Summit Hotel Properties has revealed a new collaboration with Onera Escapes, commencing with the acquisition of a 90 percent joint venture stake in Onera Fredericksburg, a distinguished glamping asset nestled in Texas wine country.
The partnership secures a 90 percent interest in an adjoining land parcel earmarked for future expansion.
This venture marks a milestone as the inaugural standalone glamping investment from a public REIT in the burgeoning segment. Forecasts indicate a robust 14 percent revenue Compound Annual Growth Rate (CAGR) from 2022 to 2030, underlining the significance of this move in advancing the alternative accommodation market to institutional status.
This transaction signifies Summit’s maiden foray with Onera Escapes, renowned for their development and operation of hotels, glamping/landscape hotels, and short-term rental hospitality properties. Their joint aim is to cultivate and acquire premium glamping/landscape hotel assets in strategic locations nationwide.
Jon Cole, CEO of Onera Escapes and its management entity, Azri Group, highlighted, “Our labor-light, highly efficient operating model, supported by our sophisticated technology-driven operating platform, is designed to optimize both real estate owner and guest satisfaction.”
He emphasized the partnership’s role in formalizing alternative hospitality, such as glamping, as an institutional asset class, thereby broadening access for a diverse range of investors, developers, and property owners.
Opened in November 2021, Onera Fredericksburg offers temperature-controlled units, each boasting a private bathroom and kitchen facilities. Many units feature private patios and hot tubs, while all guests have access to communal amenities including a pool, sun deck, fire pits, and a sauna.
Situated within walking distance of Fredericksburg’s historic main street and nestled in the heart of the Texas Hill Country wine region, the hotel is conveniently located just 90 minutes west of Austin.
Financial specifics of the transaction were not disclosed.
