The Courtyard Fort Worth Downtown Blackstone hotel is part of a group of properties that have been acquired by Summit Hotel Properties Inc. from Xenia Hotels & Resorts Inc.
The two companies announced Monday June 5 that Summit has acquired an 812-guestroom, five-hotel portfolio from Orlando-based Xenia for $163 million.
The portfolio includes the 203-guestroom Courtyard Fort Worth Downtown/Blackstone, the 123-guestroom Courtyard Kansas City Country Club Plaza, the 182-guestroom Courtyard Pittsburgh Downtown, the 116-guestroom Hampton Inn & Suites Baltimore Inner Harbor, and the 188-guestroom Residence Inn Baltimore Downtown/Inner Harbor. The total purchase price represents an 11.1-times multiple on the hotels’ combined trailing twelve month EBITDA as of April 2017, according to a news release from Xenia.
Austin-based Summit said it will be executing new franchise agreements with the respective franchisors for the five hotels and expects to make $13 million to $16 million in capital improvements “required under these agreements” over the next two years.
“The completion of this transaction will represent the continued execution of our strategy of acquiring premium-branded upscale hotels with efficient operating models while maintaining a geographically diversified portfolio,” said Chairman, President and CEO of Summit, Daniel P. Hansen. “All five of these hotels are located in prime locations in strong markets and exhibit many of the upside characteristics that are important to our investment criteria
The closing of the transaction is subject to customary closing conditions and is expected to occur within the next 30 days.
The Courtyard Fort Worth Downtown Blackstone, was originally known as the Blackstone hotel when it opened in 1929. According to the book, Cowtown Moderne, by Judith Singer Cohen, it was built by cattleman C.A. (Gus) O’Keefe at “the height (1928-29) of Fort Worth’s boom years.” The 23-floor, million dollar structure, again, according to Cohen, was designed by the St. Louis architectural firm of Mauran, Russell & Crowell. WBAP, Fort Worth’s first radio station had its office and other facilities on the 22nd floor and that was where Western Swing master Bob Wills cut the first version of his classic “San Antonio Rose.” The hotel was vacant from 1982 until 1999 when it reopened as a Courtyard by Marriott, just in time for Downtown Fort Worth’s revival.
Summit is a publicly-traded (NYSE: INN) real estate investment trust focused on owning premium-branded hotels with efficient operating models primarily in the upscale segment of the hotel and lodging industry. As of May 31, 2017, the company’s portfolio consisted of 76 hotels with a total of 10,705 guestrooms located in 22 states. Summit owns several hotels in the area, including a Hampton Inn & Suites and Fairfield Inn & Suites and a Hilton Garden Inn in Fort Worth and a Courtyard, Residence Inn and Hyatt Place in North Texas.
Xenia Hotels & Resorts is a self-advised and self-administered REIT that invests primarily in premium full service, lifestyle and urban upscale hotels. The publicly-traded company is on the NYSE under the XHR symbol.