This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

IPO Watch: 2011

Summit Hotel Properties

IPO Filing Date: Aug. 9, 2010

Expected IPO Date: Feb. 7, 2011

Amount of Proceeds Sought: $264.5 million

Expected Offering Price: $10.50 to $12.50

Expected Number of Shares to Be Sold: 23 million

Use of Proceeds: To eliminate certain debt covenants, to fund improvements at its hotels and for general corporate and working capital purposes, including potential hotel acquisitions.

Expected Ticker Symbol: INN (INN) (NYSE)

Lead Underwriters: Deutsche Bank Securities, Baird and RBC Capital Markets

Co-Managers: KeyBanc Capital Markets, Morgan Keegan

About the Company: Summit Hotel Properties is a hotel investment company that was recently organized to continue and expand the existing hotel investment business of its predecessor, Summit Hotel Properties, LLC.

The predecessor focused on upscale and midscale hotels. Summit Hotel Properties said it wants to continue its predecessor's business of acquiring, owning, renovating, repositioning and aggressively managing hotel assets throughout the U.S.

The majority of Summit's hotels operate under franchise brands owned by Marriott International (MAR), Hilton Worldwide, InterContinental Hotels Group (IHG) and Hyatt (H) Hotels and Resorts. Since Jan. 1, 2007, Summit has invested about $305 million in acquisitions and upgrades at its hotels.

About $10 million of net proceeds from the initial public offering will be used to make additional improvements to Summit's hotels.

The company posted total revenue of $121.2 million in 2009 compared with $135.1 million in 2008 and $113.9 million in 2007.

Summit Hotel Properties reported net loss of $15.1 million in 2009 compared with net income of $13.1 million in 2008 and $14 million in 2007.

One of the company's key business risks is that it has a significant amount of debt. Furthermore, certain debt covenants that Summit Hotel has agreed upon may reduce the operational flexibility of the company and its subsidiaries, increasing default risks.

IPO Scorecard:

Actual IPO Date: Feb. 9, 2011

Actual Proceeds Raised: $ 254 million

Actual Offering price: $9.75

Actual Number of Shares Sold: 26 million

First Day Closing Price: $9.69

IPO First Day Return: -0.6%
3 of 9

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
ZA $0.46 0.00%
AAPL $95.03 -2.90%
FB $116.73 7.20%
GOOG $691.02 -2.10%
TSLA $247.54 -1.60%


Chart of I:DJI
DOW 17,830.76 -210.79 -1.17%
S&P 500 2,075.81 -19.34 -0.92%
NASDAQ 4,805.2910 -57.85 -1.19%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs