AUSTIN, Texas, Aug. 18, 2016 /PRNewswire/ -- Summit Hotel Properties, Inc. (NYSE: INN) (the "Company") announced today that on August 9, 2016, it completed the previously announced acquisition of the 157-guestroom Marriott® in Boulder, CO (the "Hotel") for a gross purchase price of $61.4 million and entered into a management agreement with Stonebridge Realty Advisors, Inc.
"We are excited about the opportunity to add another high-quality hotel to our portfolio," said President and Chief Executive Officer, Daniel P. Hansen. "The asset has a number of unique attributes, including its compact size of 157 guestrooms and healthy hotel EBITDA margin of nearly 41.0 percent, that make it a great complement to our diverse portfolio of premium select-service hotels," commented Mr. Hansen.
The gross purchase price represents a capitalization rate of 8.2 percent on management's current estimate of the Hotel's 2017 net operating income, which includes tenant income from approximately 20,000 square feet of retail and restaurant space. On August 2, 2016, the Company had included the pending acquisition of the Hotel in it's updated 2016 outlook. Over the last twelve months, the Hotel had revenue per available room ("RevPAR") of $167, which represents a 51 percent premium over the Company's pro forma RevPAR for the portfolio.
The dynamic Boulder market exhibits high barriers to entry and a variety of corporate, leisure, and education-related demand generators. Some of the area's major corporate employers include IBM, Google, NCAR, Qualcomm and Covidien. The Hotel is also within walking distance of the University of Colorado, Folsom Field and Pearl Street Mall, which is known for its diverse collection of galleries, shops and restaurants. In addition, the Boulder market has a multitude of outdoor activities and is centrally located between Denver and the Rocky Mountains.
About Summit Hotel Properties
Summit Hotel Properties, Inc. is a publicly-traded real estate investment trust focused primarily on owning premium-branded, select-service hotels in the Upscale segment of the lodging industry. As of August 18, 2016, the Company's portfolio consisted of 80 hotels with a total of 10,751 guestrooms located in 23 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, 2015, 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.
SOURCE Summit Hotel Properties, Inc.