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Summit Hotel Properties Acquires Four Pending Hotels

Wednesday September 25th, 2013 - 9:47AM

AUSTIN, TX—Summit Hotel Properties, Inc. announced that it has four hotel properties, containing an aggregate of 503 guestrooms, under contract to acquire.

Summit Hotel Properties announced that it has entered into definitive agreements to acquire a portfolio of three Southern California hotels containing an aggregate of 321-guestrooms for a purchase price of approximately $59 million.

Summit Hotel Properties expects to implement approximately $2.9 million in capital improvements to the portfolio and anticipates a post-renovation estimated NTM capitalization rate for the portfolio in the range of 8.25% to 9% based on management’s current estimate of net operating income.

“These top quality assets in high barrier to entry markets provide significant expansion of our west coast presence,” stated Dan Hansen, president and CEO of Summit Hotel Properties. “We welcome the opportunity to work with a new, high quality management team and continue to improve their performance."

Summit Hotel Properties plans to acquire the 98-guestroom Hampton Inn located in Santa Barbara, CA. The second property is a 115-guestroom Hampton Inn & Suites located in Ventura, CA. The third property is a 108-guestroom Hampton Inn & Suites located in San Diego. The company also announced that it has entered into a definitive agreement to acquire a 182-guestroom Hilton Garden Inn located in Houston.