SUMMIT HOTEL PROPERTIES COMPLETES ACQUISITION OF CANOPY BY HILTON NEW ORLEANS DOWNTOWN

Rhea-AI Summary

Summit Hotel Properties has completed its acquisition of the Canopy by Hilton New Orleans Downtown for $56.0 million through a joint venture with GIC. This acquisition is part of a larger portfolio deal worth $822 million, which includes 27 hotels and 3,709 guestrooms. After this transaction, the company holds over $425 million in total liquidity. As of March 28, 2022, Summit's portfolio consists of 101 hotels with a total of 15,227 guestrooms across 24 states.

Positive

• Acquisition of Canopy by Hilton enhances portfolio with a premium hotel.
• Part of a larger $822 million acquisition, increasing total assets.
• Total liquidity exceeds $425 million, providing financial flexibility.

Negative

• None.

AUSTIN, Texas, March 29, 2022 /PRNewswire/ -- Summit Hotel Properties, Inc. (NYSE: INN) (the "Company") today announced that it has completed the previously announced acquisition of the 176-guestroom Canopy by Hilton New Orleans Downtown for $56.0 million through its joint venture with GIC.  The closing of this transaction completes the $822 million portfolio acquisition from NewcrestImage which included 27 hotels containing 3,709 guestrooms, two parking structures, and various financial incentives.  Additionally, the Company has over $425 million of total liquidity after completion of the transaction.

About Summit Hotel Properties

Summit Hotel Properties, Inc. is a publicly traded real estate investment trust focused on owning premium-branded hotels with efficient operating models primarily in the Upscale segment of the lodging industry.  As of March  28, 2022, the Company's portfolio consisted of 101 hotels, 61 of which are wholly owned, with a total of 15,227 guestrooms located in 24 states.

For additional information, please visit the Company's website, www.shpreit.com, and follow on Twitter at @SummitHotel_INN.

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 financial and operational synergies; projections of revenues and expenses or other financial items; descriptions of the Company's plans or objectives for future operations; forecasts of EBITDAre; 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, 2021, 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.

 

 

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SOURCE Summit Hotel Properties, Inc.

FAQ

What was the total cost of the Canopy by Hilton acquisition by Summit Hotel Properties?

The acquisition cost for the Canopy by Hilton New Orleans Downtown was $56.0 million.

How many hotels were included in Summit's $822 million acquisition?

The $822 million acquisition included 27 hotels.

What is the total number of guestrooms in Summit's portfolio after the acquisition?

After the acquisition, Summit's portfolio contains a total of 15,227 guestrooms.

How much liquidity does Summit Hotel Properties have following the acquisition?

Following the acquisition, Summit Hotel Properties has over $425 million in total liquidity.