Land sale bolsters balance sheet
SIOUX FALLS, S.D.--(BUSINESS WIRE)--
Summit Hotel Properties, Inc. (NYSE: INN) (the “company”), a real estate
investment trust (REIT) specializing in the ownership of
premium-branded, select-service hotels in the upscale and upper midscale
segments, today announced the closing of the company’s eleventh hotel
acquisition since its February 2011 initial public offering as well as
the sale of two land parcels in Boise, ID.
Hotel Acquisition
The company acquired an 83-room Hampton Inn & Suites in Nashville
(Smyrna), TN for a purchase price of $8.0 million. In addition to the
purchase price, the company expects to spend approximately $0.5 million
for improvements at the hotel. The company anticipates a post-renovation
estimated NTM capitalization rate based on management’s current estimate
of EBITDA for the twelve-month period ending June 30, 2013 in the range
of 8.5 to 9.5 percent.
“This Hampton Inn & Suites is a textbook acquisition for us,” said Dan
Hansen, company president and CEO. “It hits all the points of our simple
goal of acquiring top brands in top markets at great cap rates. This
hotel also gives us the added advantage of clustering properties as
we’ve demonstrated in many markets across the country. We’re excited
about the Nashville market, and this hotel and the Hilton Garden Inn we
acquired last month in the same market are both great additions to our
portfolio. This consistent execution of our strategy is how we provide
value to our investors. ”
Land Sale
Two parcels of land adjacent to the company’s properties in Boise, ID
have been sold to Boise State University for use as an off-campus Park &
Ride facility. Net proceeds of approximately $1.4 million will be used
to reduce outstanding debt. “This sale reflects our commitment to
cultivating and improving our asset base to maximize total return for
our investors,” said Hansen. “This conservative, disciplined approach
helps us continue on our path of steady, orderly growth of our portfolio
through accretive acquisitions and strategic dispositions of non-core
assets.”
About Summit Hotel Properties
Summit Hotel Properties, Inc. is a self-advised REIT focused on
acquiring and owning premium-branded select-service hotels in the
upscale and upper midscale segments. As of July 10, 2012, the company’s
portfolio consisted of 73 hotels with a total of 7,490 guestrooms
located in 20 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 of Investor Relations
605-782-2015
dboyum@shpreit.com
Source: Summit Hotel Properties, Inc.