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January 2, 2013

Summit Hotel Properties buys three US hotels

Summit Hotel Properties, a US-based hotel investment company, has acquired Residence Inn by Marriott in Salt Lake City, Utah; Hyatt Place in Long Island (Garden City), New York; and Hampton Inn & Suites in Tampa, Florida.

By admin-demo

Summit Hotel Properties, a US-based hotel investment company, has acquired Residence Inn by Marriott in Salt Lake City, Utah; Hyatt Place in Long Island (Garden City), New York; and Hampton Inn & Suites in Tampa, Florida.

Summit has also completed the sale of the 92-room Courtyard by Marriott hotel in Missoula, Montana, for $7.65m.

The company acquired the 178-room Residence Inn by Marriott for $20m and plans to invest around $6.5m for its renovation.

"Our pipeline is massive and we continue to find top brands in top markets at great capitalisation rates that are accretive to our portfolio."

The acquisition of the hotel was closed on 21 December 2012.

Summit purchased the 122-room Hyatt Place for $31m and intends to spend approximately $305,000 on improvements.

The 138-room Hampton Inn & Suites was acquired for $20.8m and Summit plans to spend around $2m to renovate the hotel.

The Hyatt Place and Hampton Inn & Suites deals were closed on 27 December 2012.

Renovations at these hotels are expected to be completed over the next year and a half.

The company expects to fund these improvements with available cash or additional borrowings under its senior secured revolving credit facility.

The Hyatt Place and Hampton Inn & Suites were acquired from OTO Development, a developer and operator of select service hotels licensed from Hilton, Marriott and Hyatt.

Summit Hotel Properties president and CEO Dan Hansen said: "Our pipeline is massive and we continue to find top brands in top markets at great capitalisation rates that are accretive to our portfolio. Our portfolio continues to improve through the consistent execution of our strategy."

As of January 2013, Summit’s hotel portfolio includes 84 hotels, with a total of 9,019 guestrooms across 21 states in the US.

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