Summit Hotel Properties Acquires Another Hotel
Summit Hotel Properties, Inc. (NYSE: INN) (the “Company”) today announced the closing on October 23, 2012 of its acquisition of the 98-room Hilton Garden Inn in Fort Worth, Texas for a purchase price of $7.2 million. The Company anticipates a post-renovation estimated NTM capitalization rate based on management's current estimate of net operating income for the twelve-month period ending October 31, 2013 in the range of 8.5 to 9.5 percent. The Company expects to spend approximately $2.4 million for improvements at this hotel within the next 18 months, funding the improvements with available cash or additional borrowings under the Company's senior secured revolving credit facility. The acquisition of this property was announced September 26, 2012 concurrent with the Company's offering of common stock.
“This hotel is a great addition to the other eight properties we own in the Dallas-Fort Worth metro area,” said Company President and CEO Dan Hansen. “The strategy of clustering hotels in top markets such as this has proven to be successful for us and plays a key role in creating value for our investors.”
About Summit Hotel Properties
Summit Hotel Properties, Inc. is a self-advised real estate investment trust (REIT) focused on acquiring and owning premium-branded select-service hotels in the upscale and upper midscale segments. As of October 31, 2012, the Company's hotel portfolio consisted of 82 hotels with a total of 8,674 guestrooms located in 21 states. Additional information about Summit 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.
Summit Hotel Properties, Inc.
Dan Boyum, VP – Investor Relations