Summit Hotel Properties, Inc. (NYSE: INN) (the “Company”), a real estate investment trust (REIT) specializing in the ownership of premium-branded hotels in the upscale and upper midscale segments, today announced that the Company has closed on two acquisition transactions. On February 9, 2012 the company announced it had entered into a contract to purchase the 130-room Birmingham (Liberty Park), AL Hilton Garden Inn. That transaction was closed today.
In addition, the company has also closed on a second acquisition in Birmingham (Lakeshore), AL; a 95-room Hilton Garden Inn. Details of both transactions are listed below:
- The previously announced 130-room Hilton Garden Inn, Birmingham (Liberty Park), AL for a purchase price of $11.9 million including planned property improvements and a post-renovation, NTM capitalization rate in the range of 8.5 to 9.5 percent.
- The 95-room Hilton Garden Inn, Birmingham (Lakeshore), AL for a purchase price of $10.2 million including planned property improvements and a post-renovation, NTM capitalization rate in the range of 9.5 to 10.5 percent.
“These two properties hit all points of our strategy; a top 50 market, a top brand, and multiple demand generators with enhanced efficiency through clustering,” said Mr. Dan Hansen, the company’s president and chief executive officer. “Top brands in top markets at great cap rates; that’s what we do.”
About Summit Hotel PropertiesSummit Hotel Properties, Inc. is a self-advised real estate investment trust focused on acquiring and owning premium-branded select-service hotels in the upscale and upper midscale segments. As of February 28, 2012, the company’s hotel portfolio consisted of 73 hotels with a total of 7,469 guestrooms located in 20 states. Additional information about Summit may be found at the company’s website, www.shpreit.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 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” or other similar words or expressions. These forward-looking statements relate to the payment of dividends. 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, 2010. 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.