Austin’s Summit Hotel Properties sees 50 percent jump in revenue

May 13, 2014
Austin American Statesman

Austin-based Summit Hotel Properties saw revenue jump 50 percent in the first quarter, the company reported Monday

The real estate investment trust operates 90 hotels with more than 11,000 guest rooms across 22 states

Summit said revenue hit $89.5 million in the first three months of 2014, up from $59.7 million during the same period a year earlier. The company said last week it would pay a quarterly dividend of 11.25 cents per share on its common stock

The average daily rate at Summit’s various hotels was $110.01 during the first quarter, an increase of 4.6 percent, while average occupancy grew by 3.6 percent. Both figures are above the industrywide increases of 3.8 percent and 2.9 percent, respectively, seen during the first quarter, according to the company

During the first quarter, Summit acquired four hotels at a total cost of $125.7 million. The properties – one each in Houston and Santa Barbara, Calif., and two in San Francisco – have a combined 591 rooms

Since January 2013, Summit said it has added 23 hotels to its portfolio

“We are pleased with our acquisition activity in the first quarter of the year, including the three hotels in California, which continues our expansion on the West Coast,” Hansen said. “Looking to the balance of the year, we continue to see a solid pipeline of potential transactions to further grow our portfolio.”

“We completed 11 projects in the first quarter,” Hansen said, “and our team continues to execute these improvement programs in order to drive revenue growth, operating margins and value across our portfolio.”

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