AUSTIN, Texas, May 31, 2016 /PRNewswire/ -- Summit Hotel
Properties, Inc. (NYSE: INN) ("the Company") announced today that
on May 13, 2016, it completed the
sale of the Holiday Inn Express & Suites located in
Irving (Las Colinas), Texas containing 128 guestrooms for a total
sales price of $10.5 million.
"We are very pleased to have sold this hotel at a price we
believe validates the benefits of premium select-service
hotels. With RevPAR nearly 30 percent below our portfolio's
average, this sale demonstrates our commitment to enhancing
portfolio quality," said President and Chief Executive Officer,
Daniel P. Hansen.
The sales price represents a capitalization rate of 7.7 percent
on the hotel's net operating income, including planned capital
improvements, for the trailing twelve months ended March 31, 2016. The Company estimates the
hotel would have contributed approximately $0.2 million and $0.6
million of EBITDA from the sale date through the second
quarter and full year 2016, respectively. The hotel was not
part of the previously announced disposition of 26 hotels to
affiliates of American Realty Capital Hospitality Trust, Inc.
About Summit Hotel Properties
Summit Hotel Properties, Inc. is a publicly-traded real estate
investment trust focused primarily on owning premium-branded,
select-service hotels in the Upscale segment of the lodging
industry. As of May 31, 2016,
the Company's portfolio consisted of 82 hotels with a total of
10,971 guestrooms located in 23 states.
For additional information, please visit the Company's website,
www.shpreit.com and follow the Company on Twitter at
@SummitHotel_INN.
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 Exchange 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," "likely," "would," or other similar
words or expressions. Forward-looking statements are based on
certain assumptions and can include future expectations, future
plans and strategies, financial and operating projections or other
forward-looking information. Examples of forward-looking statements
include the following: the Company's ability to realize embedded
growth from the deployment of renovation capital; projections of
the Company's revenues and expenses, capital expenditures or other
financial items; descriptions of the Company's plans or objectives
for future operations, acquisitions, dispositions, financings or
services; forecasts of the Company's future financial performance
and potential increases in average daily rate, occupancy, RevPAR,
room supply and demand, FFO and AFFO; the Company's outlook with
respect to pro forma RevPAR, pro forma RevPAR growth, RevPAR,
RevPAR growth, AFFO, AFFO per diluted unit and
renovation capital deployed; and descriptions of assumptions
underlying or relating to any of the foregoing expectations
regarding the timing of their occurrence. 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 ("SEC"). 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.
For information about the Company's business and financial
results, please refer to the "Management's Discussion and Analysis
of Financial Condition and Results of Operations" and "Risk
Factors" sections of the Company's Annual Report on Form 10-K for
the year ended December 31, 2015,
filed with the SEC, and its quarterly and other periodic filings
with the SEC. The Company undertakes no duty to update the
statements in this release to conform the statements to actual
results or changes in the Company's expectations.
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SOURCE Summit Hotel Properties, Inc.