AUSTIN, Texas, Aug. 18, 2016 /PRNewswire/ -- Summit Hotel
Properties, Inc. (NYSE: INN) (the "Company") announced today that
on August 9, 2016, it completed the
previously announced acquisition of the 157-guestroom Marriott® in
Boulder, CO (the "Hotel") for a
gross purchase price of $61.4 million
and entered into a management agreement with Stonebridge Realty
Advisors, Inc.
"We are excited about the opportunity to add another
high-quality hotel to our portfolio," said President and Chief
Executive Officer, Daniel P.
Hansen. "The asset has a number of unique attributes,
including its compact size of 157 guestrooms and healthy hotel
EBITDA margin of nearly 41.0 percent, that make it a great
complement to our diverse portfolio of premium select-service
hotels," commented Mr. Hansen.
The gross purchase price represents a capitalization rate of 8.2
percent on management's current estimate of the Hotel's 2017 net
operating income, which includes tenant income from approximately
20,000 square feet of retail and restaurant space. On
August 2, 2016, the Company had
included the pending acquisition of the Hotel in it's updated 2016
outlook. Over the last twelve months, the Hotel had revenue
per available room ("RevPAR") of $167, which represents a 51 percent premium over
the Company's pro forma RevPAR for the portfolio.
The dynamic Boulder market
exhibits high barriers to entry and a variety of corporate,
leisure, and education-related demand generators. Some of the
area's major corporate employers include IBM, Google, NCAR,
Qualcomm and Covidien. The Hotel is also within walking
distance of the University of Colorado,
Folsom Field and Pearl Street Mall,
which is known for its diverse collection of galleries, shops and
restaurants. In addition, the Boulder market has a multitude of outdoor
activities and is centrally located between Denver and the Rocky Mountains.
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 August 18,
2016, the Company's portfolio consisted of 80 hotels with a
total of 10,751 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.