INN - Summit Hotel Properties updates on transaction activity

2023-06-05 07:00:26 ET

• Summit Hotel Properties ( NYSE: INN ) has completed the acquisition of the 120-guestroom Residence Inn Scottsdale North for $29.0M through its joint venture with GIC. Additionally, the Company is providing an update on previously announced disposition activity.
• The Company expects the hotel to yield between an 8.0 percent and 8.5 percent capitalization rate on full year estimated 2023 net operating income. The Company funded its 51% interest in the joint venture acquisition using a portion of the net proceeds generated from the recently completed four-hotel portfolio sale.
• The Company completed the previously announced disposition of four wholly-owned hotels totaling 467 guestrooms for a gross sales price of $28.1M.
• Net proceeds from the sale were used to fund the Company's 51% interest in the aforementioned Residence Inn Scottsdale North joint venture acquisition and reduce the outstanding balance of the Company's unsecured revolving credit facility.
• The Company also announced the termination of its previously announced agreement to dispose of two wholly-owned hotels totaling 283 guestrooms for a gross sales price of $50.5 million.
• Source: Press Release

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