Sage Hospitality & Whitman Peterson Acquire 11 Hotels in Second Portfolio Purchase of Their Venture
February 25, 2014 7:36am
The first portfolio, purchased in March of 2013, encompassed seven well-branded, but under-capitalized hotels and is in the final stages of renovation. This new transaction adds 11 hotels to the venture – bringing Sage's total hotels under management to 76 nationally. The newly added properties are located in several metropolitan areas strategic to the venture, including Austin, Denver, Indianapolis, and Dallas.
"The properties are geographically diverse and encompass a variety of top tier brands in the Marriott, Hilton, and Hyatt systems," said Michael Everett, Chief Investment Officer for Sage Hospitality. "We see significant upside from capital expenditure and operational improvements, which is perfectly inline with our investment strategy." Everett continued, "With an acquisition price of approximately $70,000/key and an approximately 10 percent cap rate on trailing 12 income – we believe this portfolio offers a unique combination of in-place yield and attractive upside, at a basis after renovation that is well below replacement cost."
"We are thrilled to continue to execute on our joint strategy with Sage," said Wes Whitman, of Whitman Peterson. "We and Sage look forward to working with brokers, owners and the brands to identify similar individual properties and portfolios to acquire."
Tags: sage hospitality,
Contact: Kate Davis, Sage Hospitality
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