- 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.
“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.”
About Summit Hotel Properties
Summit Hotel Properties, Inc. is a self-advised real estate investment trust focused on acquiring and owning premium-branded select-service hotels in the upscale and upper midscale segments. As of November 10, 2011, the company’s hotel portfolio consisted of 70 hotels with a total of 7,099 guestrooms located in 19 states. Additional information about Summit may be found at the company’s website, www.shpreit.com .
Forward Looking Statement
Certain matters within this press release are discussed using forward-looking language as specified in the Private Securities Litigation Reform Act of 1995, and, as such, may involve known and unknown risks, uncertainties and other factors that may cause the actual results or performance to differ from those projected in the forward-looking statement. These forward-looking statements include statements related to the company’s ability to continue to execute its strategy by selectively expanding the portfolio while continuing to maximize the operating results of its existing portfolio. For a description of factors that may cause the company’s actual results or performance to differ from its forward-looking statements, please review the information under the heading “Risk Factors” included in the company’s Annual Report on Form 10-K for the year ended December 31, 2010, as filed with the Securities and Exchange Commission.