US: Summit Hotel Properties has announced its acquisition of the Residence Inn by Marriott Steamboat Springs.
Summit announced the $33 million acquisition via its joint venture with GIC, of the property, which opened in December 2020.
The transaction is predicted to be completed in late Q2 or early Q3 and is subject to customary closing conditions. Summit plans to fund its 51 per cent interest in the joint venture with $17 million of cash on-hand. After this transaction, Summit plans on having over $425 million in total liquidity and more than $150 million of current investment capacity permitted under recent credit facility amendments to pursue opportunities in the future.
The property, which has 110 guest rooms, is expected to receive high winter and summer demand, as well as special corporate and project business in the off seasons. It is in close proximity to the base of Mount Werner, Gondola Square, numerous trails, Downtown Steamboat Springs, and other attractions.
The Residence Inn by Marriott Steamboat Springs is the newest addition to Steamboat Springs and the first Marriott extended stay property in the area. The market has a high barrier to entry, as only six hotels have opened in the last 20 years, and none are currently in development. The Residence Inn has been able to achieve a RevPAR premium of more than 30 per cent compared to its competitors in the first six months since its opening.
Steamboat Springs, the location of the Residence Inn, is currently undergoing expansion. Already one of the top five busiest ski resorts in the United States as a part of the Ikon Pass Ski Program, Steamboat expects to continue to grow, with the local airport, Yampa Valley Regional Airport, seeing a 20 per cent increase in incoming passengers.
Steamboat has been owned and operated by Alterra Mountain Company since 2017, which has plans to significantly increase summer demand, increase airlift, and build the mountain base. Alterra is currently in phase one of a $135 million improvement plan that is set to be complete by the winter of 2022/2023. This project will increase the skiable land by about 20 per cent.
