Summit Hotel Properties Closes Acquisition of Hyatt Portfolio
Underwriters fully exercised option in recent offering of common stock
Summit Hotel Properties, Inc. (NYSE: INN) (the ?Company?) today announced the closing of its acquisition of eight hotels containing an aggregate of 1,043 guestrooms (the ?Hyatt Portfolio?) from certain affiliates of Hyatt Hotels Corporation (Hyatt?) for a purchase price of $87.4 million.
|Hyatt Place-Arlington||Dallas (Arlington), TX||127|
|Hyatt Place-Park Meadows||Denver (Lone Tree), CO||127|
|Hyatt Place-Denver Tech Center||Denver (Englewood), CO||126|
|Hyatt House-Denver Tech Center||Denver (Englewood), CO||135|
|Hyatt Place-Owings Mills||Baltimore (Owings Mills), MD||123|
|Hyatt Place-Lombard||Chicago (Lombard), IL||151|
|Hyatt Place-Phoenix||Phoenix, AZ||127|
|Hyatt Place-Scottsdale||Scottsdale, AZ||127|
The Company has entered into an agreement with Select Hotels Group, L.L.C., an affiliate of Hyatt, to operate each hotel.
For the twelve-month period ended June 30, 2012, on a weighted-average basis, the hotels in the Hyatt Portfolio had occupancy of 74.0%, an average daily rate (?ADR?) of $96.42 and revenue per available room (?RevPAR?) of $71.35.
?Our ability to execute accretive acquisitions effectively and efficiently is paramount to bringing value to our investors,? said Dan Hansen, President and CEO of the Company.
Underwriter option exercised in full
As previously disclosed, the underwriters of the Company?s recent offering of common stock fully exercised their option to purchase an additional 1,800,000 shares. The offering, which closed October 3, 2012, was upsized by 20 percent to 12,000,000 shares, and the total number of shares sold, including the option shares, was 13,800,000. A portion of the net proceeds from the offering were used to fund the purchase price of the Hyatt Portfolio acquisition.
?We are very pleased with the execution of our first follow-on common stock offering,? said Mr. Hansen. ?We continue to see terrific opportunities, and, with our expanded capacity, we are in a strong position to continue our growth.?