HOUSTON - The 182-room Hilton Garden Inn has been sold in the Galleria area of Houston. The property sold for $37.5 million, which included $17.9 million in assumed mortgage debt.
Summit Hotel Properties Inc., the buyer, plans to spend $3.1 million in capital improvements over the next twelve months to update the property built in 2005.
Summit anticipates a post-renovation estimated NTM capitalization rate in the range of 8.75 percent to 9.50 percent based on management's current estimate of net operating income.
In December, Houston's Galleria area hotel market had an occupancy rate of 78 percent, with average nightly room rates at $150, according to PKF Consulting USA.
Source: Summit Hotel Properties Inc.
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