ARA US Hospitality Trust, a Singapore-based select-service hospitality trust, has completed the acquisition of the Home2 Suites by Hilton property located in Colorado, US, from CH Tenderfoot Hill.
The deal was valued at $29m and its completion comes after the parties signed a sale and purchase agreement for the hotel in January this year.
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Located at the foothills of the Rocky Mountains in Colorado Springs, Colorado, the property offers 119 rooms and is being currently managed by Chartwell Hospitality.
ARA Trust Management CEO 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 9.0% 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% for the year 2022.”
The hotel is branded under the global hospitality company Hilton Worldwide, whose portfolio includes 18 brands comprising more than 7,000 properties in 123 countries.
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By GlobalDataThe property started operations in 2019 and includes a business centre, a meeting space, an indoor pool and an integrated fitness and laundry centre.
Chartwell Hospitality executive vice-president Will Schaedle said: “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.”
Founded in 2003, Chartwell Hospitality is focused on the acquisition, development and management of branded hotels.
The company manages 27 Marriott and Hilton-branded hotels across nine states in the US.
