USA: Singapore-based select-service trust ARA US Hospitality Trust has acquired the Home2 Suites by Hilton in Colorado Springs from Chartwell Hospitality for £29 million.
Home2 Suites by Hilton, located at the foot of the Rocky Mountains, offers 119 rooms, a 24-hour business centre, meeting space, an indoor heated pool, and a combined fitness and laundry centre.
Chartwell Hospitality currently manages the property and will continue to do so.
Will Schaedle, executive vice president of Chartwell Hospitality, said: “Home2 Suites Colorado Springs, Colorado is a great property. We commenced operations at the end of October 2019 and have been honoured to provide a hotel designed for extended-stay travellers who wish to keep their normal routine. We’re excited to continue managing this high-quality, limited-service hotel for ARA.”
CEO of ARA Trust Management, Lee Jin Yong said: “We are pleased to acquire this strong performing asset which has outperformed the Colorado Springs market, sub-market and its competitive set in 2022. The property is acquired at a net property income yield of approximately nine per cent for FY 2022.
“The property is strategically located in the south end of Colorado Springs and benefits from a consistent demand base. The RevPAR for the Colorado Springs market has shown resilience during the COVID-19 pandemic and exceeded 2019 levels by 5.6 per cent for the year 2022.”
ARA US Hospitality Trust comprises the ARA US Hospitality Property Trust (“ARA H-REIT”) and ARA US Hospitality Management Trust (“ARA H-BT”). The trust has executed in excess of $1.75 billion in hotel development and acquisition investments and is focussed on hospitality assets in the United States.
Chartwell Hospitality LLC is a fully integrated hotel operating and development company with a portfolio of 26 hotels in operation and under construction.
