Summit Hotel Buys Hampton Inn & Suites

(RTTNews) - Summit Hotel Properties (INN) said Monday that it has acquired the Hampton Inn & Suites located in downtown Austin, Texas for $53.0 million.

The 16-story, 209-guestroom Hampton Inn & Suites is located in downtown Austin, Texas, one block from the Austin Convention Center and Lady Bird Lake, in the central business district.

The acquisition is the first property owned by Summit in the home of their corporate offices. The company has entered into a management agreement with Interstate Hotels & Resorts.

The property was built in 2002 and the company anticipates spending about $2.4 million in capital improvements over the next twelve months. The company estimates a post-renovation next twelve month capitalization rate in the range of 8.00 percent to 8.50 percent based on management's current projection of future net operating income.

The company expects the hotel to generate about $1.4 million of adjusted earnings before interest, taxes, depreciation and amortization through the balance of 2014.