| SIOUX FALLS, S.D. - June 27, 2005 -- Summit Hotel Properties, LLC,
an affiliate of The Summit Group, Inc., today announced it has purchased
four leading-brand, limited-service hotels. These transactions are part
of the overall growth strategy of The Summit Group, a leading developer,
owner, and manager of upscale limited-service hotels nationwide.
Under these agreements, Summit has purchased 316 rooms for approximately
$18 million -- or $57,000 per room -- bringing the total number of properties
in The Summit Group's portfolio to 60 hotels across 21 states. The Company
also plans to spend $2.5 million in soft-goods renovation expenses and
other capital improvements, bringing the projected total investment to
approximately $65,000 per room.
"We are gaining true momentum as we continue to execute our growth strategy,
which is based on the strategic acquisition of leading-brand hotel properties
in the upscale, limited-service arena," said Kerry W. Boekelheide, chief
executive officer and chairman of The Summit Group, Inc. "These newest
properties build upon our presence in existing markets, while we continue
to identify new markets that will help us expand geographically."
Summit's new properties include:
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Fairfield Inn by Marriott - 80-room hotel in Germantown, TN that will be
converted to a Fairfield Inn & Suites
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Residence Inn by Marriott - 78-room hotel in Germantown, TN.
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Both the Fairfield Inn and the Residence Inn will go through a soft goods
renovation this fall. Both are located in the upscale Memphis suburb of
Germantown, TN, and were purchased from Master Hospitality Services, Inc.
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Towneplace Suites by Marriott - 95-room hotel in St. Louis suburb Fenton,
MO, also will be renovated this fall. Summit purchased this hotel from
Dominion Hospitality
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Holiday Inn Express - 63-room hotel in Boise, ID, for a total of three
Summit-owned properties in this market. The seller was Sonomar of Boise
The Company also expects to break ground soon on a 116-room Cambria Suites
by Choice Hotels International, which is currently slated to be open in
the summer of 2006. The hotel will be built on a site near the airport
in Boise adjacent to the Company's Hampton Inn and Fairfield Inn.
About Summit Hotel Properties, LLC
Summit Hotel Properties, LLC was formed in March 2004 through the consolidation
of 31 separate entities managed by The Summit Group, Inc.
About The Summit Group, Inc.
The Summit Group, Inc. is a developer, owner and manager of upscale
limited-service hotels nationwide. The Company owns and operates all the
hotels in its portfolio of 60 properties in 21 states. The Summit Group's
growing portfolio includes leading hotel brands such as Marriott International,
Inc. (Courtyard, Residence Inn, Springhill Suites, Fairfield Inn and TownePlace
Suites), Hilton Hotels Corporation (Homewood Suites, Hampton Inn, Hampton
Inn & Suites), InterContinental Hotels Group (Holiday Inn Express),
and Choice Hotels International (Comfort Suites, Comfort Inn). Approximately
50 percent of The Summit Group's portfolio hotels are Marriott properties.
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