SIOUX FALLS, S.D.—Summit Hotel Properties, Inc. (the “Company”) announced the closing on October 23 of its acquisition of the 98-room Hilton Garden Inn in Fort Worth, Texas for a purchase price of $7.2 million.
The Company anticipates a post-renovation estimated NTM capitalization rate based on management’s current estimate of net operating income for the twelve-month period ending October 31, 2013 in the range of 8.5 to 9.5 percent. The Company expects to spend approximately $2.4 million for improvements at this hotel within the next 18 months, funding the improvements with available cash or additional borrowings under the Company’s senior secured revolving credit facility. The acquisition of this property was announced September 26, 2012 concurrent with the Company’s offering of common stock.
“This hotel is a great addition to the other eight properties we own in the Dallas-Fort Worth metro area,” said Company president and CEO Dan Hansen, in an announcement. “The strategy of clustering hotels in top markets such as this has proven to be successful for us and plays a key role in creating value for our investors.”