AUSTIN, Texas, Nov. 27, 2017 /PRNewswire/ -- Summit Hotel Properties, Inc. (NYSE: INN) (the "Company") today announced that it has completed the acquisition of four hotels with a combined total of 652 guestrooms for an aggregate purchase price of $164 million, or approximately $252,000 per key. The portfolio includes the 207-guestroom Courtyard New Haven at Yale, the 148-guestroom Hilton Garden Inn Boston/Waltham, the 175-guestroom Residence Inn Cleveland Downtown, and the 122-guestroom Homewood Suites by Hilton Tucson/St. Philip's Plaza University. The agreements to acquire the portfolio were previously announced on November 13, 2017.
Adjacent to Yale University in a prime location, the Courtyard New Haven at Yale is a unique opportunity to acquire the only Marriott-branded hotel within nearly ten miles of downtown New Haven. After undergoing a comprehensive renovation of all public spaces and guestrooms in 2016 and with the city of New Haven's strict zoning and design requirements, the Company expects the hotel to benefit from very limited new supply and continue to be a market leader. Other demand generators and local attractions include the Yale-New Haven Hospital, Smilow Cancer Center, Yale Peabody Museum, Lighthouse Point Park, and the Knights of Columbus Museum.
The Hilton Garden Inn Boston/Waltham is centrally located along the Route 128/Interstate 95 corridor, also known as "America's Technology Highway." Known for its high barriers to entry and strong fundamentals, Boston is a dynamic gateway market with a diverse and stable demand base, and is a premier destination for international meetings and conventions. The hotel benefits from exceptional corporate demand with 16.4 million square feet of office space situated within three miles of the property and another one million square feet under construction. The Company anticipates investing approximately $4.0 to $5.0 million into a complete renovation of all public spaces and guestrooms over the next two years.
Located in the heart of Cleveland's central business district ("CBD"), the recently-renovated Residence Inn Cleveland Downtown is well-positioned within the CBD's 9.5 million square feet of Class A office space, which includes the headquarters of Fortune 500 companies Sherwin-Williams, KeyCorp, and Cliffs Natural Resources. In recent years, Cleveland has become a global leader in the healthcare, biomedical engineering, and technology industries. Leisure demand generators such as Progressive Field, Quicken Loans Arena, Horseshoe Casino Cleveland, and the nightlife of 4th Street are all located just a short walk away.
The Homewood Suites by Hilton Tucson/St. Philip's Plaza University is located in St. Philip's Plaza near the University of Arizona. The hotel's premier location benefits from a balanced mix of corporate, university, and leisure demand. Corporate demand generators include Raytheon Missile Systems, Texas Instruments, IBM, Intuit Inc., and Universal Avionics, among many others. Other demand generators include the University of Arizona, one of the largest universities in the nation with over 40,000 students and 3,000 faculty members, St. Philip's Plaza, a mixed-use development consisting of high-end dining and retail, the University of Arizona Medical Center, the University of Arizona Cancer Center, and Catalina Foothill tourism.
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 lodging industry. As of November 27, 2017, the Company's portfolio consists of 83 hotels located in 26 states with a total of 12,242 guestrooms.
For additional information, please visit the Company's website, www.shpreit.com and follow the Company on Twitter at @SummitHotel_INN.
Summit Hotel Properties, Inc.
SVP – Finance & Capital Markets
Forward Looking Statements
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 Litigation 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, capital expenditures or other financial items; descriptions of the Company's plans or objectives for future operations 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, 2016, 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.
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SOURCE Summit Hotel Properties, Inc.