SIOUX FALLS, S.Dak.--(BUSINESS WIRE)--Summit Hotel Properties, Inc. (NYSE: INN) (the “Company”) today announced the pricing of its initial public offering of 26,000,000 shares of common stock at a public offering price of $9.75 per share.
The offering is expected to close on February 14, 2011. The underwriters have been granted a 30-day option to purchase up to an additional 3,900,000 shares at the public offering price, less the underwriting discount, to cover over-allotments, if any. All the shares are being offered by the Company. The shares are expected to begin trading on February 9, 2011 on the New York Stock Exchange under the symbol “INN.”
Concurrent with the closing of the offering, the Company expects to raise additional proceeds through a private placement to an affiliate of InterContinental Hotels Group on the terms described in the prospectus relating to the offering.
The Company will contribute the net proceeds of the offering and concurrent private placement to its operating partnership, which will use the net proceeds to repay or extinguish existing indebtedness and to fund capital improvements at the Company’s hotels and for general corporate and working capital purposes.
Deutsche Bank Securities, Baird and RBC Capital Markets are the joint book-running managers of the offering. The co-managers of the offering are KeyBanc Capital Markets and Morgan Keegan.
A registration statement relating to these securities has been declared effective by the Securities and Exchange Commission. This press release shall not constitute an offer to sell or the solicitation of an offer to buy the offered securities, nor shall there be any sale of, these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or other jurisdiction. The offering of these securities is being made only by means of a prospectus. A copy of the final prospectus related to the offering will be filed with the Securities and Exchange Commission and may be obtained, when available, by contacting Deutsche Bank Securities Inc., Attention: Prospectus Department, Harborside Financial Center, 100 Plaza One, Jersey City, NJ 07311-3988, or by calling (800) 503-4611, or by e-mail at prospectus.cpdg@db.com; Robert W. Baird & Co. Incorporated, Attention: Syndicate Department, 777 E. Wisconsin Avenue, Milwaukee, WI 53502, or by calling (800) 792-2413, or by emailing syndicate@rwbaird.com; RBC Capital Markets, LLC, Attention: Equity Syndicate, 200 Vesey Street, 8th Floor, New York, NY 10281-8098, or by calling (877) 822-4089.
About Summit Hotel Properties, Inc.
Summit Hotel Properties, Inc. is a self-managed real estate investment trust that was recently organized to continue and expand the existing hotel investment business of its predecessor, Summit Hotel Properties, LLC, a leading U.S. hotel owner. The Company will focus exclusively on acquiring and owning premium-branded select-service hotels in the upscale and midscale without food and beverage segments of the U.S. lodging industry. Following completion of the initial public offering and the formation transactions described in the Company’s IPO prospectus, Summit Hotel Properties, Inc.’s initial portfolio will consist of 65 hotels with a total of 6,533 guestrooms located in 19 states.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements are based upon the Company’s present expectations, but these statements are not guaranteed to occur. For example, the fact that the Company has priced its initial public offering may imply that the offering will close; however, the closing is subject to conditions customary in transactions of this type and may be delayed or may not occur at all. Similarly, the completion of the concurrent private placement is subject to the closing of the offering, as well as other customary closing conditions and may be delayed or may not occur at all. In addition, the fact that the underwriters have been granted an over-allotment option may imply that this option will be exercised; however, the underwriters are not under any obligation to exercise this option, or any portion of it, and may not do so. Investors should not place undue reliance upon forward-looking statements.