This Day On The Street
Continue to site
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

Summit Hotel Properties Reports Second Quarter 2013 Results

One of the Company’s largest capital projects in the second quarter of 2013 was the full renovation of the SpringHill Suites in Nashville, TN. During the renovation, all guestrooms were updated to include new furniture, beds, lighting, air conditioning units, and wall coverings. The bathrooms were renovated with new fixtures, tile, and paint. As part of the common areas update, the exercise room was relocated and outfitted with all new fitness equipment. With the re-image of the lobby, a new kitchen, business center, and front desk were included to improve the overall guest experience. To complete the full renovation, the entire outside of the building was painted and parking lot was updated. The renovation cost approximately $1.9 million and was complete in May of 2013.

“The capital we have invested in the renovations of our hotels has provided us with exceptional results,” said Mr. Hansen. “We see RevPAR growth premiums from these renovated hotels and will continue to invest in our portfolio where opportunities are presented.”

Balance Sheet

  • At June 30, 2013, the Company had total outstanding debt of $517.5 million and $34.4 million of cash and cash equivalents. Maximum borrowing capacity was $150.0 million under the senior secured revolving credit facility. The Company had $96.6 million outstanding on its senior secured revolving credit facility, $5.2 million in standby letters of credit, and $48.2 million available to borrow. In addition, the Company had 17 unencumbered hotels available.
  • The Company’s weighted average interest rate on its debt outstanding at June 30, 2013 was 4.37%.
  • At June 30, 2013, the Company’s total net debt to trailing twelve month pro forma corporate EBITDA was 4.9x. The Company’s debt to total market capitalization was 37.5%.

Subsequent Events

  • On July 22, 2013, the Company closed on a $38.7 million CMBS loan with KeyBank, N.A. secured by the two recent Louisville, KY acquisitions, the Courtyard by Marriott and the Fairfield Inn & Suites. This loan matures on August 1, 2023 and bears interest at a fixed rate of 4.95%. Proceeds from the loan were applied to the $92 million senior secured interim loan with KeyBank, N.A.
  • On July 26, 2013, the Company received proceeds from a $7.4 million term loan with Metabank secured by the Hyatt Place in Atlanta, GA. This loan matures on August 1, 2018 and bears interest at a fixed rate of 4.25%.
  • On August 1, 2013, the Company closed on a $34.0 million term loan with ING Life Insurance and Annuity. This loan matures on March 1, 2038 and bears interest at a fixed rate of 4.55%. ING has the right to call the loan in full on March 1, 2019, 2024, 2029, and 2034.
  • As of August 5, 2013, the Company had total outstanding debt of $515.3 million. Maximum borrowing capacity was $150.0 million under the senior secured revolving credit facility. The Company had $60.6 million outstanding on its senior secured revolving credit facility, $0.5 million in standby letters of credit, and $88.9 million available to borrow. In addition, the Company had 15 unencumbered hotels available.

Current Portfolio

As of August 6, 2013, the Company owns 95 hotels totaling 11,127 guestrooms in 24 states, with 21 brands. Since its initial public offering in February of 2011, the Company has acquired 40 hotel properties, totaling 5,512 guestrooms for a total purchase price of $729.6 million.

5 of 8

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 18,010.68 -115.44 -0.64%
S&P 500 2,107.39 -13.40 -0.63%
NASDAQ 5,070.0260 -27.95 -0.55%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs