Summit Hotel Properties, Inc. Launches Public Offering of Common Stock

Before you go, we thought you'd like these...
Before you go close icon

Summit Hotel Properties, Inc. Launches Public Offering of Common Stock

SIOUX FALLS, S.D.--(BUSINESS WIRE)-- Summit Hotel Properties, Inc. (NYS: INN) (the "Company") today announced the commencement of an underwritten public offering of 10,000,000 shares of its common stock, par value $0.01 per share. The Company intends to grant the underwriters of the offering a 30-day option to purchase up to an additional 1,500,000 shares. The shares will be offered pursuant to the Company's effective shelf registration statement on Form S-3 that was previously filed with the Securities and Exchange Commission.

The Company will contribute the net proceeds of the offering to Summit Hotel OP, LP, its operating partnership (the "Operating Partnership"), which will use the net proceeds to fund, in part, the cash portions of the purchase prices for the previously announced hotel acquisitions it has under contract: an eight-hotel portfolio of unencumbered Hyatt hotels (total of 1,043 rooms; located in Arizona, Colorado, Illinois, Maryland and Texas), a 98-room Hilton Garden Inn in Fort Worth, Texas; and a 178-room Residence Inn in Salt Lake City, Utah. Prior to consummating the acquisitions of these hotel properties, the Operating Partnership intends to use a portion of the net proceeds to repay debt outstanding under the Company's senior secured revolving credit facility, which amounts can be re-borrowed to fund the closings of the acquisitions.


Deutsche Bank Securities, Citigroup, Baird and RBC Capital Markets are acting as book-running managers for the offering.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of, or any solicitation of an offer to buy, these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The offering is being made solely by means of the prospectus, including a preliminary prospectus supplement, forming part of the effective shelf registration statement.

Copies of the preliminary prospectus supplement and base prospectus relating to the offering will be filed with the Securities and Exchange Commission and, when available, can be obtained by contacting: Deutsche Bank Securities Inc., Attention: Prospectus Group, 60 Wall Street, New York, NY 10005-2836, or by calling (800) 503-4611, or by e-mail at prospectus.cpdg@db.com; Citigroup Global Markets Inc., Brooklyn Army Terminal, 140 58th Street, 8th Floor, Brooklyn, New York 11220, or by calling (800) 831-9146, or by email at batprospectusdept@citi.com; Robert W. Baird & Co. Incorporated, Attention: Syndicate Department, 777 E. Wisconsin Avenue, Milwaukee, WI 53202, or by calling (800) 792-2413, or by email at syndicate@rwbaird.com; or RBC Capital Markets, LLC, Attention: Equity Syndicate, Three World Financial Center, 200 Vesey Street, 8th floor, New York, New York 10281-8098, or by calling (877) 822-4089.

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 September 26, 2012 the Company's hotel portfolio consisted of 73 hotels with a total of 7,533 guestrooms located in 20 states.

Forward Looking Statements

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 the Company's common stock offering and the anticipated use of the net proceeds.No assurance can be given that the common stock offering discussed above will be completed on the terms described, or at all, or that the net proceeds of the offering will be used as indicated. Completion of the common stock offering on the terms described, and the application of net proceeds, 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.



Summit Hotel Properties, Inc.
Stuart J. Becker, Chief Financial Officer, 605-782-2022
sbecker@shpreit.com

KEYWORDS:   United States  North America  South Dakota

INDUSTRY KEYWORDS:

The article Summit Hotel Properties, Inc. Launches Public Offering of Common Stock originally appeared on Fool.com.

Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Read Full Story

Want more news like this?

Sign up for Finance Report by AOL and get everything from business news to personal finance tips delivered directly to your inbox daily!

Subscribe to our other newsletters

Emails may offer personalized content or ads. Learn more. You may unsubscribe any time.

From Our Partners