INN - Summit Hotel Properties acquires 27-hotel portfolio from NewcrestImage for $822M

Summit Hotel Properties (NYSE:INN) entered into a definitive contribution and purchase agreement to acquire a 27-hotel portfolio totaling 3,709 guestrooms, two parking structures and various financial incentives through its existing JV with GIC for total consideration of $822M from NewcrestImage affiliates. The total consideration consists of $776.5M, or $209K/key, for the 27-hotel portfolio, $24.8M for the two parking structures and $20.7M for the various financial incentives. "We expect the transaction to be immediately accretive to earnings and leverage-neutral to our balance sheet leaving us ample investment capacity to continue to grow our portfolio," president & CEO Jonathan P. Stanner commented. The average effective age of the acquisition portfolio is only 3.8 years and over 70% of the guestrooms were developed since 2015 which will minimize near-term capital expenditure needs. The transaction would increase the company's total room count by ~35% to 15K+ keys across 100 hotels in 42 markets across the

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Summit Hotel Properties acquires 27-hotel portfolio from NewcrestImage for $822M