Summit Hotel Properties Completes Acquisition of 157-Room Marriott in Boulder, Colorado for $61.4 Million
August 19, 2016 9:57am
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.
Tags: marriott boulder,
summit hotel properties,
stonebridge realty advisors
Summit Hotel Properties, Inc. is a publicly-traded real estate investment trust focused primarily on owning premium-branded, select-service hotels in the Upscale segment of the lodging industry. As of August 18, 2016, the Company's portfolio consisted of 80 hotels with a total of 10,751 guestrooms located in 23 states.
For additional information, please visit the Company's website, www.shpreit.com and follow the Company on Twitter at @SummitHotel_INN.
Contact: Adam Wudel, Vice President - Finance
Forward Looking Statements
This press release contains statements that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "may," "will," "should," "potential," "intend," "expect," "seek," "anticipate," "estimate," "approximately," "believe," "could," "project," "predict," "forecast," "continue," "plan," "likely," "would," or other similar words or expressions. Forward-looking statements are based on certain assumptions and can include future expectations, future plans and strategies, financial and operating projections or other forward-looking information. Examples of forward-looking statements include the following: the Company's ability to realize embedded growth from the deployment of renovation capital; projections of the Company's revenues and expenses, capital expenditures or other financial items; descriptions of the Company's plans or objectives for future operations, acquisitions, dispositions, financings or services; forecasts of the Company's future financial performance and potential increases in average daily rate, occupancy, RevPAR, room supply and demand, FFO and AFFO; the Company's outlook with respect to pro forma RevPAR, pro forma RevPAR growth, RevPAR, RevPAR growth, AFFO, AFFO per diluted unit and renovation capital deployed; and descriptions of assumptions underlying or relating to any of the foregoing expectations regarding the timing of their occurrence. These forward-looking statements are subject to various risks and uncertainties, not all of which are known to the Company and many of which are beyond the Company's control, which could cause actual results to differ materially from such statements. These risks and uncertainties include, but are not limited to, the state of the U.S. economy, supply and demand in the hotel industry and other factors as are described in greater detail in the Company's filings with the Securities and Exchange Commission ("SEC"). Unless legally required, the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise.
For information about the Company's business and financial results, please refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of the Company's Annual Report on Form 10-K for the year ended December 31, 2015, filed with the SEC, and its quarterly and other periodic filings with the SEC. The Company undertakes no duty to update the statements in this release to conform the statements to actual results or changes in the Company's expectations.
Summit Hotel Properties Completes Acquisition of 181-Room Courtyard by Marriott Charlotte City Center for $56.3 Million
Summit Hotel Properties to Acquire Five-Hotel Portfolio from Xenia for $163 Million
Summit Hotel Properties Reports Q1 2017 Net Income of $28.9 Million Compared to $44.3 Million in Q1 2016
Hospitality Investors Trust Acquires Seven Hotels from Summit Hotel Properties for $66.8 Million
Summit Hotel Properties Names Jonathan P. Stanner Executive Vice President and Chief Investment Officer
Summit Hotel Properties Acquires Two Hotels For $60.2 Million
Summit Hotel Properties Reports Q4 2016 Net Income Fell to $3.3 Million, Compared with $80 Million in 2015; Pro Forma RevPAR Increased 1% in Q4
Summit Hotel Properties Reports Second Quarter 2016 Net Income of $17.7 million Compared to $12.1 million in the Year Ago Quarter
Tandy O. Lofland and Mark J. Rome Co-Broker Sale of Las Colinas Holiday Inn Express & Suites
Summit Hotel Properties Completes Sale of Holiday Inn Express & Suites in Irving, Texas for $10.5 Million
Summit Hotel Properties Reports First Quarter 2016 Net Income of $44.3 million Compared to $6.4 million in the Year Ago Quarter
Summit Hotel Properties Reports Fourth Quarter And Full Year 2015 Results; Pro forma RevPAR Grew to $97.13, an Increase of 5.5%
Summit Hotel Properties Sells 6 Hotels for $108.3M, Reinstates Agreement for Sale of 10 Hotels for $89.1M, and Acquires 2 Hotels for $109M
American Realty Capital Hospitality Trust Acquires Six Hotels from Summit Hotel Properties for $108.3 Million
Q3 2015 Financial Reports Round Up: Hyatt, Chesapeake, Ryman & Summit
American Realty Capital Hospitality Trust Acquires 10 Hotels for $150 Million from Summit
Summit Hotel Properties Executive Chairman Kerry W. Boekelheide Steps Down
Summit Hotel Properties Continues Growth, Acquires Two Residence Inn Hotels For $56.8 Million
Summit Hotel Properties Acquires Two Properties for $59 Million
Summit Hotel Properties Acquires Newly Constructed Hampton Inn & Suites in Minneapolis, MN for $39M
Please login or register to post a comment.