Summit Hotel Properties Closes Six Hotel Acquisitions
AUSTIN, Texas--(BUSINESS WIRE)-- Summit Hotel Properties, Inc. (NYS: INN) (the "Company") today announced that it has closed on the previously announced acquisitions of four hotels containing an aggregate of 786 guestrooms from affiliates of White Lodging Services Corporation for a total purchase price of approximately $153.0 million. Properties in this portfolio include: the 135-guestroom Fairfield Inn & Suites by Marriott and the 198-guestroom SpringHill Suites by Marriott in Louisville, KY; the 156-guestroom SpringHill Suites by Marriott and the 297-guestroom Courtyard by Marriott in Indianapolis, IN. The Company funded the acquisitions through a combination of bridge financing and borrowings under its senior secured revolving credit facility. The Company currently expects minimal renovation requirements for these hotels and anticipates an estimated NTM EBITDA multiple in the range of 11.5x to 12.5x based on management's current estimate of EBITDA.
The Company also announced today that it has closed on the previously announced acquisitions of two Minneapolis hotels; the 93-guestroom Holiday Inn Express & Suites and the 97-guestroom Hilton Garden Inn for a total purchase price of approximately $17.1 million. The Company funded the acquisitions with loan assumptions of $3.7 million and $6.4 million, respectively, and borrowings under its senior secured revolving credit facility. The Company currently expects to spend an aggregate of approximately $3.6 million in improvements over the next twelve months and anticipates a post-renovation estimated NTM EBITDA multiple for the hotels in the range of 10.5x to 11.5x based on management's current estimate of EBITDA.
"These six hotels are very well positioned amid multiple demand generators in their respective markets," said Dan Hansen, President and Chief Executive Officer. "We are excited about the opportunity to extend our nationwide reach into the Indianapolis and Louisville markets as well as grow our presence in Minneapolis. These acquisitions squarely hit the marks of our simple strategy; top brands in top markets."
About Summit Hotel Properties
Summit Hotel Properties, Inc. is a publicly traded real estate investment trust focused primarily on acquiring and owning premium-branded select-service hotels in the upscale and upper midscale segments of the lodging industry. As of May 30, 2013, the Company's portfolio consisted of 96 hotels with a total of 11,223 guestrooms located in 24 states.
Additional information 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 and financial and operating projections 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, 2012. 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 of Investor Relations, 512-538-2304
KEYWORDS: United States North America Texas
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