AUSTIN, Texas, June 1, 2017 /PRNewswire/ -- Summit Hotel Properties, Inc. (NYSE: INN) (the "Company") announced today that on May 23, 2017, it completed the previously announced acquisition of the 261-guestroom Courtyard by Marriott Fort Lauderdale (the "Hotel"), which includes a 0.8 acre vacant land parcel and 6,200 square feet of high-quality retail space, for a total purchase price of $85.0 million. The Hotel is ideally situated on Fort Lauderdale Beach, and its premier oceanfront location features scenic Atlantic Ocean and Intracoastal Waterway views.
"The acquisition of the Courtyard by Marriott Fort Lauderdale is a continued demonstration of our ability to source and acquire high-quality assets that complement our existing portfolio," said Chairman, President and Chief Executive Officer, Daniel P. Hansen. "We are confident in the value creation opportunities that have been identified by our team and look forward to delivering on such opportunities in the future," commented Mr. Hansen.
The Hotel's guestrooms were recently renovated, and the Company plans to invest $1.6 million over the next year into public space improvements and a patio bar redesign that will enhance the outdoor experience.
The Company estimates a capitalization rate of 7.8 percent based on management's current estimate of the hotel's net operating income during the first year of ownership. Taking into consideration the seasonality of the Fort Lauderdale market, the Company estimates that the hotel will contribute approximately $3.3 million of earnings before interest, taxes, depreciation and amortization ("EBITDA") in 2017. Over the last twelve months, the Hotel had revenue per available room ("RevPAR") of $155, which represents a 36 percent premium over the Company's pro forma RevPAR for the comparable period. The Miami-Fort Lauderdale market represents approximately 4.5 percent of the Company's EBITDA with the addition of this hotel.
The dynamic Fort Lauderdale market benefits from high barriers to entry and a variety of leisure and corporate demand generators. Nearby attractions include Las Olas Boulevard, an array of dining experiences, and premiere shopping and entertainment venues. Some of the area's major corporate employers include AutoNation, Citrix Systems, Mednax and Spirit Airlines. The Hotel is only minutes away from the Hollywood/Ft. Lauderdale International Airport and nearby the Port Everglades Cruise Port, Sawgrass Mills Shopping Outlets, and BB&T Center.
About Summit Hotel Properties
Summit Hotel Properties, Inc. is a publicly-traded real estate investment trust focused on owning premium-branded hotels with efficient operating models primarily in the upscale segment of the lodging industry. As of May 31, 2017, the Company's portfolio consisted of 76 hotels with a total of 10,705 guestrooms located in 22 states.
For additional information, please visit the Company's website, www.shpreit.com and follow the Company on Twitter at @SummitHotel_INN.
Forward Looking Statements
This press release contains statements that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "may," "will," "should," "potential," "intend," "expect," "seek," "anticipate," "estimate," "approximately," "believe," "could," "project," "predict," "forecast," "continue," "plan," "likely," "would," or other similar words or expressions. Forward-looking statements are based on certain assumptions and can include future expectations, future plans and strategies, financial and operating projections or other forward-looking information. Examples of forward-looking statements include the following: the Company's ability to realize embedded growth from the deployment of renovation capital; projections of the Company's revenues and expenses, capital expenditures or other financial items; descriptions of the Company's plans or objectives for future operations, acquisitions, dispositions, financings or services; forecasts of the Company's future financial performance and potential increases in average daily rate, occupancy, RevPAR, room supply and demand, FFO and AFFO; the Company's outlook with respect to pro forma RevPAR, pro forma RevPAR growth, RevPAR, RevPAR growth, AFFO, AFFO per diluted unit and renovation capital deployed; and descriptions of assumptions underlying or relating to any of the foregoing expectations regarding the timing of their occurrence. These forward-looking statements are subject to various risks and uncertainties, not all of which are known to the Company and many of which are beyond the Company's control, which could cause actual results to differ materially from such statements. These risks and uncertainties include, but are not limited to, the state of the U.S. economy, supply and demand in the hotel industry and other factors as are described in greater detail in the Company's filings with the Securities and Exchange Commission ("SEC"). Unless legally required, the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
For information about the Company's business and financial results, please refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of the Company's Annual Report on Form 10-K for the year ended December 31, 2016, filed with the SEC, and its quarterly and other periodic filings with the SEC. The Company undertakes no duty to update the statements in this release to conform the statements to actual results or changes in the Company's expectations.
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SOURCE Summit Hotel Properties, Inc.