An affiliate of Summit Hotel Properties Inc. will acquire an 812-guestroom, five-hotel portfolio from Xenia Hotels & Resorts Inc. for $163 million.
The two companies announced that they executed a definitive agreement for the purchase of the portfolio, which is made up of the 203-guestroom Courtyard Fort Worth Downtown/Blackstone, the 123-guestroom Courtyard Kansas City Country Club Plaza, the 182-guestroom Courtyard Pittsburgh Downtown, the 116-guestroom Hampton Inn & Suites Baltimore Inner Harbor and the 188-guestroom Residence Inn Baltimore Downtown/Inner Harbor.
The purchase price, which translates to roughly $201,000 per key, represents an 11.1x multiple on the properties' combined trailing 12-month EBITDA as of April, according to a release.
Summit Hotel will be establishing new franchise agreements for the hotels and expects to spend approximately $13 million to $16 million in capital improvements required under such franchise agreements over the next two years.
The closing of the transaction is expected within the next 30 days, subject to certain customary closing conditions.