Summit Hotel Properties, Inc. Acquires Three Hotels; 24 Hotels Acquired
Since February 2011 IPO
SIOUX FALLS, S.D. -- January 2, 2013
Summit Hotel Properties, Inc. (NYSE: INN) (the “Company”) today announced the
closing of three additional hotel acquisitions:
*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.
*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
*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
*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
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.
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
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