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.
Hyatt Place-Convention Center
Chicago (Hoffman Estates), IL
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.