Summit Hotel Properties Competes Purchase of San Francisco Hotel
Summit Hotel Properties (NYSE: INN) (“the Company”) announced today it has closed on the joint venture transaction for the acquisition of a 252-room Holiday Inn Express® property (the “Hotel”) located on Fisherman's Wharf in San Francisco, CA.
The Company has acquired the Hotel from an unaffiliated seller for a purchase price of $60.5 million through a joint venture with an affiliate of IHG (InterContinental Hotels Group). The Hotel joins the 10 IHG-branded hotels in the Company's portfolio, including the Holiday Inn Atlanta-Gwinnett Place and the Staybridge Suites Denver that were previously acquired under our current sourcing agreement. The joint venture gives the Company an approximate 80% ownership interest in the Hotel, which will be operated under a long-term IHG management agreement. The Company currently expects the joint venture to spend an aggregate of approximately $3.0 million for improvements at the Hotel within the next 12 months. The Company anticipates a post-renovation estimated NTM EBITDA multiple for the Hotel in the range of 11.0x to 12.0x based on management's current estimate of EBITDA.
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