This is Equity Inns' second Hilton Garden Inn; the other is in Louisville, KY. This is also among the REIT's growing Florida additions to its portfolio of 109 hotels in 34 states. In December 2004 it acquired two Marriott branded properties in Jacksonville, which followed its purchase of five Hampton Inn branded properties in the eastern part of South Florida.
Regarding this acquisition, Howard Silver, president and CEO, says in a statement, "The Fort Myers/Bonita Springs area is the third fastest growing MSA in the US and is the dominant commercial hub for the expanding southwest Florida market." With this purchase, he adds, "we further increase our presence in the state of Florida and expand into a new market for us."
The Hilton property opened in September 2001 in a market that, according to Equity Inns, is dominated by hotels more than 15 years old. It is located in the center of the city's predominate office market, "which includes more than one million sf within one mile," according to the buyer's statement.
The purchase price represents an approximate 10% capitalization rate on a trailing 12 month's net operating income. As part of the acquisition, McKibbon Hotel Management Inc. will manage the hotel with incentive-based management contracts. McKibbon currently manages 13 Marriott brand hotels for Equity Inns in the southeast US. This marks the first time McKibbon has been selected to manage a hotel that the company did not acquire from McKibbon Group.
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