Summit Hotel to Offer Shares - Analyst Blog

By
A A A

Summit Hotel Properties, Inc. ( INN )    a real estate investment trust (REIT), recently announced the pricing of 12 million shares at $8.15 each to enhance its liquidity. The company has also decided to grant the underwriters a 30-day option to purchase up to an additional 1.8 million shares. The offering is expected to close on October 3, 2012.

Summit Hotel will generate $93.0 million in net proceeds from the offering and the proceeds will contribute to its operating partnership.

The operating  partnership  intends to use the net proceeds from the offering to partly  fund the  purchase prices for the eight-hotel portfolio of unencumbered Hyatt hotels , the  Hilton Garden Inn in Fort Worth, Texas and the Residence Inn in Salt Lake City, Utah.  Additionally, the company also intends to use a portion of the net proceeds to reduce the outstanding balance under its senior secured revolving credit facility.

As of June 30, 2012, Summit Hotel had total outstanding debt of $298.4 million, including $54.4 million outstanding on its senior secured credit facility. At the end of the second quarter 2012, the company had $11.6 million in cash and cash equivalents.

Summit Hotel is focused on the acquisition and ownership of premium-branded hotels in the upscale and upper mid-scale segments of the lodging industry. Presently, the company's hotel portfolio consists of 73 hotels with a total of 7,533 guestrooms located in 20 states.

Summit Hotel currently retains a Zacks #3 Rank, which translates into a short-term Hold rating. We also have a long-term Neutral recommendation on the stock. One of its competitors, Host Hotels & Resorts Inc ( HST ) holds a Zacks #2 Rank, which translates into a short term Buy rating.


 
HOST HOTEL&RSRT (HST): Free Stock Analysis Report
 

SUMMIT HOTEL PR (INN): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.




This article appears in: Investing , Business , Stocks

Referenced Stocks: HST , INN

Zacks.com

Zacks.com

More from Zacks.com:

Related Videos

Renovating the Empty Nest
Renovating the Empty Nest           

Stocks

Referenced

Most Active by Volume

93,878,383
  • $2.23 ▲ 39.38%
51,087,031
  • $16.73 ▼ 0.06%
49,332,388
  • $2.02 ▼ 35.26%
41,208,585
  • $35.07 ▲ 1.30%
39,602,660
  • $93.88 ▲ 3.51%
38,838,128
  • $131.39 ▲ 1.02%
38,654,579
  • $27.72 ▲ 0.29%
38,235,949
  • $6.16 ▼ 0.96%
As of 5/21/2015, 04:15 PM


Find a Credit Card

Select a credit card product by:
Select an offer:
Search
Data Provided by BankRate.com