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, Inc. Announces Two Potential Hotel Acquisitions

Summit Hotel Properties, Inc. (NYSE:INN) (the “Company”) today announced that it has two hotel properties, containing an aggregate of 421 guestrooms, under contract to acquire.

The Company announced that it has entered into a definitive agreement to acquire the 210-guestroom DoubleTree by Hilton located in San Francisco, Calif. for a purchase price of approximately $39.0 million. The Company expects to implement approximately $4.1 million in capital improvements to the property prior to year-end 2014 and anticipates an estimated forward capitalization rate in the range of 8.5 percent to 9.5 percent based on management’s current estimate of the Hotel’s 2015 stabilized net operating income.

The hotel was built in 2000 and is undergoing an extensive repositioning and rebranding, converting it from a Radisson to a DoubleTree by Hilton. Prior to acquisition, the seller will complete a portion of the conversion and deliver the property with a DoubleTree by Hilton flag. The Company will deploy the additional capital to complete the repositioning prior to year-end 2014.

“We are thrilled to expand our San Francisco presence with the recently repositioned DoubleTree by Hilton,” said Company President and CEO Dan Hansen. “We see strong upside potential in this newly rebranded property, located in a top market with multiple demand generators, including both an abundant base of corporate demand as well as strong leisure and weekend demand driven by the hotel’s close proximity to the San Francisco International Airport and downtown area.”

The Company anticipates assuming approximately $13.1 million in mortgage debt associated with the acquisition of the DoubleTree by Hilton. The loan bears a fixed interest rate of 5.98% and has a maturity date of March 08, 2016.

The Company also announced that it has entered into a definitive agreement with Mortenson Development to acquire a 211-guestroom Hampton Inn & Suites currently under development in Minneapolis, Minn., for a purchase price of approximately $37.7 million. In January of 2014, the Company issued a $13.1 million letter of credit in support of this acquisition under its senior unsecured credit facility. This agreement is subject to certain conditions, including the completion of the hotel in accordance with agreed upon architectural and engineering designs, receipt of a Hampton Inn & Suites franchise and receipt of a certificate of occupancy.

1 of 3

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 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs