Under-Construction Mpls. Hotel Sold For $38M
Summit Hotel Properties, Inc., a publicly traded real estate investment trust (REIT), has announced plans to acquire its second hotel in downtown Minneapolis.
The Austin, Texas-based REIT recently detailed plans to buy the 211-room Hampton Inn & Suites, which is currently under construction.
Summit Hotel Properties has hammered out an agreement to buy the Hampton Inn hotel for $37.7 million from Golden Valley-based Mortenson Development. Summit Hill expects to close on the acquisition of the hotel in mid-2015 when construction is complete.
The site, at 19 Eighth Street North, is just a half-block from Hennepin Avenue in the city’s theater district and not far from Target Field and Target Center. The site had been a surface parking lot.
“We look forward to the addition of another high-quality asset to our portfolio in a vibrant market such as downtown Minneapolis,” said Dan Hansen, Summit Hotel president and CEO, in a statement announcing the deal. “We are excited to be part of this development opportunity and work with Mortenson throughout the building process.”
At the end of 2013, Summit Hotel Properties paid $32.6 million to acquire the 213-room Hyatt Place in downtown Minneapolis. The hotel, part of the same building that houses the Centre Village condominiums, was previously a Comfort Suites hotel before being renovated and updated as a Hyatt Place.
Summit Hotel Properties owns four other Twin Cities metro hotels. The company’s other local properties include a Hampton Inn near the Mall of America in Bloomington, a SpringHill Suites in Bloomington, a Hilton Garden Inn in Eden Prairie, and a Holiday Inn Express & Suites in Eden Prairie.
As of March 7, Summit Hotel’s national portfolio included 89 hotels with 11,143 rooms in 22 states.