Summit Snaps Up Asheville Hotel
Hotels are breaking occupancy and RevPAR records this year, but there's still room to grow—in the right markets, such as Asheville. Summit Hotel Properties president and CEO Dan Hansen (far right, snapped at a Bisnow event) says the Asheville market thrives on tourism and leisure demand, but that's not all. "Drivers such as healthcare, advanced manufacturing and retail trade are also important," he notes. Recently, Summit acquired the Hotel Indigo in Asheville, along with a Hampton Inn in greater Boston.
The company paid $35M for the 115-room Hotel Indigo and entered into a management agreement with Interstate Hotels & Resorts. Summit plans to spend $400k on capital improvements during the next 12 months and anticipates a cap rate for the property in the range of 8% to 8.5%. Such a property in "this diverse and highly desirable market" makes a solid addition to Summit's portfolio, Dan says.