The hotels, a Homewood Suites and a Hampton Inn, both located here, were acquired for $74,000 per room from the Paramount Hotel Group, which will continue to manage the properties for the next three years. The acquisition price includes an additional $1.1 million in investment money to refurbish both properties.
The acquisition brings the number of hotels owned by Equity to 124. The Germantown, TN based REIT owns hotels under the Hampton Inn, Courtyard, Amerisuites, Residence Inn, Homewood Suites, Comfort Inn, Hilton and Holiday Inn flags, primarily in the Southwest.
Howard Silver, Equity's president and chief executive officer, was unavailable for comment but when the REIT's acquisition plans were announced in August he told GlobeSt.com that the REIT opted to move into the Boston market because it had deflated values that were likely to rise over the next few years. The two Peabody hotels were selected based on Equity's analysis of the Peabody office market, which indicated an upside to that market, Silver said.
The REIT also said it will enter the California market with the $22-million acquisition a 145-room, five-year-old Marriott Courtyard in the San Diego suburb Carlsbad. The firm signed a letter of agreement to purchase the property two weeks ago with entities controlled by Huntington Hotel Group, a developer and operator of Marriott and Hilton branded hotels.
Equity's Bay State acquisitions were the second major hotel deal in the Boston area in the last three months. Last month, LaSalle Hotel Properties completed its acquisition of the Westin Copley Plaza for $318 million in a deal that makes the sale one of the largest hotel acquisitions in the area.
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