Summit Hotel Properties Buys Marriott-Branded Portfolio of Five Hotels for ~$135M
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.
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