Summit Hotels to go public: Get details

Summit Hotel Properties, Inc.  today announced that it has priced its underwritten public offering of 9,000,000 shares of its common stock at a public offering price of $16.50 per share.  The Company estimates that the net proceeds from the offering, after underwriting discounts and commissions and estimated offering expenses will be approximately $142.4 million.

The Company has granted the underwriters in the offering a 30-day option to purchase up to an additional 1,350,000 shares of its common stock.  Subject to customary closing conditions, the offering is expected to close on or about May 15, 2017.

The Company intends to contribute the net proceeds from the offering to Summit Hotel OP, LP, its operating partnership, which intends to use the net proceeds for general corporate purposes, including repayment of borrowings under its senior unsecured revolving credit facility and acquisitions of additional hotel properties, which may include the 261-guestroom Courtyard by Marriott the Company has under contract to purchase for $85.0 million in the second quarter of 2017.

Raymond James, Deutsche Bank Securities, BofA Merrill Lynch, RBC Capital Markets, and Baird are acting as joint book-running managers for the offering.  The senior co-managers for the offering are KeyBanc Capital Markets and PNC Capital Markets LLC.  BB&T Capital Markets and Canaccord Genuity are acting as co-managers.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission and was declared effective.  This press release shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of, or any solicitation of an offer to buy, these securities in any state or 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 jurisdiction. The offering is being made solely by means of the prospectus, including a preliminary prospectus supplement, forming part of the effective shelf registration statement.