Development

Summit Hotel Properties, Inc. to Acquire Two Properties and Sell One Non-Core Property

An agreement to purchase a 150-room Courtyard by Marriott, An agreement to purchase a 96-room Residence Inn by Marriott, an agreement to sell the 52-room AmericInn Hotel & Suites in Missoula, MT

Summit Hotels Summit Hotel Properties, Inc. (NYSE: INN), a real estate investment trust (REIT) specializing in the ownership of premium-branded hotels in the upscale and upper midscale segments, announced the company has entered into agreements on the following properties:


“These transactions are part of the disciplined strategy Summit has followed since our predecessor company was founded twenty years ago”

  • An agreement to purchase a 150-room Courtyard by Marriott in downtown Atlanta, GA for $191,000 per key with an anticipated post-renovation NTM capitalization rate between 8 and 9 percent.
  • An agreement to purchase a 96-room Residence Inn by Marriott in downtown Kansas City, MO for $103,000 per key with an anticipated post-renovation NTM capitalization rate between 9 and 10 percent.
  • The company also announced it has entered into an agreement to sell the 52-room AmericInn Hotel & Suites in Missoula, MT for $2 million.
The completion of the acquisitions is subject to lender approval and satisfactory completion of due diligence and other customary closing conditions. The completion of the disposition is subject to completion of the buyer’s due diligence. The company has also entered into purchase agreements on two additional hotel properties and is just beginning its due diligence process.

“These transactions are part of the disciplined strategy Summit has followed since our predecessor company was founded twenty years ago,” commented Mr. Dan Hansen, the company’s chief executive officer. “We are constantly reviewing our portfolio to make certain that our assets are providing the best opportunities for our investors. If acquired, these two properties would bring our total acquisitions to seven since our IPO just nine months ago. We continue to see attractive opportunities in the market and the recent completion of our preferred offering puts us in a great position to take advantage of those opportunities for our investors.”



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