Summit Hotel Properties, Inc.
), a real estate investment trust (REIT), recently acquired a
portfolio of eight Hyatt hotels spread across diverse locations for
$87.4 million. The portfolio comprising 1,043 guest rooms was
purchased from the affiliates of
Hyatt Hotels Corporation
). The acquisition was partially funded from a just-concluded
Recently in October 2012, Summit Hotels announced the pricing of
12 million shares at $8.15 each to enhance its liquidity. In this
offering, the underwriters fully exercised an option to purchase up
to an additional 1.8 million shares. The offering size was
increased by 20% to 12 million shares and the total number of
shares eventually sold was 13.8 million.
Through this strategic initiative, the company expects to
enhance the quality of its portfolio and expects it to be accretive
to earnings going forward. At the end of the second quarter 2012,
the company had $11.6 million in cash and cash equivalents. For the
twelve-month period ended June 30, 2012, the hotels in the Hyatt
Portfolio had occupancy of 74.0%, at an average daily rate (ADR) of
$96.42 and revenue per available room (RevPAR) of $71.35.
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 81 hotels with a total of 8,576 guestrooms located in
HYATT HOTELS CP (H): Free Stock Analysis Report
HOST HOTEL&RSRT (HST): Free Stock Analysis
SUMMIT HOTEL PR (INN): Free Stock Analysis
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Summit Hotel currently retains a Zacks #5 Rank, which translates
into a short-term Strong Sell rating. We also have a long-term
Neutral recommendation on the stock. One of its competitors,
Host Hotels & Resorts Inc
) holds a Zacks #2 Rank, which translates into a short term Buy