Summit Closes Acquisition of San Francisco Hotel

AUSTIN, TX—Summit Hotel Properties has closed on the joint venture transaction for the acquisition of a 252-room Holiday Inn Express  property located on Fisherman’s Wharf in San Francisco.

Summit acquired the hotel from an unaffiliated seller for a purchase price of $60.5 million through a joint venture with an affiliate of IHG (InterContinental Hotels Group). The Hotel joins the 10 IHG-branded hotels in the Company’s portfolio, including the Holiday Inn Atlanta-Gwinnett Place and the Staybridge Suites Denver that were previously acquired under our current sourcing agreement. The joint venture gives the Company an approximate 80% ownership interest in the Hotel, which will be operated under a long-term IHG management agreement. The Company currently expects the joint venture to spend an aggregate of approximately $3.0 million for improvements at the Hotel within the next 12 months. The Company anticipates a post-renovation estimated NTM EBITDA multiple for the Hotel in the range of 11.0x to 12.0x based on management’s current estimate of EBITDA.