$10.5 Million at 7.7 Percent Cap Rate: Austin Hotel REIT secures Hotel in Las Colinas

In Irving, Texas, Austin-based Summit Hotel Properties sold its 128-room Holiday Inn Express & Suites located in the Las Colinas project in Irving, near Dallas for $10.5 million.

The sales price represents a capitalization rate of 7.7 percent on the hotel’s net operating income, including planned capital improvements, for the trailing twelve months ended March 31, 2016.

“We are very pleased to have sold this hotel at a price we believe validates the benefits of premium select-service hotels. With RevPAR nearly 30 percent below our portfolio’s average, this sale demonstrates our commitment to enhancing portfolio quality,” said President and CEO Daniel P. Hansen.

The hotel was not part of the previously reported disposition of 26 hotels to affiliates of American Realty Capital Hospitality Trust, Inc.

In Summit Hotel Properties, Inc. is a publicly, traded hotel REIT, focused primarily on owning premium-branded, select-service hotels in the upscale segment of the lodging industry. Summit’s portfolio consists of 82 hotels with 10,971 rooms located in 23 states.

June 1, 2016