Dealmaker: Summit Hotel Properties Acquires New Orleans Hotel for $56M
Summit Hotel Properties, Austin, Texas, acquired the 176-guestroom Canopy by Hilton New Orleans Downtown for $56 million in a joint venture with Singapore sovereign wealth fund GIC.
Photo credit: Aimbridge Hospitality
The 14-story hotel at 1100 Tulane Avenue in New Orleans is near the city’s French Quarter. As a nod to its location in what used to be New Orleans’ Chinatown district, the hotel’s restaurant, Ginger Roux, serves Creole- and Cantonese-inspired meals.
The Canopy by Hilton New Orleans Downtown is a historic renovation of the former Oil and Gas Building built in 1959. The National Register of Historic Places added the building in 2014 for its distinctive use of glass, steel and abstract geometry.
NewcrestImage, Dallas, and Baywood Hotels, Columbia, Md., re-developed the hotel and sold it to Summit as the last asset in a 27-hotel transaction containing 3,709 guestrooms. The deal totaled $776.5 million, or $209,000 per key.
Summit secured $410 million from Bank of America and Wells Fargo Bank to fund the transaction. The four-year interest-only loan included a one-year extension option and floats at an interest rate equal to SOFR plus 2.86 percent. Summit reported having more than $425 million of total liquidity after the transaction.
Aimbridge Hospitality, Plano, Texas, will manage the 176-room property.
