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Summit Hotel Properties To Acquire Ten Hotels, Including A Portfolio Of Eight From Hyatt

Stocks in this article: INN

For the twelve-month period ended June 30, 2012, on a weighted-average basis, the hotels in the Hyatt Portfolio had occupancy of 74.0%, an average daily rate (“ADR”) of $96.42 and revenue per available room (“RevPAR”) of $71.35.

“We continue to see terrific opportunities to grow our portfolio,” said Dan Hansen, President and CEO of the Company. “This acquisition is a result of our great relationship with Hyatt and we look forward to exploring future opportunities and continuing to grow that relationship.”

Additional Two Hotels Under Contract

The Company also announced today that it entered into definitive agreements to acquire two additional hotels. The Company entered into an agreement to purchase a 98-room Hilton Garden Inn in Fort Worth, Texas for a purchase price of $7.2 million and an agreement to purchase a 178-room Residence Inn in Salt Lake City, Utah for a purchase price of $20.0 million. The Company intends to fund the purchase price of the Salt Lake City Residence Inn in part by assuming approximately $14.1 million of existing first mortgage debt having a fixed interest rate of 6.11% per annum and maturing in January 2016.

The Company expects to complete both acquisitions in the fourth quarter of 2012. Both acquisitions are subject to franchisor and, in the case of the Residence Inn, lender approval and satisfaction of customary closing conditions, and the Company can give no assurance that either transaction will be consummated.

The Company expects to spend an aggregate of approximately $8.9 million for improvements at these two hotels within 18 months after closing of the acquisitions, funding the improvements with available cash or additional borrowings under the Company’s senior secured revolving credit facility (the “Credit Facility”).

Disposition of Hotel

In August 2012, the Company sold the 52-room AmericInn Hotel & Suites in Missoula, Montana, which was held for sale as of June 30, 2012, for approximately $1.9 million.

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