Summit Hotel Properties, Inc., has just completed the acquisition of the 83-room Hampton Inn & Suites in Nashville, Tennessee, for a total $8 million. The deal represents Summit Hotel Properties’ eleventh hotel acquisition since its IPO on February 2011.
Hampton Inn & Suites is one of the most exclusive hotel properties in downtown Nashville, offering a whole host of conveniences and luxury amenities for guests wishing to stay in the heart of Music City. Located at 310 4th Avenue South, he hotel offers its guests a variety of clean and spacious rooms, including standard guest rooms and exclusive suites. In-room amenities include high speed Wi-Fi internet connections, flat screen TVs and alarm clock/radios, as well as the super-comfy Hampton bed™ which you won’t find in any other hotel. Other amenities at the Hampton Inn & Suites include state-of-the-art conference facilities, as well as exhibition spaces, a fitness center and a swimming pool.
In an official press release announcing the acquisition, Summit Hotel Properties said that it didn’t plan to stop at just purchasing the hotel. The company has outlined plans to transform the Hampton Inn & Suites with an additional $500,000 to be spent on renovating the property. The company hopes to secure a post-renovation NTM capitalization rate in the range of 8.5% to 9.5%, based on its current estimate of EBITDA over a 12-month period ending in June next year.
Dan Hanse, CEO and company president of Summit Hotel Properties, said that the purchase of Hampton Inn & Suites in Nashville was a textbook acquisition for his company.
“It ticks every box on our simple goal of acquiring top hotel brands in the best market at the best possible rates. An added advantage of this acquisition is that we’re able to cluster our properties, just as we have done in other markets across the US. The Nashville market is something that excites us, and this hotel represents a great addition to our portfolio. The consistent execution of our strategy demonstrates that we’re providing excellent value for our investors,” explained Hanse.
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