Summit Hotel Properties (NYSE:INN) (“the Company”) announced today the
acquisition of the Hampton Inn & Suites located in downtown Austin,
Texas. The acquisition is the first property owned by Summit in the home
of their corporate offices.
The Company acquired the 209-guestroom Hampton Inn & Suites located in
Austin, Texas on September 9, 2014 for a total purchase price of $53.0
million and entered into a management agreement with Interstate Hotels &
Resorts. The property was built in 2002 and the Company anticipates
spending approximately $2.4 million in capital improvements over the
next twelve months. The Company estimates a post-renovation next twelve
month (“NTM”) capitalization rate in the range of 8.00 percent to 8.50
percent based on management’s current projection of future net operating
income. The Company expects the hotel to generate approximately $1.4
million of adjusted earnings before interest, taxes, depreciation and
amortization (“EBITDA”) through the balance of 2014.
“We are thrilled with the acquisition of our first property in the
robust and dynamic Austin market,” said Company President and CEO Dan
Hansen. “The Hampton Inn & Suites is a wonderful addition to our
portfolio in one of the fastest growing cities in the country.”
The 16-story Hampton Inn & Suites is located in downtown Austin, Texas,
one block from the Austin Convention Center and Lady Bird Lake, in the
central business district. Austin has seen continued increases in demand
from large corporate accounts, convention business and strong leisure
demand. The capitol city is home to the headquarters or regional offices
of many Fortune 500 companies, including Apple Inc., eBay, Google, IBM,
Texas Instruments, Whole Foods and Dell. Live music, sports and
entertainment events in the city known as the Live Music Capital of the
World®, include Austin City Limits Music Festival (“ACL”), South by
Southwest (“SXSW”), Formula 1 and the University of Texas Longhorn
football.
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 September 15, 2014, the
Company’s portfolio consisted of 91 hotels with a total of 11,589
guestrooms located in 21 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. 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”), including, without
limitation, the Company’s Annual Report on Form 10-K for the year ended
December 31, 2013. 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.
Copyright Business Wire 2014