Summit Hotel Properties, Inc. (NYSE: INN) (the “Company”) today announced the commencement of an underwritten public offering of 10,000,000 shares of its common stock, par value $0.01 per share. The Company intends to grant the underwriters of the offering a 30-day option to purchase up to an additional 1,500,000 shares. The shares will be offered pursuant to the Company’s effective shelf registration statement on Form S-3 that was previously filed with the Securities and Exchange Commission.
The Company will contribute the net proceeds of the offering to Summit Hotel OP, LP, its operating partnership (the “Operating Partnership”), which will use the net proceeds to fund, in part, the cash portions of the purchase prices for the previously announced hotel acquisitions it has under contract: an eight-hotel portfolio of unencumbered Hyatt hotels (total of 1,043 rooms; located in Arizona, Colorado, Illinois, Maryland and Texas), a 98-room Hilton Garden Inn in Fort Worth, Texas; and a 178-room Residence Inn in Salt Lake City, Utah. Prior to consummating the acquisitions of these hotel properties, the Operating Partnership intends to use a portion of the net proceeds to repay debt outstanding under the Company’s senior secured revolving credit facility, which amounts can be re-borrowed to fund the closings of the acquisitions.
Deutsche Bank Securities, Citigroup, Baird and RBC Capital Markets are acting as book-running managers for the offering.
This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of, or any solicitation of an offer to buy, these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The offering is being made solely by means of the prospectus, including a preliminary prospectus supplement, forming part of the effective shelf registration statement.