Recent transactions include Summit Hotel Properties completing the acquisition of the dual-branded AC Hotel/Element Miami Brickell; The Siegel Group acquiring five properties previously operated under the Hamilton Inn Extended-Stay brand; Provenance Hotels selling its minority interests in the Woodlark Hotel in Portland, OR, to majority shareholder NBP Capital; and Sandpiper Lodging Trust purchasing two Residence Inns in the Central Florida market.
Summit completes acquisition of dual-branded property in Miami
Summit Hotel Properties Inc. has completed the acquisition of the dual-branded 264-guestroom AC Hotel/Element Miami Brickell.
Summit’s initial purchase option was based on a gross hotel valuation of $89 million, or $337,000 per key, and the company funded its 90% equity interest totaling $38 million with the conversion of the previously funded $30-million mezzanine construction loan, which earned 9% cash interest during the loan term, and $8 million in cash. The transaction was financed with the assumption of a $47-million mortgage loan that has an interest rate of 1-Month Term SOFR + 300 basis points and a maturity date of June 30, 2025. The company projects that the hotels will generate a combined hotel EBITDA yield between 8.0% and 9.0% this year.
The project was developed by an affiliate of Robert Finvarb Companies LLC, a Miami-based developer, who will remain the company’s joint-venture partner with a 10% equity interest in the hotels. A $10-million letter of credit that supported the equity purchase option was released and the company will retain the option to acquire the remaining 10% equity interest of the hotels in December 2026.
The Siegel Group acquires five extended-stay hotels
The Siegel Group has acquired a portfolio of five extended-stay properties previously operated under the Hamilton Inn Extended-Stay brand for $29 million. These acquisitions increase the number of Siegel Suites and Siegel Select properties throughout the U.S. to 66 and mark the brand’s first location in Georgia and its further expansion into the Tennessee market.
Built between 1995-2002, the five-property portfolio is comprised of a mix of 562 studio and one-bedroom units all containing kitchenettes. Four of the properties are located in the Tennessee cities of Chattanooga, Cleveland and Knoxville, with the fifth location in Acworth, GA, which is part of the Atlanta metropolitan area. At the time of the acquisition, each of the properties demonstrated high occupancy and under-market rates, according to the company.
The Siegel Group will be operating each property under its Siegel Select brand. These newest locations will be renamed Siegel Select Chattanooga, Siegel Select Chattanooga 2, Siegel Select Cleveland, Siegel Select Knoxville and Siegel Select Atlanta/Acworth. As part of the repositioning process, the company will be making a number of improvements which include upgrades to the furniture and appliance packages and room amenities. Additionally, the exterior of each property will be painted along with other cosmetic upgrades including branding and signage that are characteristic of the Siegel Select brand.
Provenance Hotels sells minority interest in the Woodlark Hotel
Provenance Hotels has sold its minority interests in the Woodlark Hotel in Portland, OR, to majority shareholder NBP Capital in connection with the transaction, NBP has also acquired the management rights to the property. Terms of the deal were not disclosed.
The Woodlark Hotel is 151-room property housed within two historic structures brought together as one in the heart of downtown Portland.
“This is a strategic business move by NBP to acquire management rights to the Woodlark, along with the remaining interest in the hotel that we did not previously own,” said Lauren Noecker Robert, cofounder/CEO, NBP. “Provenance has been a great partner, and we look forward to continuing to work with them on the two other hospitality assets we own together in Seattle.”
“This mutually beneficial transaction presented a great opportunity to monetize one of Provenance’s minority interests,” said Katy Durant, president/CEO, Provenance. “We are pleased to have closed this transaction with NBP and will continue to work with them on two other projects in Seattle.”
Sandpiper Lodging Trust acquires Central Florida Residence Inn
Sandpiper Lodging Trust (SLT) has purchased two Residence Inn by Marriott extended-stay hotels located in the Central Florida market. One of the hotels, Sandpiper Gainesville, is located two miles southwest of the University of Florida in Gainesville, FL. The other hotel, Sandpiper Lakeland, is located 30 miles east of Tampa, near the Lakeland Linder International Airport. Terms of the deal were not disclosed.
“We are very excited about what these two Central Florida markets have to offer and believe that these two assets will serve as marquee additions to our portfolio,” said Carter Rise, CEO, SLT. “They are our first two Residence Inns. We are confident that with the management expertise of Sandpiper Hospitality and a substantial investment to renovate both properties they have a very bright future. We look forward to serving customers in these great markets and continuing the expansion of our presence throughout Florida.”
With hotels now in Tampa, Orlando, Gainesville and Lakeland, SLT has gained wide coverage of the Florida extended-stay hospitality market, demonstrating its high expectations for the Florida market moving forward. By acquiring two upscale Residence Inn extended-stay hotels, SLT has increased both its brand and sector diversity in one of its most strategic markets.