Summit Hotel Properties Announces Pricing of Public Offering of Common Stock

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Summit Hotel Properties Announces Pricing of Public Offering of Common Stock

SIOUX FALLS, S.D.--(BUSINESS WIRE)-- Summit Hotel Properties, Inc. (NYS: INN) (the "Company") today announced the pricing of its public offering of 12,000,000 shares of its common stock, par value $0.01 per share, an increase of 20% over the previously announced offering size of 10,000,000 shares, at a price of $8.15 per share, for total net proceeds of approximately $93.0 million, after deducting the underwriting discount and other estimated offering expenses payable by the Company.

The underwriters have a 30-day option to purchase up to an additional 1,800,000 shares of common stock. Subject to customary closing conditions, the offering is expected to close on or about October 3, 2012.


The Company will contribute the net proceeds of the offering to its operating partnership, which will use the net proceeds to fund, in part, the cash portions of the purchase prices for the eight-hotel portfolio of unencumbered Hyatt hotels (1,043 rooms), the 98-room Hilton Garden Inn in Fort Worth, Texas and the 178-room Residence Inn in Salt Lake City, Utah, all of which the Company has under contract to purchase. Prior to consummating these acquisitions, the Company intends to use a portion of the net proceeds to reduce the outstanding balance under its 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. KeyBanc Capital Markets is acting as co-lead manager for the offering. MLV & Co is acting as co-manager 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 prospectus supplement, forming part of the effective shelf registration statement.

A copy of the prospectus supplement and base prospectus relating to the offering may 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 27, 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. For example, the fact that this offering has priced may imply that this offering will close, but the closing is subject to conditions customary in transactions of this type and may be delayed or may not occur at all. In addition, the fact that the underwriters have an option to purchase additional shares may imply that this option will be exercised. However, the underwriters are not under any obligation to exercise this option, or any portion of it, and may not do so. Investors should not place undue reliance upon forward-looking statements.



Summit Hotel Properties, Inc.
Dan Boyum, 605-782-2015
VP of Investor Relations
dboyum@shpreit.com

KEYWORDS:   United States  North America  South Dakota

INDUSTRY KEYWORDS:

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