SIOUX FALLS, S.D.--(BUSINESS WIRE)--
Summit Hotel Properties, Inc. (NYSE: INN) (the “Company”) today
announced the closing of three additional hotel acquisitions:
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178-room Residence Inn by Marriott in Salt Lake City, UT for a
purchase price of $20.0 million. The Company anticipates a
post-renovation estimated NTM EBITDA multiple in the range of 10.5x to
11.5x based on management’s current estimate of EBITDA. The Company
expects to spend approximately $6.5 million for improvements at this
hotel. The acquisition of this property was announced September 26,
2012 concurrent with the Company’s offering of common stock and the
purchase closed on 12/21/2012.
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122-room Hyatt Place in Long Island (Garden City), NY for a purchase
price of $31.0 million. The Company anticipates a post-renovation
estimated NTM EBITDA multiple in the range of 11.0x to 12.0x based on
management’s current estimate of EBITDA. The Company expects to spend
approximately $305,000 for improvements at this hotel. The purchase of
this hotel closed 12/27/2012.
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138-room Hampton Inn & Suites in Tampa, FL for a purchase price of
$20.8 million. The Company anticipates a post-renovation estimated NTM
EBITDA multiple in the range of 10.5x to 11.5x based on management’s
current estimate of EBITDA. The Company expects to spend approximately
$2.0 million for improvements at this hotel. The purchase of this
hotel closed 12/27/2012.
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The Company also announced today the closing on December 11, 2012 of
the sale of the 92-room Courtyard by Marriott hotel in Missoula,
Montana for a price of $7.65 million.
Improvements at these hotels are anticipated to occur within the next 18
months. These improvements are expected to be funded with available cash
or additional borrowings under the Company’s senior secured revolving
credit facility.
The Long Island, NY Hyatt Place and Tampa, FL Hampton Inn & Suites were
acquired from OTO Development, LLC, (“OTO”). OTO is a growing developer
and operator of select service hotels licensed from industry leaders
Hilton, Marriott and Hyatt. The Company has been recognized numerous
times by its franchisor affiliates as an outstanding developer and
operator of select service hospitality product. OTO currently manages 34
hotels in nine states.
“Our pipeline is massive and we continue to find top brands in top
markets at great capitalization rates that are accretive to our
portfolio,” said Dan Hansen, president and CEO of the Company. “Our
portfolio continues to improve through the consistent execution of our
strategy.”
The Company also announced further consolidation into the executive
office in Austin, Texas. Company President and CEO Dan Hansen, Chief
Operating Officer Craig Aniszewski, Chief Financial Officer Stuart
Becker and Chief Accounting Officer Troy Hester are all located in
Austin. The Sioux Falls, South Dakota office remains open with key
accounting and administrative personnel.
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 January 2, 2013, the Company’s hotel
portfolio consisted of 84 hotels, containing a total of 9,019
guestrooms, located in 21 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.
Summit Hotel Properties, Inc.
Dan Boyum, VP- Investor
Relations, 512-538-2304
dboyum@shpreit.com
www.shpreit.com
Source: Summit Hotel Properties, Inc.