AUSTIN, Texas, Aug. 19, 2016 — 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.
