AUSTIN, Texas, January 4, 2022 / PRNewswire / – Summit Hotel Properties, Inc. (NYSE: INN) (the “Company”) today announced that it has completed the acquisition of the 120-room Embassy Suites by Hilton Tucson / Paloma Village for $ 25.5 million through its joint venture with GIC on December 21, 2021. The investment represents a market leading high quality hotel in a rapidly growing market.
The property’s excellent location and dominant Embassy Suites brand affiliation have resulted in the hotel consistently ranking at the top of its competition, with an average RevPAR index of nearly 150% over the past five years. . While occupancy and ADR in the Tucson market are historically strongest in February and March, primarily due to leisure travel, Embassy Suites benefit from year-round demand from a multitude of sources within government, corporate and business traveler segments. The company’s joint venture with GIC also owns the Homewood Suites by Hilton Tucson / St. Philip’s Plaza University, located less than three kilometers south of the Embassy Suites, will allow the company to implement operational synergies and revenue improvement strategies that will benefit both hotels.
Situated on nearly six acres, the Embassy Suites location in the Catalina Foothills places it among Tucson’s most upscale single-family homes, shops, and restaurants, and offers significant barriers to entry. Embassy Suites was built in 2007, and since then no other hotel has been built within a three-mile radius. The hotel is adjacent to La Encantada – a luxury open-air mall with high-quality dining options and an attractive tenant list including Apple, Coach, Kendra scott, Case and barrel, Williams sonoma, Pottery Barn and Lululemon, among others. Directly east of the Embassy Suites is La Paloma Country Club – a private 27-hole Jack Nicklaus Signature Design Golf course, world-class tennis facilities, a swimming pool complex and a variety of dining options . The additional demand in the market is generated by the University of Arizona and its health network, government and related contracting companies, youth sports teams, national park enthusiasts and business travelers.
The joint venture acquired the property with a combination of cash and an assumed loan with a balance of approximately $ 13.3 million. The loan has a fixed interest rate of 4.99% and a maturity of June 2028. After this transaction, the Company maintains nearly $ 450 million of total liquidity and more $ 150 million current investment capacity authorized under changes to its credit facility in order to pursue future investment opportunities.
The company expects the hotel to generate a full-year 2022 net operating return of between 7.0% and 7.5%.
About Summit Hotel Properties
Summit Hotel Properties, Inc. is a publicly traded real estate investment trust that focuses on owning high-end branded hotels with efficient operating models primarily in the high-end segment of the industry. accommodation. From January 4, 2022, the Company’s portfolio consisted of 74 hotels, of which 61 are wholly owned, with a total of 11,518 rooms located in 23 states.
For more information, please visit the Company’s website, www.shpreit.com, and follow us on Twitter at @SummitHotel_INN.
This press release contains statements which 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, in accordance with safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identifiable by the use of forward-looking terms such as “may”, “will”, “should”, “potential”, “the intention “,” expect “,” “seek”, “anticipate”, “estimate”, “approximately”, “believe”, “could”, “plan”, “predict”, “foresee”, “continue”, “plan”, “probably”, “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 operational projections or others. forward-looking information. x Examples of forward-looking statements: the Company’s ability to achieve financial and operational synergies; projections of income and expenditure or other financial items; descriptions of the Company’s plans or objectives for future operations; EBITDAre forecasts; and descriptions of any assumptions underlying or related to any of the above 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 control of the Company, which could cause actual results to differ materially from these statements. These risks and uncertainties include, without limitation, the state of the US economy, supply and demand in the hospitality industry and other factors described in more detail in the documents filed by the Company with the 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 activities and financial results, please refer to the “Management’s Discussion and Analysis of the Financial Position 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, 2020, filed with the SEC, and its quarterly and other periodic filings with the SEC. The Company assumes no obligation to update the statements in this press release to conform with the statements to actual results or to changes in the expectations of the Company.
SOURCE Summit Hotel Properties, Inc.