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Summit Hotel Properties Closes USD 56.3m Acquisition of Courtyard by Marriott Charlotte City Center
Monday 19 June 2017

19 June 2017 - US-based lodging REIT Summit Hotel Properties, Inc. (NYSE: INN) has completed the acquisition of the 181-guestroom Courtyard by Marriott Charlotte City Center in North Carolina, USA for a total purchase price of USD 56.3m and entered into a management agreement with OTO Development, LLC, the company said.

The company estimates a capitalisation rate of 8.3 % based on management's current estimate of the hotel's net operating income during the first year of ownership.

Summit Hotel also estimates that the hotel will contribute approximately USD2.7 m of earnings before interest, taxes, depreciation and amortisation for the remainder of 2017.

For the twelve months ended 31 March 2017, the Hotel had revenue per available room of USD 129 and delivered an EBITDA margin of 54.7%, which compares favorably to the company's total portfolio RevPAR and hotel EBITDA margin of USD 114 and 37.8%, respectively, for the comparable period.

The hotel's guestrooms and public space were recently renovated, and the company plans to invest approximately USD 0.8m into redesigning the bar and Bistro area that will enhance the guest experience.

Summit Hotel Properties is a publicly-traded real estate investment trust focused on owning premium-branded hotels primarily in the upscale segment of the lodging industry.

As of 15 June 2017, the company's portfolio consisted of 76 hotels with a total of 10,796 guestrooms located in 22 states.
Details
Date Published: 19/06/2017
Target: Courtyard by Marriott Charlotte City Center
Country: USA
Deal Size: 56.3m (USD)
Sector: Hotels/Restaurants/Casinos/Catering
Type: LBO
Financing: Cash
Status: Closed
Vendor:
Buyer: Summit Hotel Properties, Inc
Comment:


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