Summit Hotel Properties Completes Acquisition of Residence Inn by Marriott Steamboat Springs

Rhea-AI Summary

Summit Hotel Properties (NYSE: INN) has completed the acquisition of the 110-guestroom Residence Inn by Marriott Steamboat Springs for $33 million. The company funded its 51% share of the joint venture acquisition with approximately $17 million in cash. Summit maintains strong liquidity with about $425 million available and over $150 million of current investment capacity for future opportunities. As of the acquisition date, Summit’s portfolio included 73 hotels and 11,398 guestrooms across 23 states.

Positive

• Acquisition of Residence Inn for $33 million enhances portfolio and market presence.
• Joint venture structure provides strategic capital efficiency.
• Strong liquidity position with $425 million available for further investments.

Negative

• None.

AUSTIN, Texas, July 12, 2021 /PRNewswire/ -- Summit Hotel Properties, Inc. (NYSE: INN) (the "Company") today announced that it has completed the previously announced acquisition of the 110-guestroom Residence Inn by Marriott Steamboat Springs for $33.0 million through its joint venture with GIC.  The Company funded its 51% interest in the joint venture acquisition using approximately $17 million of cash on-hand.  Additionally, the Company still has nearly $425 million of total liquidity and over $150 million of current investment capacity permitted under credit facility amendments to pursue future investment opportunities.

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 July 12, 2021, the Company's portfolio consisted of 73 hotels, 61 of which are wholly owned, with a total of 11,398 guestrooms located in 23 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, 2020, 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 is the significance of Summit Hotel Properties' acquisition of Residence Inn by Marriott?

The acquisition for $33 million enhances Summit's portfolio and market reach in the hotel industry.

How much cash did Summit invest in the Residence Inn acquisition?

Summit funded approximately $17 million of its share in the acquisition.

What is Summit Hotel Properties' liquidity after the acquisition?

After the acquisition, Summit maintains approximately $425 million in liquidity.

How many hotels does Summit Hotel Properties own after the acquisition?

Post-acquisition, Summit's portfolio consists of 73 hotels with 11,398 guestrooms.