AUSTIN, Texas--(BUSINESS WIRE)--Summit Hotel Properties, Inc. (NYSE: INN) (the “Company”) today announced that it closed on the previously announced acquisition of the Hampton Inn & Suites located in Minneapolis, Minnesota.
The Company acquired the 211-guestroom Hampton Inn & Suites on April 13, 2015 for a total purchase price of $39.0 million and entered into a management agreement with Interstate Hotels & Resorts. The Company anticipates an estimated forward capitalization rate in the range of 7.0 percent to 8.0 percent based on management’s current estimate of the hotel’s 2016 net operating income.
“We are extremely pleased with the recent completion of the Hampton Inn & Suites located in the heart of downtown Minneapolis,” said Daniel P. Hansen, President and Chief Executive Officer. “This property is a wonderful addition to our nationwide portfolio of premium select-service hotels. The newly built Hampton Inn & Suites is in a prime urban location with direct access to the Minneapolis Skyway System and walking distance to the Block E Entertainment District, Target Field, Target Center, Minneapolis Convention Center and the new Minnesota Vikings stadium, currently under construction.”
About Summit Hotel Properties
Summit Hotel Properties, Inc. is a publicly-traded real estate investment trust focused primarily on acquiring and owning premium-branded, select-service hotels in the upscale and upper midscale segments of the lodging industry. As of April 14, 2015, the Company’s portfolio consisted of 91 hotels with a total of 11,679 guestrooms located in 21 states.
For additional information, please visit the Company’s website, www.shpreit.com.
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 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, 2014 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.