Austin real estate firm aims to raise $132 million in stock offering

Sep 17, 2013
Austin American Statesman

Austin-based Summit Hotel Properties Inc. announced the pricing of a secondary stock offering of 15 million shares in which it expects to raise $132.3 million, after deducting underwriting and other expenses

The offering, priced at $9.20 a share, is expected to close Wednesday

Summit is a hotel investment company that owns 93 hotels with 10,976 guest rooms in 24 states

It intends to use the loans primarily to reduce outstanding loan balances related to the acquisition of hotel properties. Remaining proceeds will be used for general corporate purposes

In its latest fiscal year, the company reported total revenue of $189.5 million, up nearly 33 percent from the year before. Its earnings before interest, taxes depreciation and amortization totaled $47 million, up 33 percent

The company said that as last Thursday, it had entered into agreements to buy six hotels with an aggregate acquisition cost of $165 million

“Consistent with our stated investment strategy, the properties currently under contract are located primarily with top 50 (metropolitan areas), with a particular concentration on the West Coast, operate under top brands and we believe they possess attractive in-place cash-flow characteristics,” it said in its filing

The company owns properties that are affiliated with several hotel chains including: Marriott International, Intercontinental Hotels Group, Hilton Worldwide Inc., Hyatt Hotels Corp., Starwood Hotels and Resorts and AmericInn International

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