Summit Hotel Properties has raised $254m in its initial public offering, issuing 26 million shares.

The US-based hotel group also plans a private placement of $12.5m in stock to UK-based InterContinental Hotels Group.

The company will use the proceeds to repay its existing debt, fund capital improvements at its hotels and for general corporate and working capital purposes.

Summit Hotel operates 65 hotels in 19 US states, including Marriott, Hilton and IHG brands.