Publicly traded real estate investment trust Summit Hotel Properties recently completed the acquisition of Marriott Boulder in Colorado for $61.4 million. Summit also entered a management agreement with Stonebridge Realty Advisors.
"We are excited about the opportunity to add another high-quality hotel to our portfolio," said president and chief executive Daniel P. Hansen. "The asset has a number of unique attributes, including its compact size of 157 guestrooms and healthy hotel EBITDA margin of nearly 41.0 percent, that make it a great complement to our diverse portfolio of premium select-service hotels," Mr. Hansen stated.
Over the last 12 months, Marriott realized healthy $167 revenue per available room (RevPAR), reflecting a 51% premium over Summit’s pro forma for the portfolio.
Despite the high barrier to entry, the Boulder market is dynamic and represents a cornucopia of demand opportunities from corporate and retail establishments. Among others, marquee employers in the area include IBM, Google, NCAR, Qualcomm and Covidien. It is also in the locale of the University of Colorado, Folsom Field and Pearl Street Mall, which is known for its diverse collection of galleries, shops and restaurants. It is also a prime location for outdoor activities, as it sits between Denver and the Rocky Mountains.
Summit targets premium branded hotels serving the upscale segment of the hospitality market. Currently, its portfolio consists of 80 hotels located in 23 states.