Summit Hotel Properties and an affiliate of IHG announced on Wednesday the closing of a US$60.5 million joint venture purchase of the 252-room Holiday Inn Express & Suites San Francisco Fisherman’s Wharf.
The seller was not disclosed, and Summit will own 80% of the hotel with IHG owning the remainder. The hotel will receive a US$3 million renovation and be managed by IHG, Denham, England, under its current name. The REIT said it anticipates a post-renovation estimated NTM EBITDA multiple for the hotel in the range of 11.0x to 12.0x based on management’s current estimate of EBITDA.
“The joint venture purchase with Summit is yet another example of us delivering consistently on our asset strategy, as well as working with high quality ownership groups,” said Kirk Kinsell, president, Americas, IHG.
The hotel joins the 10 IHG-branded hotels in the portfolio of Summit Hotel Properties, Austin, Texas.
“We are excited to enter the San Francisco market,” said Dan Hansen, Summit’s president and CEO.