GIC Summit Hospitality JV Buys 27 Hotel Portfolio from NewcrestImage
Posted on 11/04/2021
On November 2, 2021, Summit Hotel OP, LP, the operating partnership of Summit Hotel Properties, Inc., and Summit Hospitality JV, LP, the company’s joint venture with GIC Private Limited entered into a contribution and purchase agreement with NewcrestImage Holdings, LLC, a Delaware limited liability company, and NewcrestImage Holdings II, LLC, a Delaware limited liability company. The agreement is to acquire a portfolio of 27 hotel properties, containing an aggregate of 3,709 guestrooms, and two parking structures, containing 1,002 spaces, and various financial incentives for an aggregate purchase price of US$ 822.0 million, which is to be paid at closing in the form of 15,864,674 common units of limited partnership of the Operating Partnership Common Units, 2,000,000 preferred units of limited partnership of the Operating Partnership newly designated as 5.25% Series Z Cumulative Perpetual Preferred Units (Liquidation Preference $25 Per Unit), US$ 410.0 million cash proceeds from a term loan to be entered into by subsidiaries of the Joint Venture, the assumption by subsidiaries of the Joint Venture of approximately US$ 6.6 million in PACE loan debt and approximately US$ 195.0 million cash to be contributed by GIC, as a limited partner in the Joint Venture.
GIC’s 49% estimated equity contribution of US$ 208 million will be in the form of cash.
The total consideration for the Transaction is comprised of US$ 776.5 million, or US$ 209,000 per key, for the 27-hotel portfolio, US$ 24.8 million for the two parking structures and US$ 20.7 million for the various financial incentives.
Advisors
BofA Securities, Inc. is acting as financial advisor and Hunton Andrews Kurth is acting as legal counsel to the Company on the Transaction. Goodwin Procter, Munsch Hardt Kopf & Harr, Haynes and Boone, and Colven & Tran are acting as legal counselors to NewcrestImage.
Portfolio Asset Listing
Hotel
AC Hotel by Marriott Houston Downtown. Houston
AC Hotel by Marriott Oklahoma City Bricktown. Oklahoma City
AC Hotel by Marriott Dallas Downtown. Dallas
Residence Inn by Marriott Dallas Downtown. Dallas
AC Hotel by Marriott Frisco Station. Dallas
Residence Inn by Marriott Frisco Station. Dallas
Canopy by Hilton Frisco Station. Dallas
Canopy by Hilton New Orleans (1). New Orleans
Courtyard by Marriott Amarillo Downtown. Amarillo
Courtyard by Marriott Grapevine. Dallas
TownePlace Suites by Marriott Grapevine. Dallas
Embassy Suites by Hilton Amarillo Downtown. Amarillo
Hampton Inn & Suites by Hilton Dallas Downtown. Dallas
Hilton Garden Inn by Hilton College Station. Bryan-College Station
Hilton Garden Inn by Hilton Longview. Longview
Hilton Garden Inn by Hilton Grapevine. Dallas
Holiday Inn Express & Suites Grapevine. Dallas
Holiday Inn Express & Suites Oklahoma City Bricktown. Oklahoma City
Homewood Suites by Hilton Midland. Midland-Odessa
Hyatt Place Dallas Grapevine. Dallas
Hyatt Place Dallas Plano. Dallas
Hyatt Place Lubbock. Lubbock
Hyatt Place Oklahoma City Bricktown. Oklahoma City
Residence Inn by Marriott Tyler. Tyler
SpringHill Suites by Marriott Dallas Downtown. Dallas
SpringHill Suites by Marriott New Orleans. New Orleans
TownePlace Suites by Marriott New Orleans. New Orleans
Parking
Dallas Parking Structure. Dallas, TX
Frisco Parking Structure. Dallas, TX
