Summit Hotel Properties INN 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.
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