Hotel investment and real estate investment trust company Summit Hotel Properties Inc has concluded the purchase of three hotels in Florida, New York and Utah. The firm has spent almost $71.8 million on these three acquisitions.
Summit purchased the Residence Inn, which is a property formally owned by Marriott International and situated in Salt Lake City in Utah, for $20 million. Furthermore, it bought Hyatt Place, which is situated in Long Island, New York for $31 million and finally the Hampton Inn & Suites, which is situated in Tampa in the Sunshine State, for $20.8 million. The firm purchased the latter two properties from OTO Development LLC.
Summit believes that the purchase of Residence Inn will offer a post-renovation estimated NTM (next 12 months) EBITDA (earnings before interest, taxes, depreciation and amortization) multiple in the range of 10 to 11.5, based upon the management's current EBITDA estimate. The company expects to spend almost $6.5 million on the revamping of the property, with the acquisition having been first announced four months ago on 26th September 2012. The deal was finally closed on 21st December.
Hampton Inn and Hyatt Place are expected to be capable of generating post-renovation NTM EBITDA multiples of 11-12 and 10.5-11.5 respectively. In addition, the firm estimates that almost $0.3 million and $2 million will be spent on the renovations of Hyatt Place and Hampton Inn. The company concluded both of those deals on 27th December.
Summit Hotel Properties also sold off the Courtyard by Marriott Hotel, which is situated in Missoula in Montana, on 11th December, with the company receiving $7.65 million in sale proceeds.
