DENVER, Feb. 25, 2014 /PRNewswire-iReach/ -- Sage Hospitality, one of the leading hotel investment and management companies in the U.S., announced the purchase of 11 hotels in partnership with Whitman Peterson. This purchase marks the second of a programmatic, highly-focused investment venture between Sage and Whitman Peterson, wherein they plan to acquire a sizable portfolio of select-service hotels in need of high-impact capital, operational, and/or brand improvements.
The first portfolio, purchased in March of 2013, encompassed seven well-branded, but under-capitalized hotels and is in the final stages of renovation. This new transaction adds 11 hotels to the venture – bringing Sage's total hotels under management to 76 nationally. The newly added properties are located in several metropolitan areas strategic to the venture, including Austin, Denver, Indianapolis, and Dallas.
"The properties are geographically diverse and encompass a variety of top tier brands in the Marriott, Hilton, and Hyatt systems," said Michael Everett, Chief Investment Officer for Sage Hospitality. "We see significant upside from capital expenditure and operational improvements, which is perfectly inline with our investment strategy." Everett continued, "With an acquisition price of approximately $70,000/key and an approximately 10 percent cap rate on trailing 12 income – we believe this portfolio offers a unique combination of in-place yield and attractive upside, at a basis after renovation that is well below replacement cost."
"We are thrilled to continue to execute on our joint strategy with Sage," said Wes Whitman, of Whitman Peterson. "We and Sage look forward to working with brokers, owners and the brands to identify similar individual properties and portfolios to acquire."
About Sage Hospitality:
Founded in 1984 and celebrating 30 years, Sage Hospitality has strategically grown into one of the largest privately held hotel management, investment and development companies in the nation operating a variety of large, full-service hotels and extended stay and select-service properties. Sage Hospitality's comprehensive management portfolio includes major international brands for Marriott, Starwood, Hilton and IHG as well as the independent boutique hotels. Sage Hospitality has further differentiated with the creation of the Sage Restaurant Group, which has created and is managing over nine unique restaurant concepts including the acclaimed Mercat a la Planxa restaurant in Chicago. For more information, please visit www.sagehospitality.com.
Media Contact: Kate Davis, Sage Hospitality, 303-595-7259, firstname.lastname@example.org
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SOURCE Sage Hospitality