Summit Hotel Properties, Inc. (NYSE: INN) (“the Company”) announced today that on May 13, 2016, it completed the sale of the Holiday Inn Express & Suites located in Irving (Las Colinas), Texas containing 128 guestrooms for a total sales price of $10.5 million.
“We are very pleased to have sold this hotel at a price we believe validates the benefits of premium select-service hotels. With RevPAR nearly 30 percent below our portfolio’s average, this sale demonstrates our commitment to enhancing portfolio quality,” said President and Chief Executive Officer, Daniel P. Hansen.
The sales price represents a capitalization rate of 7.7 percent on the hotel’s net operating income, including planned capital improvements, for the trailing twelve months ended March 31, 2016. The Company estimates the hotel would have contributed approximately $0.2 million and $0.6 million of EBITDA from the sale date through the second quarter and full year 2016, respectively. The hotel was not part of the previously announced disposition of 26 hotels to affiliates of American Realty Capital Hospitality Trust, Inc.