California + Bay Area + Hospitality | May 16, 2022

Hilton Garden Inn at SFO Sells for $75M

Summit Hotel Properties has announced the completion of the $75M sale of the Hilton Garden Inn, a 169-room hotel located on Gateway Boulevard at San Francisco Airport North in South San Francisco, CA. The transaction became final through a joint venture with GIC, and totals $444,000 per key.

The sale represents 1% capitalization rate based on the hotel’s net operating income after a 4% FF&E reserve and also allows Summit and GIC to forego a comprehensive $7M renovation that was scheduled for late this year.

The transaction will result in an estimated $20.5 million net gain and proceeds estimated to be $73 million, with Summit’s share equal to approximately $37 million. Summit, which has a portfolio of 100 hotels in 24 states, expects to use the net proceeds to help repay its only remaining 2022 debt maturity for $62 million.

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About Mark Nieto

Mark comes to ConnectCRE with an extensive background as a business and news reporter in San Francisco radio, as well as 35 years as a traffic reporter on several stations including KGO, KNBR, KCBS and KFRC. As a business reporter, Mark covered the tech world in Silicon Valley where he became familiar with real estate transactions in the hot Bay Area marketplace. He attended San Jose State University with a BA in Radio and TV Broadcasting and currently resides in the Lake Tahoe area where he gets to frequently enjoy all of his favorite activities: Golfing, Fishing, Hiking and Skiing.