Summit Hotel Properties, Inc. Closes Acquisition of Hyatt Portfolio
AUSTIN, Texas -- January 23, 2013
Summit Hotel Properties, Inc. (NYSE: INN) (the “Company”) today announced the
closing of its acquisition of three hotels (the “Hyatt Portfolio”) containing
an aggregate of 426 guestrooms from certain affiliates of Hyatt Hotels
Corporation for a purchase price of $36.1 million.
Hotel Location Rooms
Hyatt Place-Universal Orlando, FL 151
Hyatt Place-Convention Center Orlando, FL 149
Hyatt Place Chicago (Hoffman Estates), IL 126
The Company anticipates a post-renovation estimated NTM EBITDA multiple for
the Hyatt Portfolio in the range of 10.5x to 11.5x based on management’s
current estimate of EBITDA.
The Company has entered into an agreement with Select Hotels Group, L.L.C., an
affiliate of Hyatt, to operate each hotel.
The Company also announced today the closing of the sale of the 62-room
AmericInn hotel in Lakewood, CO for a price of $2.6 million.
“We continue to cultivate and improve our portfolio with accretive
acquisitions of top brands in top markets,” said Company President and CEO Dan
Hansen. “We have also effectively recycled capital through the strategic
disposition of select hotels. Successful execution of this strategy is one of
the key components of how we create value for our investors.”
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 23, 2013, the Company’s
hotel portfolio consisted of 86 hotels, containing a total of 9,383
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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