logo
  Join        Login             Stock Quote

Summit Hotel Properties (INN) Closes Purchase Of 3 Hotels In Utah, New York, Florida

 January 02, 2013 02:26 PM


(By Balaseshan) Summit Hotel Properties Inc. (NYSE: INN), a real estate investment trust and a hotel investment company, said it has closed purchase of three additional hotels in Utah, New York, and Florida for $71.8 million.

The company acquired 178-room Residence Inn by Marriott in Salt Lake City, Utah for $20.0 million. INN anticipates a post-renovation estimated NTM EBITDA multiple in the range of 10.5x to 11.5x based on management's current estimate of EBITDA.

Summit Hotel expects to spend about $6.5 million for improvements at the Utah hotel. The acquisition of this property was announced September 26, 2012 concurrent with the company's offering of common stock and the purchase closed on December 21.

[Related -Summit Hotel Properties (INN) Closes Two Acquisitions, Sells Three Properties]

The company bought 122-room Hyatt Place in Long Island (Garden City), New York for $31.0 million. It anticipates a post-renovation estimated NTM EBITDA multiple in the range of 11.0x to 12.0x based on management's current estimate of EBITDA. The company expects to spend about $305,000 for improvements at the hotel and the purchase closed on December 27.

Summit Hotel purchased 138-room Hampton Inn & Suites in Tampa, Florida for $20.8 million. The company anticipates a post-renovation estimated NTM EBITDA multiple in the range of 10.5x to 11.5x based on management's current estimate of EBITDA. It expects to spend about $2.0 million for improvements at the hotel and the purchase closed on December 27.

[Related -Summit Hotel Properties (INN) PT Lifted To $10.50 By Deutsche Bank, 'Buy' Maintained]

The company also announced the closing of the sale of the 92-room Courtyard by Marriott hotel in Missoula, Montana on December 11 for a price of $7.65 million.

Improvements at these hotels are anticipated to occur within the next 18 months. These improvements are expected to be funded with available cash or additional borrowings under the company's senior secured revolving credit facility.

The company also announced further consolidation into the executive office in Austin, Texas. Its President and CEO Dan Hansen, Chief Operating Officer Craig Aniszewski, Chief Financial Officer Stuart Becker and Chief Accounting Officer Troy Hester are all located in Austin. The Sioux Falls, South Dakota office remains open with key accounting and administrative personnel.

INN is trading up 2.11% at $9.70 on Wednesday. The stock has been trading between $7.40 and $10.16 for the past 52 weeks.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageChart Says This Retailer's Comeback Isn't Finished

One of the surprises, at least on the surface, of the market's recent swoon was the outperformance of read on...

article imageETF Performance Review: Major Asset Classes | 19 Dec 2014

It’s all about real estate investment trusts (REITs) these days when it comes to bullish performance among read on...

article imageOil and Global Stock Markets Rebounding Sharply

So far so good on our expectation of a 4 to 5% pullback and then a resumption of the bull read on...

article imageGrading the FOMC

Love its members or loathe them, you have to admire the gradual impact the policy-making committee has had read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.