This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Summit Hotel Properties Reports Second Quarter 2013 Results

Stocks in this article: INN

“The conversion of the Hyatt Place in downtown Minneapolis is progressing as planned. We anticipate an opening in fourth quarter of 2013 with positive effect on earnings in 2014 and beyond,” said Mr. Hansen. “We believe the downtown Minneapolis market is under-served by premium select-service offerings and thus expect great results from this hotel.”

Dispositions

During the second quarter of 2013, the Company continued its strategy of recycling capital by selling hotels that it no longer considers strategic.

  • On May 1, 2013, the Company sold the Holiday Inn Express (63-guestrooms) and the Holiday Inn (119-guestrooms) in Boise, ID for $3.0 million and $9.6 million, respectively.
  • On May 30, 2013, the Company sold the Courtyard by Marriott (96-guestrooms) in Memphis, TN for $4.2 million.

Capital Markets

During the second quarter of 2013, the Company closed on $102.1 million in debt financing including the following transactions.

  • On May 21, 2013, the Company acquired a Hilton Garden Inn in Minneapolis (Eden Prairie), MN for a total purchase price of $10.2 million, including $6.4 million in assumed mortgage debt with Wells Fargo, N.A. The loan bears interest at a fixed rate of 5.57% and has a January 1, 2016 maturity date.
  • On May 21, 2013, the Company acquired a Holiday Inn Express & Suites in Minneapolis (Minnetonka), MN for a total purchase price of $6.9 million, including $3.7 million in assumed mortgage debt with Wells Fargo, N.A. The loan bears interest at a fixed rate of 5.53% and has an October 1, 2015 maturity date.
  • On May 23, 2013, the Company closed on a $92.0 million senior secured interim loan with KeyBank National Association, as administrative agent and lender, and Regions Bank, as lender. The “Interim Loan” is associated with four recent acquisitions: the Fairfield Inn & Suites in Louisville, KY, the Courtyard by Marriott in Louisville, KY, the SpringHill Suites in Indianapolis, IN, and the Courtyard by Marriott in Indianapolis, IN. This loan bears interest at a variable rate of 1-, 2-, 3, or 6- month LIBOR plus 225 basis points or the base rate plus 125 basis points and matures on November 23, 2013 with an option for a six month extension.

Capital Investment

The Company invested $8.8 million during the second quarter of 2013 on renovations at ten properties. Projects ranged from lobby and public space improvements to complete guestroom renovations, including all furniture, soft goods, and guest bathrooms.

4 of 8

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,719.00 +33.27 0.19%
S&P 500 2,052.75 +4.03 0.20%
NASDAQ 4,701.8670 +26.1550 0.56%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs