Summit Hotel Properties, Inc. (the “Company”) today announced the closing of its acquisition of three hotels (the “Hyatt Portfolio”) containing an aggregate of 426 guestrooms from certain affiliates of Hyatt Hotels Corporation for a purchase price of $36.1 million.
Hotel Location # of Rooms
Hyatt Place Universal Orlando, FL 151
Hyatt Place Convention Center Orlando, FL 149
Hyatt Place Chicago (Hoffman Estates), IL 126
The Company anticipates a post-renovation estimated NTM EBITDA multiple for the Hyatt Portfolio in the range of 10.5x to 11.5x based on management’s current estimate of EBITDA.
The Company has entered into an agreement with Select Hotels Group, L.L.C., an affiliate of Hyatt, to operate each hotel.
The Company also announced today the closing of the sale of the 62-room AmericInn hotel in Lakewood, CO for a price of $2.6 million.
“We continue to cultivate and improve our portfolio with accretive acquisitions of top brands in top markets,” said Company President and CEO Dan Hansen. “We have also effectively recycled capital through the strategic disposition of select hotels. Successful execution of this strategy is one of the key components of how we create value for our investors.”
About Summit Hotel Properties, Inc.
Summit Hotel Properties, Inc. is a self-advised real estate investment trust focused on acquiring and owning premium-branded select-service hotels in the upscale and upper midscale segments. As of January 23, 2013, the Company’s hotel portfolio consisted of 86 hotels, containing a total of 9,383 guestrooms, located in 21 states.