Summit Hotel Properties Completes Sale of Hilton Garden Inn San Francisco Airport North for $75 Million
AUSTIN, TX, May 12, 2022 /PRNewswire/ — Summit Hotel Properties, Inc. (NYSE:INN) (the “Company”) announced today that it has completed the previously announced divestiture of the 169-room Hilton Garden Inn San Francisco Airport North for a gross sales of $75.0 millionor $444,000 per key, through its joint venture with GIC.
The transaction represents a capitalization rate of 1% based on the hotel’s net operating income after an FF&E reserve of 4% for the twelve months ended March, 31st2022. The joint venture will also waive a full refurbishment planned for the end of 2022, estimated at $7.1 millionor $42,000 by key, following the sale.
The joint venture acquired the hotel in October 2019 for $58.0 millionor $343,000 per key, and the transaction will result in an estimate $20.5 million net gain on sale. The net proceeds of the transaction are estimated at $73 millionwhose share of the Company will be equal to approximately $37 million. The Company expects to use the net proceeds from the sale, along with existing cash, to repay its only remaining debt maturity in 2022 for $62 million.
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 hotel industry. accommodation. From May 12, 2022the Company’s portfolio consisted of 100 hotels, 61 of which were wholly owned, with a total of 15,059 rooms located in 24 states.
For more information, please visit the company’s website, www.shpreit.com, and follow on Twitter at @SummitHotel_INN.
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 safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identifiable by the use of forward-looking terminology such as “may”, “will”, “should”, “potential”, ” intends”, “expects”, “seeks”, “anticipates”, “estimates”, “approximately”, “believes”, “could”, “projects”, “predicts”, “plans”, “continue”, “plan”, “likely”, “would” or other similar words or expressions. Forward-looking statements are based on certain assumptions and may include future expectations, future plans and strategies, financial and operating projections or other forward-looking information. Examples include forward-looking statements: the Company’s ability to achieve financial and operational synergies; income and expense projections or other financial items; descriptions of the Company’s plans or objectives for future operations; EBITDAre forecasts; and descriptions of the assumptions underlying or relating to any of the foregoing expectations about when they will occur. 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 these statements. These risks and uncertainties include, but are not limited to, the state of the U.S. economy, supply and demand in the hospitality industry, and other factors described in more detail in Company filings. with the Securities and Exchange Commission (“SEC”). Except as required by law, the Company disclaims any obligation to update forward-looking statements, whether as a result of new information, future events or otherwise.
For more information on 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. Company on Form 10-K for the fiscal year ended December 31, 2021, filed with the SEC, and its quarterly filings and other periodic filings with the SEC. The Company undertakes no obligation to update the statements contained in this press release to conform them to actual results or to changes in the Company’s expectations.
SOURCE Summit Hotel Properties, Inc.