Summit Hotel Properties Adding to Their Presence in Louisiana with the Acquisition of a Marriott-branded Portfolio of Five

  Summit Hotel Properties Adding to Their Presence in Louisiana with the
  Acquisition of a Marriott-branded Portfolio of Five Hotels

Business Wire

AUSTIN, Texas -- January 28, 2013

Summit Hotel Properties, Inc. (NYSE: INN) (the “Company”) today announced that
it has entered into a definitive agreement to acquire a portfolio of five
Louisiana hotels (the “Louisiana portfolio”) containing an aggregate of 823
rooms for a purchase price of approximately $135.0 million. The Company
expects to implement approximately $5.0 million in property improvements to
the Louisiana portfolio over the next twelve months. The Company anticipates a
post-renovation estimated NTM EBITDA multiple for the Louisiana portfolio in
the range of 10.5x to 11.5x based on management’s current estimate of EBITDA.

The Company expects to complete the acquisition in the first quarter of 2013.
The acquisition is subject to satisfactory completion of the Company’s due
diligence and satisfaction of customary closing conditions, and the Company
can give no assurance that the acquisition will be consummated. The Company
intends to enter into agreements with affiliates of Marriott to operate each
hotel.

“This portfolio of hotels is uniquely positioned to allow us access to the
many diverse markets and sub-markets in the area,” said Company President and
CEO Dan Hansen. “They are each great properties on their own and we would be
happy to own any one of them. We are very excited to have the opportunity to
acquire all five of them.”

Metairie
The Company plans to acquire the 153-room Courtyard by Marriott and the
120-room Residence Inn by Marriott, both located in Metairie, LA. Metairie is
the first suburb of New Orleans and is the halfway point between downtown New
Orleans, home of the world-famous French Quarter, Superdome, Aquarium, Zoo,
and Convention Center; and Kenner, where the New Orleans International
Airport, Rivertown, and the Pontchartrain Center are located. Metairie is an
important business hub for the New Orleans area, and home to major businesses
including Ochsner Hospital, US Department of Defense, ATF, and DEA, as well as
Entergy, Jacobs Engineering, Tetra Tech, Skanska, URS, Westinghouse, Verizon,
PF Changs, and AT&T.

New Orleans Convention Center
The Company plans to acquire the 202-room Courtyard by Marriott and the
208-room SpringHill Suites by Marriott, both located just two blocks from the
freshly renovated New Orleans Ernest N. Morial Convention Center. A jam-packed
convention calendar in 2012, including large citywide events such as the BCS
Championship Game and NCAA Men’s Final Four helped boost demand. The city is
also enjoying the continued demand recovery following the 2005 landfall of
Hurricane Katrina. The New Orleans Convention and Visitors Bureau has a
healthy pipeline of large conventions to help fill the expanding Convention
Center which is nearing the completion of its $50 million “Great Hall”
expansion, designed to attract small to mid-size corporate events.

French Quarter
The Company plans to acquire the 140-room Courtyard by Marriott in downtown
New Orleans. This hotel’s premier location on St. Charles Avenue is within
short walking distance to the French Quarter as well as many financial and
corporate offices. Some of the key corporate offices include GE, Whitney
Hancock, Xavier University, LSU Medical, Miller/Coors, AT&T, Verizon, Glazers,
Moet/Hennesey, as well as the US Department of Justice and Homeland Security.

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 January 28, 2013, the Company’s portfolio consisted of 86 hotels with a
total of 9,383 rooms located in 21 states.

Additional information may be found at the Company’s website, www.shpreit.com.

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 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” 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, including projections based
on management’s current estimate of EBITDA for newly acquired hotels, 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, including, without limitation, the company’s Annual Report on Form
10-K for the year ended December 31, 2011. 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.

Contact:

Summit Hotel Properties, Inc.
Dan Boyum, VP of Investor Relations, 512-538-2304
www.shpreit.com
 
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