AUSTIN, Texas--(BUSINESS WIRE)--
Summit Hotel Properties (NYSE:INN) (“the Company”) announced today the
acquisition of the Hilton Garden Inn located in the Energy Corridor of
Houston, Tex. and the disposition of the Hampton Inn located in Fort
Smith, Ark. The acquisition marks the second Hilton Garden Inn owned by
Summit in the Houston area.
The Company acquired the 190-guestroom Hilton Garden Inn located in
Houston, Tex. on August 15, 2014 for a total purchase price of $36.0
million and entered into a management agreement with American Liberty
Hospitality, Inc. The property was built in 2008 and the Company
anticipates spending approximately $3.2 million in capital improvements
over the next twelve months. The Company anticipates an estimated
post-renovation next twelve month (“NTM”) capitalization rate in the
range of 8.00 percent to 8.50 percent based on management’s current
estimate of future net operating income. The Company expects the hotel
to generate approximately $1.1 million of adjusted earnings before
interest, taxes, depreciation and amortization (“EBITDA”) in 2014.
“We are very pleased with the acquisition of our second property in the
Houston market. This high yielding asset in a market with multiple
demand generators makes it a perfect addition to our portfolio. We see
great opportunity for our asset management team to create additional
value through operational improvements and believe this asset will
create tremendous near-term and long-term shareholder value,” said
Company President and CEO Dan Hansen.
The Hilton Garden Inn is located in the heart of the Houston Energy
Corridor, which is home to many of the world’s largest energy companies
including BP America, Citgo Petroleum, ConocoPhillips, ExxonMobil and
Shell Oil Company. With nearly 19 million square feet of existing office
space and an estimated 10.7 million of additional square feet to be
added by 2030, the Energy Corridor will be a central focus for Houston’s
economic growth for years to come.
The Company also announced the completed disposition of the
178-guestroom Hampton Inn located in Fort Smith, Ark. on September 9,
2014 for a total sales price of $8.8 million. This was the final
property classified as held for sale by the Company and completes the
Company’s exit from the Fort Smith market. The Company estimates the
property would have contributed approximately $0.2 million of EBITDA
during the balance of 2014.
About Summit Hotel Properties
Summit Hotel Properties, Inc. is a publicly-traded real estate
investment trust focused primarily on acquiring and owning
premium-branded, select-service hotels in the upscale and upper midscale
segments of the lodging industry. As of September 10, 2014, the
Company’s portfolio consisted of 90 hotels with a total of 11,380
guestrooms located in 21 states.
For additional information, please visit the Company’s website, www.shpreit.com
and follow the Company on Twitter at @SummitHotel_INN.
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 Exchange 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,” “likely,” “would”
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 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 (“SEC”), including, without
limitation, the Company’s Annual Report on Form 10-K for the year ended
December 31, 2013. 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.
Elisabeth Eisleben,
512-538-2306
Director of Investor Relations
eeisleben@shpreit.com
Source: Summit Hotel Properties, Inc.