AUSTIN, Texas--(BUSINESS WIRE)--
Summit Hotel Properties (NYSE: INN) (“the Company”) announced today it
has closed on the joint venture transaction for the acquisition of a
252-room Holiday Inn Express® property (the “Hotel”) located on
Fisherman’s Wharf in San Francisco, CA.
The Company has acquired the Hotel from an unaffiliated seller for a
purchase price of $60.5 million through a joint venture with an
affiliate of IHG (InterContinental
Hotels Group). The Hotel joins the 10 IHG-branded hotels in the
Company’s portfolio, including the Holiday Inn Atlanta-Gwinnett Place
and the Staybridge Suites Denver that were previously acquired under our
current sourcing agreement. The joint venture gives the Company an
approximate 80% ownership interest in the Hotel, which will be operated
under a long-term IHG management agreement. The Company currently
expects the joint venture to spend an aggregate of approximately $3.0
million for improvements at the Hotel within the next 12 months. The
Company anticipates a post-renovation estimated NTM EBITDA multiple for
the Hotel in the range of 11.0x to 12.0x based on management’s current
estimate of EBITDA.
“We are excited about the opportunity to enter the San Francisco
market,” said Dan Hansen, president and CEO of the Company. “We are also
very pleased that our relationship with IHG has provided us with the
opportunity to source quality acquisitions like this and we expect to
continue our growth with them.”
The Hotel is perfectly positioned in the heart of the wharf district in
the midst of the bustling waterfront area. Leisure guests can spend a
sunny day at Pier 39, take a tour of Alcatraz or grab a ride on one of
San Francisco’s iconic trolleys. Fisherman's Wharf also offers souvenir
shopping and world-class seafood. Business travelers will enjoy the
proximity to the corporate offices of Levi Strauss, Williams-Sonoma,
Diversity Alliance and others in nearby downtown San Francisco. The
Hotel's location is also near the Financial District, Art Institute and
Academy of Art University. And, all guests are able to enjoy the
complimentary Express Start® breakfast bar option before beginning their
day.
“The strategic relationship with Summit Hotel Properties continues to
drive value for our business in strong US market such as San Francisco.
We are pleased to see the completion of this transaction and start of a
new long-term management agreement for our successful Holiday Inn
Express brand,” said Kirk Kinsell, president, Americas, IHG. “This joint
venture purchase with Summit is yet another example of us delivering
consistently on our asset strategy, as well as working with high quality
ownership groups who have confidence in our brands and management
expertise.”
Features of the Hotel are in line with the $1 billion Holiday Inn® brand
family’s global brand relaunch, which was the largest project of its
kind ever in the hospitality industry. The relaunch program has created
a more contemporary brand image, including redesigned logo and signage,
as part of the drive to increase the portfolio’s quality and consistency
around the world. Business and leisure guests to a Holiday Inn Express
hotel will enjoy signature details in areas that were a key focus of the
relaunch including: arrival and welcome services, guestroom and guest
bath comfort.
About Summit Hotel Properties, Inc.:
Summit Hotel
Properties, Inc. is a self-advised real estate investment trust focused
on acquiring and owning premium-branded select-service hotels in the
upscale and upper midscale segments. As of February 13, 2013, the
Company’s hotel portfolio consisted of 87 hotels, containing a total of
9,635 guestrooms, located in 22 states.
Forward-Looking Statements
This press release contains
statements that are “forward-looking statements” within the meaning of
the Private Securities Litigation Reform Act of 1995 and other federal
securities laws.These forward-looking statements are based upon
the Company’s expectations, but these statements are not guaranteed to
occur.Investors should not place undue reliance upon
forward-looking statements.These statements relate to, among
other things, the Company’s pending acquisitions, the availability of
funding for the pending acquisitions and the expected increase in the
maximum borrowing availability under the Credit Facility.No
assurance can be given that the acquisitions will be completed when
expected, on the terms described or at all, or that maximum borrowing
availability under the Credit Facility will be increased. These actions
are subject to numerous conditions, many of which are beyond the control
of the Company, including, without limitation, general economic
conditions, market conditions and other factors, including those set
forth in the Risk Factors section of the Company’s periodic reports and
other documents filed with the Securities and Exchange Commission (the
“SEC”).Copies are available on the SEC’s website, www.sec.gov.
The Company undertakes no obligation to update these statements after
the date of this release.
About Holiday Inn Express®
Holiday Inn Express hotels are
modern hotels for value-oriented travelers. Fresh, clean and
uncomplicated, Holiday Inn Express hotels offer competitive rates for
both business and leisure travelers. Guests Stay Smart® at
Holiday Inn Express hotels where they enjoy a free hot Express Start®
Breakfast Bar, free high-speed internet access and free local phone
calls (US and Canada only). There are currently more than 2,000 Holiday
Inn Express hotel locations around the globe. For more information about
Holiday Inn Express hotels or to book reservations, call 1-800-HOLIDAY
or visit www.hiexpress.com.
About IHG
IHG® (InterContinental Hotels Group) [LON:IHG,
NYSE:IHG (ADRs)] is a global organization with nine hotel brands
including InterContinental® Hotels & Resorts, Hotel Indigo®, Crowne
Plaza® Hotels & Resorts, Holiday Inn® Hotels & Resorts, Holiday Inn
Express®, Staybridge Suites®, Candlewood Suites®, as well as our two
newest brands, EVEN™ Hotels and HUALUXE™ Hotels and Resorts. IHG also
manages Priority Club® Rewards, the world’s first and largest hotel
loyalty program with over 69 million members worldwide.
IHG franchises, leases, manages or owns over 4,500 hotels and more than
672,000 guest rooms in nearly 100 countries and territories. With more
than 1,000 hotels in its development pipeline, IHG expects to recruit
around 90,000 people into additional roles across its estate over the
next few years.
InterContinental Hotels Group PLC is the Group’s holding company and is
incorporated in Great Britain and registered in England and Wales.
Visit www.ihg.com for
hotel information and reservations and www.priorityclub.com
for more on Priority Club Rewards. For our latest news, visit www.ihg.com/media,www.twitter.com/ihg, www.facebook.com/ihg or www.youtube.com/ihgplc.
Summit Hotel Properties, Inc.
Dan Boyum, 512-538-2304
VP
of Investor Relations
www.shpreit.com
Source: Summit Hotel Properties, Inc.