Summit Hotel Properties, Inc. (NYSE: INN) (the “company”), a real estate investment trust (REIT) specializing in the ownership of premium-branded, select-service hotels in the upscale and upper midscale segments, today announced the closing of the company’s eleventh hotel acquisition since its February 2011 initial public offering as well as the sale of two land parcels in Boise, ID.
The company acquired an 83-room Hampton Inn & Suites in Nashville (Smyrna), TN for a purchase price of $8.0 million. In addition to the purchase price, the company expects to spend approximately $0.5 million for improvements at the hotel. The company anticipates a post-renovation estimated NTM capitalization rate based on management’s current estimate of EBITDA for the twelve-month period ending June 30, 2013 in the range of 8.5 to 9.5 percent.
“This Hampton Inn & Suites is a textbook acquisition for us,” said Dan Hansen, company president and CEO. “It hits all the points of our simple goal of acquiring top brands in top markets at great cap rates. This hotel also gives us the added advantage of clustering properties as we’ve demonstrated in many markets across the country. We’re excited about the Nashville market, and this hotel and the Hilton Garden Inn we acquired last month in the same market are both great additions to our portfolio. This consistent execution of our strategy is how we provide value to our investors. ”Land Sale Two parcels of land adjacent to the company’s properties in Boise, ID have been sold to Boise State University for use as an off-campus Park & Ride facility. Net proceeds of approximately $1.4 million will be used to reduce outstanding debt. “This sale reflects our commitment to cultivating and improving our asset base to maximize total return for our investors,” said Hansen. “This conservative, disciplined approach helps us continue on our path of steady, orderly growth of our portfolio through accretive acquisitions and strategic dispositions of non-core assets.”
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV