Summit Hotel Properties, Inc. (NYSE: INN) today announced results of operations for its fourth quarter and year ended December 31, 2011. The company is a publicly traded real estate investment trust (REIT) specializing in acquiring and owning premium-branded upscale and upper-midscale hotels and as of December 31, 2011 owned 70 properties in 19 states.
FOURTH QUARTER HIGHLIGHTS
- Revenue per Available Room (RevPAR): 3.6 percent increase for the same-store portfolio (54 hotels) in the fourth quarter of 2011 over the same period in 2010. The same-store portfolio excludes five hotels acquired since the February 2011 IPO and the 11 hotels that had their franchise licenses terminated in the first quarter of 2011. Same-store RevPAR increased 6.2 percent over the same period in 2010, exclusive of five hotels under major renovation during the fourth quarter. RevPAR for the company’s 15 unseasoned hotels (excluding four hotels that had their franchise licenses terminated in the first quarter of 2011) 1 increased by 9.8 percent over the same period in 2010.
- Pro Forma Hotel Operating Margins: On a total portfolio basis, hotel operating margins increased 326 basis point over the same period in 2010 on a pro forma basis.
- Adjusted Funds from Operations (AFFO): Achieved $0.11 of AFFO per fully diluted share of common stock.
- Dividends: Declared fourth quarter 2011 dividends of $0.1125 per common share, representing an annualized yield of approximately 4.50 % based on the closing sale price of the company’s common stock on the NYSE on February 27, 2012, and $0.2056 per share of the company’s 9.25% Series A Cumulative Redeemable Preferred Stock (Series A Preferred Stock).
- Brand Conversions: Completed the conversion of the former Cambria Suites hotel in Baton Rouge, LA to a DoubleTree by Hilton and the former Comfort Suites hotel in Charleston, WV to a Holiday Inn Express. To date, the company has completed the conversion of 10 of the 11 hotels that had their franchise licenses terminated in the first quarter of 2011. The final conversion of the Comfort Suites in Fort Worth, TX to a Fairfield Inn & Suites by Marriott is expected to be completed in the second quarter of 2012.
1 At the time of its IPO, the company designated certain hotels as “unseasoned” if they had been built after January 1, 2007 or experienced a brand conversion since January 1, 2008.
FULL YEAR 2011 HIGHLIGHTS
- RevPAR: 5.9 percent increase for the same-store portfolio in 2011 compared to 2010. Same-store RevPAR for 2011 increased 6.9 percent over the same period, exclusive of five hotels under major renovation during the fourth quarter. RevPAR for the company’s 15 unseasoned hotels increased by 14.1 percent over the same period in 2010.
- Pro Forma Hotel Operating Margins: On a total portfolio basis, hotel operating margins increased 160 basis points over the same period in 2010 on a pro forma basis.
- AFFO: Achieved $0.71 of AFFO per fully diluted share of common stock.
- Capital Markets: The company closed on a $253 million IPO transaction on February 14, 2011. Concurrent with the IPO, the company entered into a private placement of its common stock with an affiliate of InterContinental Hotels Group for additional proceeds of approximately $11.6 million. On October 28, 2011, the company raised $50.0 million through the offering of its Series A Preferred Stock.
- Acquisitions: The company acquired five hotels during 2011 for a total investment of approximately $50.0 million. The properties acquired were: a 91 room Homewood Suites in Ridgeland, MS; a 121 room Staybridge Suites in Glendale, CO; a 143 room Holiday Inn in Duluth, GA; a 122 room Hilton Garden Inn in Duluth, GA, and a 90 room Courtyard by Marriott in El Paso, TX.
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