an Embassy Suites hotel in Tucson, AZ, while DSH Hotel Advisors has arranged the sale of a Red Roof PLUS+ property in Orlando and Huff, Niehaus & Associates has arranged the sale of a Kentucky Super 8 hotel.

Summit JV acquires Embassy Suites by Hilton Tucson/Paloma Village
Summit Hotel Properties Inc. has completed the acquisition of the 120-room Embassy Suites by Hilton Tucson/Paloma Village for $25.5 million through its joint venture with GIC.

The property’s location and Embassy Suites brand affiliation have allowed the hotel to consistently rank at the top of its competitive set, with an average RevPAR Index of nearly 150% over the last five years, according to Summit. While occupancy and ADR in the Tucson market are historically strongest in February and March, driven predominantly by leisure travel, the Embassy Suites benefits from year-round demand from a multitude of sources within the government, group and business transient segments.

The company’s joint venture with GIC also owns the Homewood Suites by Hilton Tucson/St. Philip’s Plaza University located less than three miles south of the newly acquired hotel.

The joint venture acquired the property with a combination of cash and an assumed loan that has a balance of approximately $13.3 million. The loan has a fixed interest rate of 4.99% and a maturity date of June 2028. After this transaction, the company maintains nearly $450 million of total liquidity and more than $150 million of current investment capacity permitted under its current credit facility amendments to pursue future investment opportunities.

Summit expects the hotel to generate a full-year 2022 net operating income yield between 7.0% and 7.5%.

DSH Hotel Advisors arranges sale of Orlando Red Roof PLUS+
DSH Hotel Advisors has revealed that Managing Principal Dennis S. Hopper arranged the sale of the Red Roof PLUS+ Orlando-Convention Center/Int’l Dr for an undisclosed price. DSH Hotel Advisors represented the seller, QDI 1 LLC, and an outside brokerage firm represented the buyer, HKB Investment Group.

“We generated over 15 offers throughout the course of marketing the Red Roof PLUS+ for sale; we saw significant interest from buyers throughout the country and internationally,” said Hopper. “Ultimately, the buyer for this asset was represented by an outside brokerage firm, and we readily engaged in an agreement to collaborate with them in an effort to maximize the sale price on behalf of our client.”

The property is located next to ICON Park and approximately two miles from Universal Studios, the Orange County Convention Center, CityWalk and SeaWorld.

Huff, Niehaus arranges sale of Super 8 hotel in Kentucky
Huff, Niehaus & Associates Inc., a member of Hotel Brokers International, has arranged the sale of the Super 8 hotel located in Elizabethtown, KY. The property was exclusively listed by Brandt Niehaus, president of the firm.

“The hotel represents an excellent value at a price well below replacement cost, at an interstate location near attractions and only minutes from the future site of Ford BlueOvalSK Battery Park,” said Niehaus, who worked closely with the buyer and the seller. “We had a high level of interest with multiple offers. The 62-room family-owned hotel was in very good shape with minimal improvements required. It was sold to an experienced hotel owner/operator with several other franchise hotels.”