- The Enterprise
- The Recorder
Supertel Hospitality Inc. announced this week that it has entered into an agreement to acquire the Hilton Garden Inn in Solomons for a purchase price of $11.5 million.
Patrick Welton, director of hotel operations for Cherry Cove Hospitality Management LLC, which will continue to manage and operate the 100-room hotel, said there should be no notable changes to the hotel as a result of the acquisition.
“Really it’s only a change in the equity share of the ownership, the employees will remain Cherry Cove employees,” Welton said. “It’s really just on paper. The quality of service that guests have come to enjoy and expect will continue as it has in years past.”
The Hilton Garden Inn opened on Dowell Road in July 2007 and includes 3,650 square feet of function space and a restaurant, according to a Supertel press release. The hotel is now the real estate investment trust company’s second property in Solomons, as it also owns the 60-room Comfort Inn Beacon Marina. Supertel owns 98 hotels in 23 states and expects to close the acquisition of the Hilton Garden Inn during the second quarter of 2012.
“This Hilton Garden Inn is a stabilized first generation, premium select-service hotel, and is an especially meaningful purchase for Supertel as it represents the beginning of the next phase of our plan to move the company methodically up the chain scale spectrum,” Kelly Walters, Supertel’s president and CEO, said in the release. “This particular upscale property has been superbly managed and maintained by [Cherry Cove] since it opened and we plan to retain the managers who made it a success. This is our second hotel in this area and we know this market to be one that possesses a diverse group of consistent demand generators augmented by one of the strongest median household incomes in the country.”
Supertel expects to fund the purchase with capital from its recent preferred equity raise coupled with a conservative amount of fixed rate financing for five to 10 years, the release continues.
The company focuses primarily on the limited-service hotel segment, according to the release, and its hotel portfolio includes Baymont Inn, Comfort Inn/Comfort Suites, Days Inn, Guest House Inn, Hampton Inn, Holiday Inn Express, Key West Inns, Masters Inn, Quality Inn, Ramada Limited, Savannah Suites, Sleep Inn, Super 8 and Supertel Inn. For more information, go to www.supertelinc.com.