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Wednesday, 26 September 2012

Summit to Pay $87.4Mln for 8 Hyatt Place Hotels

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Summit Hotel Properties Inc. has agreed to buy a portfolio of eight Hyatt Place hotels with 1,043 rooms from Hyatt Hotels Corp. for $87.4 million.

The hotels, in Arizona, Colorado, Illinois, Maryland and Texas, operated at a 74 percent occupancy rate during the 12 months through the end of June and generated $71.35 in revenue per available room during the period.

Summit said it expects to tap Select Hotels Group, an affiliate of Hyatt, to operate the properties, three of which are in the Denver area, two in the Phoenix area, and one each in the Dallas, Chicago and Baltimore areas.

Summit, a Sioux Falls, S.D., REIT, that went public only last year, will fund the portfolio's purchase with proceeds from a planned stock offering. The REIT has filed to sell 10 million common shares, which if sold at current prices, would generate roughly $85 million. It will also use proceeds of the stock offering to fund the purchase of two additional hotels: the 178-room Residence Inn in Salt Lake City, for which it's paying $20 million, including the assumption of $14.1 million of debt, and the 98-room Hilton Garden Inn in Fort Worth, Texas, for which it's paying $7.2 million.

Comments? E-mail Orest Mandzy, or call him at (267) 247-0112, Ext. 211.


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“The Weekly” is Commercial Real Estate Direct’s PDF newsletter, sent to subscribers every Friday morning. With over 100 news stories published on Commercial Real Estate Direct each week, “The Weekly” features the top stories in commercial real estate that industry participants need to know first. “The Weekly” also contains:

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Additional Info

  • Syndicate to Realpoint: No
  • Sector: Hotel & Resort
  • Valuation: Between $50 million and $100 million
  • Private: No
Read 549 times Last modified on Wednesday, 26 September 2012

Data Digest







Top Bookrunners Domestic, Private-Label CMBS - 2017
Investment Bank #Deals Vol$mln MktShr%
Goldman Sachs 17.59 11,819.34 13.68
JPMorgan Securities 14.52 10,968.11 12.70
Citigroup 12.04 10,012.71 11.59
Wells Fargo Securities 14.02 9,936.06 11.50
Deutsche Bank 12.55 9,879.74 11.44




cppichart FP



CMBS 2.0 Spreads


Top CMBS Loan Contributors - 2017
Lender #Loans Vol$mln MktShr%
Goldman Sachs 146.89 11,719.34 13.63
JPMorgan Chase Bank 117.68 10,114.14 11.76
Deutsche Bank 198.48 9,689.97 11.27
Morgan Stanley 166.18 8,539.78 9.93
Citigroup 199.05 8,088.24 9.41





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