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 Third Quarter 2013 Results

Subsequent to the third quarter’s end, the Company closed on two of the four announced acquisitions. On October 1, 2013 and October 8, 2013, the Company closed on the Ventura Hampton Inn & Suites and the San Diego Hampton Inn & Suites, respectively.

The conversion of the 213-guestroom hotel to a Hyatt Place in downtown Minneapolis is nearly complete and expected to close prior to year-end 2013.

Renovation Capital

The Company invested $12.3 million on renovations during the third quarter of 2013 at eleven properties. Projects ranged from lobby and public space improvements to complete guestroom renovations, including furniture, soft goods, and guest bathrooms.

“The capital we have invested in the renovations of our hotels continues to yield exceptional results,” Hansen said. “We see ongoing RevPAR growth premiums from these upgraded hotels and will maintain investment in our portfolio where opportunities are presented.”

Dispositions

During the third quarter of 2013, the Company sold three hotels and a parcel of land that it no longer considers strategic for a total sale price of $8.0 million. In addition, the Company reclassified ten non-strategic hotels to held for sale; with plans to divest these hotels in the next several quarters.

Balance Sheet

  • At September 30, 2013, the Company had total outstanding debt of $400.3 million and $45.5 million of cash and cash equivalents. Maximum borrowing capacity was $150.0 million under the senior secured revolving credit facility. The Company had no outstanding borrowings on its senior secured revolving credit facility, $0.7 million in standby letters of credit, and $149.3 million available to borrow. In addition, the Company had 15 unencumbered hotels.
  • The Company’s weighted average interest rate on its debt outstanding at September 30, 2013 was 5.27 percent.
  • At September 30, 2013, the Company’s total net debt to trailing twelve month pro forma corporate EBITDA was 3.7x.

Subsequent Events

  • On October 1, 2013, the Company acquired the 115-guestroom Hampton Inn & Suites located in Ventura (Camarillo), Calif., for a purchase price of $15.7 million.
  • On October 8, 2013, the Company acquired the 108-guestroom Hampton Inn & Suites located in San Diego (Poway), Calif., for a purchase price of $15.2 million.
  • On October 10, 2013, the Company closed on a $300.0 million senior unsecured credit facility. The unsecured credit facility is comprised of a $225.0 million revolving credit facility and a $75.0 million term loan. The credit facility has an accordion feature which will allow the Company to increase the capacity by $100.0 million in either additional revolver capacity or an additional term loan.
  • Subsequent to quarter end, the Company sold two hotels and one parcel of land for a total sales price of $8.6 million.

Current Portfolio

As of November 5, 2013, the Company owns 92 hotels totaling 11,002 guestrooms in 24 states, with 21 brands. Since its initial public offering in February 2011, the Company has acquired 42 hotel properties, totaling 5,735 guestrooms for a total purchase price of $760.5 million.

4 of 7

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
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,024.06 +183.54 1.03%
S&P 500 2,108.29 +22.78 1.09%
NASDAQ 5,005.3910 +63.9670 1.29%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs