21 hotels acquired since February 2011 IPO
SIOUX FALLS, S.D.--(BUSINESS WIRE)--
Summit Hotel Properties, Inc. (NYSE: INN) (the “Company”) today
announced the closing on October 23, 2012 of its acquisition of the
98-room Hilton Garden Inn in Fort Worth, Texas for a purchase price of
$7.2 million. The Company anticipates a post-renovation estimated NTM
capitalization rate based on management’s current estimate of net
operating income for the twelve-month period ending October 31, 2013 in
the range of 8.5 to 9.5 percent. The Company expects to spend
approximately $2.4 million for improvements at this hotel within the
next 18 months, funding the improvements with available cash or
additional borrowings under the Company’s senior secured revolving
credit facility. The acquisition of this property was announced
September 26, 2012 concurrent with the Company’s offering of common
stock.
“This hotel is a great addition to the other eight properties we own in
the Dallas-Fort Worth metro area,” said Company President and CEO Dan
Hansen. “The strategy of clustering hotels in top markets such as this
has proven to be successful for us and plays a key role in creating
value for our investors.”
About Summit Hotel Properties
Summit Hotel Properties, Inc. is a self-advised real estate investment
trust (REIT) focused on acquiring and owning premium-branded
select-service hotels in the upscale and upper midscale segments. As of
October 31, 2012, the Company’s hotel portfolio consisted of 82 hotels
with a total of 8,674 guestrooms located in 21 states. Additional
information about Summit may be found at the Company’s website, www.shpreit.com.
Forward looking Statements
This press release contains statements that are “forward-looking
statements” within the meaning of Section 27A of the Securities Act of
1933, as amended, and Section 21E of the Securities Act of 1934, as
amended, pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995.Forward-looking
statements are generally identifiable by use of forward-looking
terminology such as “may,” “will,” “should,” “potential,” “intend,”
“expect,” “seek,” “anticipate,” “estimate,” “approximately,” “believe,”
“could,” “project,” “predict,” “forecast,” “continue,” “plan” or other
similar words or expressions.Forward-looking statements are
based on certain assumptions and can include future expectations, future
plans and strategies, financial and operating projections, including
projections based on management’s current estimate of EBITDA for newly
acquired hotels, or other forward-looking information. These
forward-looking statements are subject to various risks and
uncertainties, not all of which are known to the company and many of
which are beyond the company’s control, which could cause actual results
to differ materially from such statements. These risks and uncertainties
include, but are not limited to, the state of the U.S. economy, supply
and demand in the hotel industry and other factors as are described in
greater detail in the company’s filings with the Securities and Exchange
Commission, including, without limitation, the company’s Annual Report
on Form 10-K for the year ended December 31, 2011. Unless legally
required, the company disclaims any obligation to update any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Summit Hotel Properties, Inc.
Dan Boyum, VP – Investor Relations
605-782-2015
dboyum@shpreit.com
Source: Summit Hotel Properties, Inc.