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Hampton Inn Boston – Logan Airport – Image Credit Hilton
Summit Hotel Properties, Inc. has announced its plan to acquire two hotels, the Hampton Inn Boston – Logan Airport and the Hilton Garden Inn Tysons Corner, for $96 million, or $241,000 per key. The purchase, facilitated through a joint venture with GIC, is expected to be completed by the fourth quarter of 2024.
The 250-room Hampton Inn is located near Boston Logan International Airport and Downtown Boston, while the 149-room Hilton Garden Inn sits in Vienna, Virginia, close to downtown Washington, D.C. Both hotels are strategically placed in areas with high visitation and business activity.
The acquisition, representing an 8.8% capitalization rate based on forecasted 2024 net operating income, is part of Summit Hotel Properties’ capital allocation strategy. No significant capital expenditures are expected until the last quarter of 2026.
The deal will be financed through cash on hand and a $50 million term loan, raised in conjunction with an option on the GIC joint venture’s existing $200 million credit facility. Summit Hotel Properties’ estimated $24 million of required equity for its 51% share of the transaction will mainly come from the net sale proceeds from the recent sale of the Four Points by Sheraton San Francisco Airport.
Despite the announcement, Summit Hotel Properties has stated that there is no guarantee that the transaction will be completed on the agreed terms or at all.
