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Summit Hotel Properties Sells Six Hotels for $135m

Real estate investment trust Summit Hotel Properties announced the sale of six hotels totaling 815 guestrooms for $135 million.
By HNN Newswire
April 18, 2019 | 6:52 P.M.

AUSTIN, Texas, April 18, 2019 -- Summit Hotel Properties, Inc. (NYSE: INN) (the "Company") reported today that it has completed the disposition of six hotels totaling 815 guestrooms for an aggregate gross sales price of $135.0 million which resulted in an estimated net gain of $36.6 million. The portfolio of six hotels sold included:

  • Hampton Inn Boston-Norwood, MA; 139 rooms
  • Hampton Inn Santa Barbara/Goleta, CA; 101 rooms
  • Hampton Inn & Suites Minneapolis St. Paul Airport – Mall of America, MN; 146 rooms
  • Hyatt Place Dallas/Arlington, TX; 127 rooms
  • Residence Inn Salt Lake City Downtown, UT; 189 rooms
  • SpringHill Suites by Marriott Minneapolis St. Paul Airport – Mall of America, MN; 113 rooms

The aggregate gross sales price of $135.0 million, plus estimated future capital improvements, represented a 12.8x EBITDA multiple and 6.9 percent capitalization rate for the trailing twelve months ended March 31, 2019. The Company estimates that the hotels would have contributed approximately $9.5 million of EBITDAre through the remainder of 2019. Net proceeds from the sale were used to reduce the outstanding balance of the Company's unsecured revolving credit facility, which now has $395.0 million available to borrow.
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