Summit Hotel Properties, Inc. (NYSE:INN) (the “Company”) today announced that it has closed on the acquisition of two of the four hotels previously announced as part of the Company’s September 12, 2013 offering of common stock. The Company also announced the disposition of three hotels and the successful execution of the Company’s new $300 million senior unsecured credit facility.
The Company has closed on two of the three previously announced Southern California hotels. The two hotels have a total of 223-guestrooms and are both unencumbered by debt.
The Company acquired the 115-guestroom Hampton Inn & Suites located in Ventura (Camarillo), CA for $15.8 million. The hotel was built in 2004 and the Company anticipates spending approximately $1.3 million in capital improvements over the next 12 months. The Company anticipates a post-renovation estimated NTM capitalization rate in the range of 8.5 percent to 9.25 percent based on management’s current estimate of net operating income.
The Hampton Inn & Suites in Ventura (Camarillo) provides access to several large corporate demand generators including Verizon and Lockheed Martin. In addition, the hotel offers significant leisure demand generators with Southern California’s hottest attractions within easy driving distance: Universal Studios, Disneyland®, Hollywood, Beverly Hills, the scenic Pacific Coast Highway and Malibu's pristine beaches.
The Company also acquired the 108-guestroom Hampton Inn & Suites located in San Diego (Poway), CA for $15.2 million. The hotel was built in 2008 and the Company anticipates spending approximately $0.3 million on capital improvements over the next 12 months. The Company anticipates a post-renovation estimated NTM capitalization rate in the range of 8.5 percent to 9.25 percent based on management’s current estimate of net operating income.
The Hampton Inn & Suites in San Diego (Poway) provides both strong weekday business demand and weekend leisure demand. The Poway Business Park has grown consistently since its inception in 2007 and continued expansion is expected. Located just minutes north of San Diego, the hotel also provides strong leisure demand from attractions such as the USS Midway Museum, SeaWorld®, Petco® Park, Qualcomm® Stadium, San Diego Zoo and LEGOLAND® California.