LOS ANGELES and WASHINGTON, D.C. – August 16, 2018 – Berkadia’s Hotels & Hospitality group announced today the $46.5 million sale of a three-hotel property portfolio, consisting of a Hilton Garden Inn, a Hampton Inn & Suites and a Hyatt Place. Managing Directors Mark Morris and Kyle Stevenson and Senior Director Dan Hawkins of the Washington, D.C. Metro office, along with Senior Director Matt Bailly of the Los Angeles office, completed the sale on behalf of Summit Hotel Properties. The transaction closed on July 24.
“This portfolio featured three outstanding properties in two top investment markets – Nashville, Tennessee, which continues to post record annual visitor numbers, and Phoenix, which remains an in-demand destination both nationally and internationally,” said Morris. “Summit was focused on a targeted approach to finding the right buyer for these properties, all three of which were market leaders with occupancy rates in the 80 percent range. We were able to make the connection to a strong buyer who saw the advantages of buying in these growing markets with room to run.”
The portfolio includes two properties in the Nashville-Smyrna area and one in North Phoenix. The Hampton Inn & Suites Nashville-Smyrna, an 83-room property, and The Hilton Garden Inn Nashville-Smyrna, a 112-room property, are well-located near regional medical, manufacturing, distribution and higher education hubs and within 15 minutes of downtown Nashville. Both have recently undergone significant capital improvements.
The Hyatt Place Phoenix-North is a 127-room property located in proximity to PING Golf’s headquarters, the Metrocenter Mall redevelopment and other established industry clusters including aerospace engineering and manufacturing, healthcare and financial services.
“Summit’s properties were well-managed, institutional quality assets with great cashflow and premium Hilton and Hyatt brand affiliations,” noted Stevenson. “Given their respective locations in regions with steadily growing economies, the buyer expects to see their value grow.”
Berkadia’s Hotels & Hospitality group combines best-in-industry innovation, knowledge and experience with the most comprehensive suite of products and services, backed by relentless customer service and support to empower clients to capitalize on the right opportunities at the greatest value. The group serves clients across the country, offering a full set of advisory, investment sales, underwriting and loan origination services and products including Life Company, Proprietary Bridge Lending and Capital Markets Advisory Services. In 2017, the team completed more than 30 transactions from Washington, D.C. to Palo Alto, California.