Summit Hotel REIT Goes Glamp With Latest Investment
Summit Hotel Properties has acquired a 90% joint venture interest in Onera Fredericksburg, a glamping property in the Texas Hill Country, as well as a 90% interest in an adjacent parcel for future expansion of the asset.
The deal is the first time a public REIT has made a standalone glamping investment, according to Summit, which owns an interest in more than 100 standard hospitality properties with more than 15,300 rooms nationwide. Summit didn't disclose a purchase price.
The deal is also part of a wider movement of investors toward outdoor-oriented hospitality properties.
“We have seen investor demand for outdoor hospitality properties explode as other sectors have continued to erode,” National Land Lease Capital partner Yogi Singh told Wealth Management.
Singh's company owns campgrounds, RV parks and marinas nationwide.
Glamping, a portmanteau of "glamorous" and "camping," refers to a hospitality property featuring tent or tent-like structures that offer various amenities and services not usually associated with traditional camping, often at resort levels and pricing.
Onera Fredericksburg has 11 units, all temperature-controlled with bathrooms and kitchens. Some of the units have a private patio and hot tub, and all have access to a pool, a sun deck, fire pits and a sauna.
The property was developed by Onera Escapes, whose portfolio includes more than 300 standard hotels, glamping properties and other short-term hospitality in the United States and Mexico. It opened in November 2021.
Onera Fredericksburg is also near the main street in Fredericksburg, a Hill Country town not far from both Austin and San Antonio, and known for its restaurants, shopping and wine.
Summit reported earlier this month that its third-quarter 2022 loss was $500K, an improvement from the same quarter in 2021, when the company lost $11M.
Summit's Q3 2022 revenue per available room increased 20% to $113.59 compared to the same quarter in 2021. Its average daily rate increased 14.9% to $158.39 compared to the same period in 2021, and occupancy increased 4.4 percentage points year-over-year to 71.7%.
