HOUSTON -Summit Hotel Properties has bought the Hilton Garden Inn located in the Energy Corridor of Houston at 12245 Katy Freeway. The acquisition marks the second Hilton Garden Inn owned by Summit in the Houston area.
Summit acquired the 190-room Hilton Garden Inn located in Houston on August 15, 2014 for a total purchase price of $36 million and entered into a management agreement with American Liberty Hospitality.
The property was built in 2008 and Summit anticipates spending $3.2 million in capital improvements over the next twelve months. The company anticipates an estimated post-renovation next twelve month (“NTM”) capitalization rate in the range of 8.00 percent to 8.50 percent based on management’s current estimate of future net operating income. Summit expects the hotel to generate $1.1 million of adjusted earnings before interest, taxes, depreciation and amortization (“EBITDA”) in 2014.
“We are very pleased with the acquisition of our second property in the Houston market,” said Summit President and CEO Dan Hansen.The Hilton Garden Inn is located in the heart of the Houston Energy Corridor, which is home to many of the world’s largest energy companies including BP America, Citgo Petroleum, ConocoPhillips, ExxonMobil and Shell Oil Company. With nearly 19 million square feet of existing office space and an estimated 10.7 million of additional square feet to be added by 2030, the Energy Corridor is rapidly expanding.