Summit Hotel Properties, Inc. Closes on Eleventh Hotel Acquisition
SIOUX FALLS, S.D.—Summit Hotel Properties, Inc. (the “company”), a real estate investment trust (REIT) specializing in the ownership of premium-branded, select-service hotels in the upscale and upper midscale segments, today announced the closing of the company’s eleventh hotel acquisition since its February 2011 initial public offering. READER COMMENTS
The company acquired an 83-room Hampton Inn & Suites in Nashville (Smyrna), Tenn. for a purchase price of $8.0 million. In addition to the purchase price, the company expects to spend approximately $0.5 million for improvements at the hotel. The company anticipates a post-renovation estimated NTM capitalization rate based on management’s current estimate of EBITDA for the twelve-month period ending June 30, 2013 in the range of 8.5 to 9.5 percent.
“This Hampton Inn & Suites is a textbook acquisition for us,” said Dan Hansen, company president and CEO, in an announcement. “It hits all the points of our simple goal of acquiring top brands in top markets at great cap rates. This hotel also gives us the added advantage of clustering properties as we’ve demonstrated in many markets across the country. We’re excited about the Nashville market, and this hotel and the Hilton Garden Inn we acquired last month in the same market are both great additions to our portfolio. This consistent execution of our strategy is how we provide value to our investors. ”