AUSTIN, Texas, June 5, 2017 /PRNewswire/ -- Summit Hotel
Properties, Inc. (NYSE: INN) ("Summit") and Xenia Hotels & Resorts, Inc. (NYSE: XHR) ("Xenia") today announced that the
companies have executed a definitive agreement for an affiliate of Summit to acquire an 812-guestroom, five-hotel portfolio from
Xenia for a total purchase price of $163 million, or approximately $201,000 per key. The portfolio includes the 203-guestroom Courtyard Fort Worth Downtown/Blackstone, the
123-guestroom Courtyard Kansas City Country Club Plaza, the 182-guestroom Courtyard Pittsburgh Downtown, the 116-guestroom
Hampton Inn & Suites Baltimore Inner Harbor, and the 188-guestroom Residence Inn Baltimore Downtown/Inner Harbor. The
total purchase price represents an 11.1x multiple on the hotels' combined trailing twelve month EBITDA as of April 2017.
The portfolio achieved RevPAR of $115.52 during the same period.
"The completion of this transaction will represent the continued execution of our strategy of acquiring premium-branded
upscale hotels with efficient operating models while maintaining a geographically diversified portfolio," said Chairman,
President and Chief Executive Officer of Summit, Daniel P. Hansen. "All five of these hotels
are located in prime locations in strong markets and exhibit many of the upside characteristics that are important to our
investment criteria. We are pleased to work on this deal with the team at Xenia and look forward to completing the
transaction," commented Mr. Hansen.
In conjunction with the acquisitions, Summit will be executing new franchise agreements with the respective franchisors for
the hotels and expects to spend approximately $13 to $16 million in capital improvements required
under these agreements over the next two years.
"We are pleased to have entered into this agreement with Summit, as we strongly believe this to be a mutually beneficial
strategic transaction," said Marcel Verbaas, President and Chief Executive Officer of Xenia.
"While these hotels fit well within Summit's portfolio of quality, upscale hotels, the completion of this transaction and our
recent acquisition of the Hyatt Regency Grand Cypress represent a further refinement of our portfolio, consistent with our
strategic focus on primarily owning luxury and upper upscale assets in top 25 lodging markets and key leisure destinations."
The closing of the transaction is subject to the satisfaction of certain customary closing conditions and is expected to occur
within the next 30 days.
About Summit Hotel Properties
Summit Hotel Properties, Inc. is a publicly-traded real estate investment trust focused on owning premium-branded hotels with
efficient operating models primarily in the upscale segment of the lodging industry. As of May 31,
2017, the Company's portfolio consisted of 76 hotels with a total of 10,705 guestrooms located in 22 states. For
additional information, please visit the Company's website, www.shpreit.com and follow the Company on Twitter at @SummitHotel_INN.
About Xenia Hotels & Resorts, Inc.
Xenia Hotels & Resorts, Inc. is a self-advised and self-administered REIT that invests primarily in premium full service,
lifestyle and urban upscale hotels, with a focus on the top 25 U.S. lodging markets as well as key leisure destinations in
the United States. The Company owns 42 hotels, including 40 wholly owned hotels, comprising
11,595 rooms, across 20 states and the District of Columbia. Xenia's hotels are operated and/or
licensed by industry leaders such as Marriott®, Hyatt®, Kimpton®, Aston®, Fairmont®, Hilton®, and Loews®, as well as leading
independent management companies including Sage Hospitality, The Kessler Collection, Urgo Hotels & Resorts, Davidson Hotels
& Resorts and Concord Hospitality. For more information on Xenia's business, refer to the Company website at www.xeniareit.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 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, 2016, 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.
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/summit-hotel-properties-and-xenia-hotels--resorts-announce-agreement-on-163-million-transaction-300468382.html
SOURCE Summit Hotel Properties, Inc.