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EX-23.1 - EX-23.1 - Summit Hotel OP, LPa13-2066_1ex23d1.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the

Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported):  January 7, 2013

 

SUMMIT HOTEL PROPERTIES, INC.

(Exact Name of Registrant as Specified in its Charter)

 

Maryland
(State or Other Jurisdiction
of Incorporation or Organization)

 

001-35074
(Commission File Number)

 

27-2962512
(I.R.S. Employer Identification No.)

 

SUMMIT HOTEL OP, LP

(Exact Name of Registrant as Specified in its Charter)

 

Delaware
(State or Other Jurisdiction
of Incorporation or Organization)

 

000-54273
(Commission File Number)

 

27-0617340
(I.R.S. Employer Identification No.)

 

12600 Hill Country Boulevard, Suite R-100

Austin, Texas 78738

(Address of Principal Executive Offices) (Zip Code)

 

(512) 538-2300
(Registrants’ telephone number, including area code)

 

2701 South Minnesota Avenue, Suite 2
Sioux Falls, South Dakota 57105

(Former name or former address, if changed since last report.)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

o            Written communications pursuant to Rule 425 under the Securities Act (17 CFR 240.425)

 

o            Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

o            Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

o            Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 

 



 

Item 8.01.  Other Events.

 

As previously reported, on October 5, 2012, Summit Hotel Properties, Inc. (the “Company”) purchased from affiliates of Hyatt Hotels Corporation (“Hyatt”), a portfolio of eight hotels containing an aggregate of 1,043 guestrooms (the “Initial Hyatt Hotels”) for $87.4 million. The Company has subsequently entered into an agreement to purchase from affiliates of Hyatt an additional three hotels containing an aggregate of 426 guestrooms (the “Additional Hyatt Hotels”) for a purchase price of $36.1 million, and the acquisition of the Additional Hyatt Hotels has become profitable.  Collectively, the Initial Hyatt Hotels and the Additional Hyatt Hotels are referred to as the “Hyatt 11 Portfolio.”

 

The Company and Summit Hotel OP, LP (the “Operating Partnership”) are filing this Current Report on Form 8-K to provide the audited and unaudited historical financial statements for the Hyatt 11 Portfolio referred to below and the unaudited pro forma financial statements for the Company and the Operating Partnership referred to below.

 

Forward-Looking Statements

 

This Current Report on Form 8-K contains certain “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 and the Operating Partnership’s expectations, but these statements are not guaranteed to occur.  Investors should not place undue reliance upon forward-looking statements.

 

Item 9.01.  Financial Statements and Exhibits.

 

(a)           Financial Statements of Business Acquired.

 

Hyatt 11 Portfolio:

 

Independent Auditors’ Report

 

Combined Balance Sheets as of September 30, 2012 (unaudited) and December 31, 2011

 

Combined Statements of Operations for the nine months ended September 30, 2012 and 2011 (unaudited) and the year ended December 31, 2011

 

Combined Statements of Owners’ Equity in Hotels for the nine months ended September 30, 2012 (unaudited) and the year ended December 31, 2011

 

Combined Statements of Cash Flows for the nine months ended September 30, 2012 and 2011 (unaudited) and the year ended December 31, 2011

 

Notes to Combined Financial Statements

 

(b)           Pro Forma Financial Information.

 

Summit Hotel Properties, Inc.:

 

Unaudited Pro Forma Consolidated Balance Sheet as of September 30, 2012

 

Unaudited Pro Forma Consolidated Statement of Operations for the nine months ended September 30, 2012

 

Unaudited Pro Forma Consolidated Statement of Operations for the year ended December 31, 2011

 

2



 

Summit Hotel OP, LP:

 

Unaudited Pro Forma Consolidated Balance Sheet as of September 30, 2012

 

Unaudited Pro Forma Consolidated Statement of Operations for the nine months ended September 30, 2012

 

Unaudited Pro Forma Consolidated Statement of Operations for the year ended December 31, 2011

 

(d)           Exhibits.

 

Exhibit

 

 

Number

 

Exhibit Description

23.1

 

Consent of KPMG LLP.

 

3



 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrants have duly caused this report to be signed on their behalf by the undersigned hereunto duly authorized.

 

 

SUMMIT HOTEL PROPERTIES, INC.

 

(Registrant)

 

 

 

By:

/s/ Christopher R. Eng

 

 

Christopher R. Eng

Date: January 7, 2013

 

Vice President, General Counsel and Secretary

 

 

 

SUMMIT HOTEL OP, LP

 

(Registrant)

 

 

 

By:

SUMMIT HOTEL GP, LLC,

 

 

its General Partner

 

 

 

By:

SUMMIT HOTEL PROPERTIES, INC.,

 

 

its Sole Member

 

 

 

By:

/s/ Christopher R. Eng

 

 

Christopher R. Eng

Date: January 7, 2013

 

Vice President, General Counsel and Secretary

 

4



 

HYATT 11 PORTFOLIO

 

Combined Financial Statements

 

September 30, 2012 and 2011
(unaudited) and December 31, 2011

 

(With Independent Auditors’ Report Thereon)

 



 

HYATT 11 PORTFOLIO

 

Table of Contents

 

 

Page

 

 

Independent Auditors’ Report

3

 

 

Combined Financial Statements:

 

 

 

Combined Balance Sheets as of September 30, 2012 (unaudited) and December 31, 2011

4

 

 

Combined Statements of Operations for the nine months ended September 30, 2012 and 2011 (unaudited) and the year ended December 31, 2011

5

 

 

Combined Statements of Owners’ Equity in Hotels for the nine months ended September 30, 2012 (unaudited) and the year ended December 31, 2011

6

 

 

Combined Statements of Cash Flows for the nine months ended September 30, 2012 and 2011 (unaudited) and the year ended December 31, 2011

7

 

 

Notes to Combined Financial Statements

8

 

2



 

Independent Auditors’ Report

 

The Board of Directors
Summit Hotel Properties, Inc:

 

We have audited the accompanying combined balance sheet of the Hyatt 11 Portfolio (the Portfolio) as of December 31, 2011, and the related combined statements of operations, owners’ equity in hotels, and cash flows for the year then ended. These combined financial statements are the responsibility of the Portfolio’s management. Our responsibility is to express an opinion on these combined financial statements based on our audit.

 

We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion.

 

In our opinion, the combined financial statements referred to above present fairly, in all material respects, the financial position of the Hyatt 11 Portfolio as of December 31, 2011, and the results of its operations and its cash flows for the year then ended, in conformity with U.S. generally accepted accounting principles.

 

 

/s/ KPMG LLP

 

December 20, 2012

 

3



 

HYATT 11 PORTFOLIO

Combined Balance Sheets

September 30, 2012 and December 31, 2011

 

 

 

September 30,

 

December 31,

 

 

 

2012

 

2011

 

 

 

(Unaudited)

 

 

 

Assets

 

 

 

 

 

Cash

 

$

107,759

 

39,586

 

Accounts receivable, net of allowance for doubtful accounts of $2,350 and $14,639

 

2,124,719

 

792,132

 

Inventories

 

 

7,388

 

Prepaid expenses and other assets

 

278,554

 

246,387

 

Investment in hotel properties, at cost:

 

 

 

 

 

Land

 

17,259,300

 

17,259,300

 

Building and improvements

 

110,321,593

 

107,075,858

 

Furnishings and equipment

 

39,240,315

 

40,214,869

 

Accumulated depreciation

 

(62,619,925

)

(55,160,928

)

 

 

104,201,283

 

109,389,099

 

Total assets

 

$

106,712,315

 

110,474,592

 

Liabilities and Owners’ Equity in Hotels

 

 

 

 

 

Accounts payable and accrued expenses

 

$

3,992,049

 

2,959,897

 

Due to affiliate, net

 

601,786

 

431,599

 

Advance deposits

 

98,767

 

172,078

 

Total liabilities

 

4,692,602

 

3,563,574

 

Owners’ equity in hotels

 

102,019,713

 

106,911,018

 

Total liabilities and owners’ equity in hotels

 

$

106,712,315

 

110,474,592

 

 

See accompanying notes to combined financial statements.

 

4



 

HYATT 11 PORTFOLIO

Combined Statements of Operations

Nine months ended September 30, 2012 and 2011 (unaudited) and the year ended December 31, 2011

 

 

 

Nine months ended

 

Year ended

 

 

 

September 30,

 

December 31,

 

 

 

2012

 

2011

 

2011

 

 

 

(Unaudited)

 

 

 

Department revenue:

 

 

 

 

 

 

 

Rooms

 

$

30,366,486

 

29,262,354

 

38,052,490

 

Food and beverage

 

1,349,575

 

1,524,227

 

2,002,338

 

Other departments

 

42,395

 

49,345

 

65,316

 

Rentals and other income

 

82,448

 

148,783

 

206,728

 

Total department revenue

 

31,840,904

 

30,984,709

 

40,326,872

 

Department expenses:

 

 

 

 

 

 

 

Rooms

 

9,291,356

 

8,714,235

 

11,511,855

 

Food and beverage

 

1,391,950

 

1,375,649

 

1,829,431

 

Other departments

 

248,555

 

205,493

 

277,084

 

Total department expenses

 

10,931,861

 

10,295,377

 

13,618,370

 

Operating expenses:

 

 

 

 

 

 

 

Administrative and general

 

2,819,910

 

2,834,349

 

3,759,300

 

Sales and marketing

 

2,380,211

 

2,343,360

 

3,043,519

 

Property operation and maintenance

 

1,863,506

 

1,803,248

 

2,439,842

 

Utilities

 

1,427,204

 

1,454,023

 

1,895,552

 

Management fees

 

2,228,912

 

2,199,149

 

2,830,445

 

Rent

 

50,082

 

57,092

 

74,202

 

Property and other taxes

 

1,532,709

 

1,660,493

 

2,117,265

 

Insurance

 

298,007

 

312,166

 

378,143

 

Depreciation

 

7,865,330

 

7,567,367

 

10,321,818

 

Total operating expenses

 

20,465,871

 

20,231,247

 

26,860,086

 

Other expense:

 

 

 

 

 

 

 

Loss on disposal of assets

 

(128,293

)

(7,655

)

(203,748

)

Net income (loss)

 

$

314,879

 

450,430

 

(355,332

)

 

See accompanying notes to combined financial statements.

 

5



 

HYATT 11 PORTFOLIO

Combined Statements of Owners’ Equity in Hotels

Nine months ended September 30, 2012 (unaudited) and year ended December 31, 2011

 

Balance at January 1, 2011

 

$

114,411,817

 

Net loss

 

(355,332

)

Distributions to owners, net

 

(7,145,467

)

Balance at December 31, 2011

 

106,911,018

 

Net income (unaudited)

 

314,879

 

Distributions to owners, net (unaudited)

 

(5,206,184

)

Balance at September 30, 2012 (unaudited)

 

$

102,019,713

 

 

See accompanying notes to combined financial statements.

 

6



 

HYATT 11 PORTFOLIO

Combined Statements of Cash Flows

Nine months ended September 30, 2012 and 2011 (unaudited) and the year ended December 31, 2011

 

 

 

Nine months ended

 

Year ended

 

 

 

September 30

 

December 31,

 

 

 

2012

 

2011

 

2011

 

 

 

(Unaudited)

 

 

 

Cash flows from operating activities:

 

 

 

 

 

 

 

Net income (loss)

 

$

314,879

 

450,430

 

(355,332

)

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

 

 

 

 

 

 

 

Depreciation

 

7,865,330

 

7,567,367

 

10,321,818

 

Loss on disposal of assets

 

128,293

 

7,655

 

203,748

 

Change in operating assets and liabilities:

 

 

 

 

 

 

 

Accounts receivable, net

 

(1,332,587

)

(257,006

)

68,117

 

Inventories

 

7,388

 

 

(7,388

)

Prepaid expenses and other assets

 

(32,167

)

40,920

 

(17,775

)

Due to affiliate, net

 

170,187

 

93,331

 

(18,433

)

Accounts payable and accrued expenses

 

1,408,027

 

437,652

 

18,790

 

Advance deposits

 

(73,311

)

(2,227

)

(3,146

)

Net cash provided by operating activities

 

8,456,039

 

8,338,122

 

10,210,399

 

Cash flows used in investing activities:

 

 

 

 

 

 

 

Purchases of property and equipment

 

(3,046,811

)

(1,375,531

)

(3,086,278

)

Cash flows used in financing activities:

 

 

 

 

 

 

 

Distributions to owners, net

 

(5,341,055

)

(7,010,523

)

(7,145,467

)

Net increase (decrease) in cash

 

68,173

 

(47,932

)

(21,346

)

Cash, beginning of period

 

39,586

 

60,932

 

60,932

 

Cash, end of period

 

$

107,759

 

13,000

 

39,586

 

Supplemental cash flow from disclosure:

 

 

 

 

 

 

 

Noncash contribution from owners

 

$

134,871

 

 

 

 

See accompanying notes to combined financial statements.

 

7



 

HYATT 11 PORTFOLIO

 

Notes to Combined Financial Statements

 

September 30, 2012 and 2011 (unaudited) and December 31, 2011

 

(1)       Description of Business and Basis of Accounting

 

The combined financial statements presented herein are for eleven select service hotels (the Portfolio) owned by certain subsidiaries of Hyatt Hotels Corporation (the Owners) and commonly managed by Select Hotel Groups, LLC. The Portfolio contains an aggregate of 1,469 guestrooms and the Portfolio includes the following hotels: Hyatt Place, Arlington, TX; Hyatt Place, Lone Tree, CO; Hyatt Place, Englewood, CO; Hyatt House, Englewood, CO; Hyatt Place, Owings Mills, MD; Hyatt Place, Lombard, IL; Hyatt Place, Phoenix, AZ; Hyatt Place, Scottsdale, AZ, Hyatt Place Hoffman Estates, IL; Hyatt Place Orlando, FL; and Hyatt Place Orlando Universal, FL.

 

These combined financial statements present the carve-out combined balance sheets, statements of operations, and statements of cash flows of the Portfolio, not a legal entity.

 

The accompanying combined financial statements are presented in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP). Intercompany accounts and transactions have been eliminated in combination. The preparation of the combined financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the combined financial statements and the accompanying notes. Actual results could differ from those estimates and assumptions. Such estimates and assumptions could change in the future as more information becomes known, which could impact the amounts reported and disclosed herein.

 

The accompanying unaudited combined financial statements of the Portfolio as of September 30, 2012 and for the nine-month periods ended September 30, 2012 and 2011, have been prepared pursuant to the Securities and Exchange Commission (SEC) rules and regulations. All amounts included in the notes to the combined financial statements referring to September 30, 2012, and for the nine-month periods ended September 30, 2012 and 2011, are unaudited. The accompanying combined financial statements reflect, in the opinion of management, all adjustments considered necessary for a fair presentation of the interim financial statements. All such adjustments are of a normal and recurring nature.

 

(2)       Summary of Significant Accounting Policies

 

(a)       Cash

 

Cash includes cash held in depository bank accounts.

 

(b)       Inventories

 

Inventories, consisting primarily of food and beverage items, are stated at the lower of cost or market. Cost is determined using the first-in, first-out method.

 

(c)        Investment in Hotel Properties

 

Investment in hotel properties is stated at cost. Depreciation is recorded on a straight-line basis over the estimated useful life of the assets. All repair and maintenance costs are expensed as incurred. The estimated useful lives are:

 

Building and improvements

 

15 – 50 years

Furnishings and equipment

 

2 – 21 years

 

(Continued)

 

8



 

HYATT 11 PORTFOLIO

 

Notes to Combined Financial Statements

 

September 30, 2012 and 2011 (unaudited) and December 31, 2011

 

(d)       Impairment of Investment in Hotel Properties

 

If events or circumstances indicate that the carrying value of a hotel property to be held and used may be impaired, a recoverability analysis is performed based on estimated undiscounted future cash flows to be generated from the property. If the analysis indicated that the carrying value is not recoverable from future cash flows, the excess of the net book value over the estimated fair value is charged to earnings.

 

(e)        Advance Deposits

 

Advance deposits consist mainly of amounts collected for rooms, banquets, food and beverage, and other property operations in advance of providing services.

 

(f)        Income Taxes

 

No provision or liability for income taxes or income tax positions have been made in the combined financial statements since the combined financial statements do not contemplate the type of legal or tax entity that holds the Portfolio.

 

(g)       Advertising Costs

 

Advertising costs are expensed as incurred and are included in sales and marketing expenses in the accompanying statements of operations.

 

(h)       Revenue Recognition

 

Revenues are recognized when rooms are occupied and the services are provided. Revenues consist of mainly room sales and food and beverage sales. Additionally, the Portfolio collects sales, use, occupancy, and similar taxes, which are presented on a net basis in the accompanying combined statements of operations.

 

(i)        Accounts Receivable

 

Accounts receivable, which primarily represent amounts due from hotel guests, are recorded at management’s estimate of the amounts that will be ultimately collected. The Portfolio provides for an allowance for doubtful accounts, which is based on specific identification and management’s historical experience.

 

(j)        Due to Affiliates, net

 

Due to affiliates, net represents amounts payable to an affiliate of the Portfolio for services rendered related to advertising, promotion, sales, reservations, management fees, centralized services, loyalty program, insurance, various benefits plans, purchasing, and other charges.

 

(Continued)

 

9



 

HYATT 11 PORTFOLIO

 

Notes to Combined Financial Statements

 

September 30, 2012 and 2011 (unaudited) and December 31, 2011

 

(3)       Management Agreements

 

Upon acquisition of the hotels in the Portfolio, the Owners entered into management agreements with Select Hotel Group, LLC (an affiliate of Hyatt Hotel Corporation). The management agreements expire on the 20th anniversary of the opening date of the hotel and have one renewal option for 10 years. Management fees are calculated in accordance with the terms of the management agreements and consist of a basic fee and an incentive fee for hotel operations. The basic fee for hotel operations is equal to 7% of gross receipts, as defined. The incentive fee for hotel operations is equal to 10% of an amount, if any, by which eligible additional basic fee profit, as defined, exceeds the additional basic fee.

 

For the year ended December 31, 2011, the basic and incentive management fees were $2,830,445. Basic and incentive management fees were $2,228,912 for the nine months ended September 30, 2012 (unaudited) and $2,199,149 for the nine months ended September 30, 2011(unaudited).

 

(4)       Related Party Transactions

 

In connection with its operations and the Owners’ customary practices, the Portfolio incurred charges from affiliates for services, including advertising, promotion, sales, reservations, management fees, centralized services, loyalty program, insurance, various benefits plans, purchasing, and other charges. Total charges for the services were $7,588,165 for the year ended December 31, 2011 and $6,038,135 and $5,826,363 for the nine months ended September 30, 2012 (unaudited) and 2011 (unaudited), respectively. As of December 31, 2011 and September 30, 2012 (unaudited), $431,599 and $601,786, respectively, is included as due to affiliate, net in the accompanying combined balance sheets.

 

(5)       Commitments and Contingencies

 

The nature of the Portfolio’s operations exposes it to the risk of claims and litigation in the normal course of its business. Although the outcome of such matters cannot be determined, management believes the ultimate resolution of these matters will not have a material effect on the combined financial position, results of operations, or cash flows of the Portfolio.

 

(6)       Subsequent Events

 

Management has evaluated subsequent events through December 20, 2012, the date the combined financial statements were available to be issued.

 

On October 5, 2012, Summit Hotel OP, LP (Summit) acquired eight of the hotels in the Portfolio for approximately $87.4 million. The acquired hotels are Hyatt Place — Arlington TX, Hyatt Place — Lone Tree CO, Hyatt Place — Engelwood CO, Hyatt House — Englewood CO, Hyatt Place — Owings Mills MD, Hyatt Place — Lombard IL, Hyatt Place — Phoenix AZ and Hyatt Place — Scottsdale AZ. On October 24, 2012, Summit executed an agreement to purchase the remaining three hotels in the Portfolio from certain affiliates of the Owners.

 

10



 

UNAUDITED PRO FORMA FINANCIAL INFORMATION OF SUMMIT HOTEL PROPERTIES, INC. AND SUMMIT HOTEL OP, LP

 

Summit Hotel Properties, Inc. (the “Company”) is a self-advised hotel investment company that was organized on June 30, 2010 as a Maryland corporation. The Company holds both general and limited partnership interests in Summit Hotel OP, LP (the “Operating Partnership”), a Delaware limited partnership also organized on June 30, 2010. On February 14, 2011, the Company closed on its initial public offering (“IPO”) and a concurrent private placement of its common stock, and the Operating Partnership and Summit Hotel Properties, LLC (the “Predecessor”) completed the merger of the Predecessor with and into the Operating Partnership.

 

On October 3, 2012, the Company closed on its first follow-on common stock offering and issued 13,800,000 shares of common stock for net proceeds of $107.0 million. The Company contributed the net proceeds to the Operating Partnership in exchange for common units. The Operating Partnership used the proceeds to fund the cash portion of acquisitions of 10 hotels that were under contract to purchase (including the portfolio of eight hotels discussed in the following paragraph) and pay down the principal balance of its senior secured revolving credit facility.

 

On October 5, 2012, the Company purchased from affiliates of Hyatt Hotels Corporation (“Hyatt”), a portfolio of eight hotels containing an aggregate of 1,043 guestrooms for $87.4 million. On October 24, 2012, the Company entered into an agreement to purchase from affiliates of Hyatt an additional three hotels containing an aggregate of 426 guestrooms for a purchase price of $36.1 million. This agreement was subject to certain conditions, including the completion of due diligence. Due diligence was completed on December 20, 2012, and the Company believes that it is probable that the purchase of the additional three hotels will occur. Collectively these eleven hotels are referred to as the Hyatt 11 Portfolio.

 

The unaudited pro forma consolidated balance sheets as of September 30, 2012 are presented as if the first follow-on common stock offering and the acquisition of the Hyatt 11 Portfolio occurred on September 30, 2012. The unaudited pro forma consolidated statements of operations for the nine months ended September 30, 2012 and for the year ended December 31, 2011 are presented as if these transactions had been completed at the beginning of 2011.

 

The unaudited pro forma financial information is not necessarily indicative of what the Company’s results of operations would have been assuming the first follow-on common stock offering and the acquisition of the Hyatt 11 Portfolio had been completed at the beginning of 2011, nor is it indicative of the results of operations for future periods. The unaudited pro forma financial information reflects the preliminary application of purchase accounting to the acquisition of the Hyatt 11 Portfolio. The preliminary purchase accounting may be adjusted if any of the assumptions underlying the purchase accounting change. In management’s opinion, all adjustments necessary to reflect the effects of the acquisition of the Hyatt 11 Portfolio have been made. This unaudited pro forma financial information should be read in conjunction with the historical financial statements included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2011 and its Quarterly Report on Form 10-Q for the three and nine months ended September 30, 2012.

 

11



 

Summit Hotel Properties, Inc.

Unaudited Pro Forma Consolidated Balance Sheet

September 30, 2012

(in thousands)

 

 

 

Historic
Summit Hotel
Properties,
Inc.

 

Issuance of
13,800,000
Shares of
Common
Stock (1)

 

Acquisition
of Hyatt 11
Portfolio (2)

 

Pro Forma
Summit Hotel
Properties,
Inc.

 

ASSETS

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

10,288

 

$

107,000

 

$

(106,892

)

$

10,396

 

Restricted cash

 

4,275

 

 

 

4,275

 

Trade receivables

 

6,666

 

 

2,125

 

8,791

 

Prepaid expenses and other

 

4,390

 

 

189

 

4,579

 

Land held for development

 

19,007

 

 

 

19,007

 

Property and equipment, net

 

572,525

 

 

123,515

 

696,040

 

Deferred charges and other assets, net

 

8,987

 

 

 

8,987

 

Deferred tax benefit

 

2,709

 

 

 

2,709

 

Other assets

 

4,257

 

 

 

4,257

 

TOTAL ASSETS

 

$

633,104

 

$

107,000

 

$

18,937

 

$

759,041

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,254

 

$

 

$

1,093

 

$

2,347

 

Derivative liabilities

 

523

 

 

 

523

 

Accrued expenses

 

17,723

 

 

3,510

 

21,233

 

Mortgages and notes payable

 

312,250

 

 

14,791

 

327,041

 

TOTAL LIABILITIES

 

331,750

 

 

19,394

 

351,144

 

 

 

 

 

 

 

 

 

 

 

COMMITMENTS AND CONTINGENCIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

 

 

Preferred stock, $.01 par value per share, 100,000 shares authorized, 2,000 issued and outstanding (liquidation preference of $50,385)

 

20

 

 

 

20

 

Common stock, $.01 par value per share, 450,000 shares authorized, 31,501 issued and outstanding

 

315

 

138

 

 

453

 

Additional paid-in capital

 

285,169

 

106,862

 

 

392,031

 

Accumulated other comprehensive income (loss)

 

(431

)

 

 

(431

)

Accumulated deficit and distributions

 

(24,814

)

 

(457

)

(25,271

)

Total stockholders’ equity

 

260,259

 

107,000

 

(457

)

366,802

 

Noncontrolling interest

 

41,095

 

 

 

41,095

 

TOTAL EQUITY

 

301,354

 

107,000

 

(457

)

407,897

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND EQUITY

 

$

633,104

 

$

107,000

 

$

18,937

 

$

759,041

 

 

See Notes to Unaudited Pro Forma Financial Information

 

12



 

Summit Hotel Properties, Inc.

Unaudited Pro Forma Consolidated Statement of Operations

For the Nine Months Ended September 30, 2012

(in thousands, except per share)

 

 

 

Historic
Summit Hotel
Properties,
Inc.

 

Historic
Hyatt 11
Portfolio

 

Pro Forma
Adjustments

 

Pro Forma
Summit Hotel
Properties,
Inc.

 

REVENUE

 

 

 

 

 

 

 

 

 

Room revenue

 

$

135,133

 

$

30,367

 

$

 

$

165,500

 

Other hotel operations revenue

 

3,292

 

82

 

 

3,374

 

Total Revenue

 

138,425

 

30,449

 

 

168,874

 

 

 

 

 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

 

 

 

 

Hotel operating expenses

 

 

 

 

 

 

 

 

 

Rooms

 

39,037

 

9,291

 

 

48,328

 

Other direct

 

15,983

 

3,540

 

 

19,523

 

Other indirect

 

37,492

 

9,260

 

(319

)(3)

46,433

 

Other

 

669

 

50

 

 

719

 

Total hotel operating expenses

 

93,181

 

22,141

 

(319

)

115,003

 

Depreciation and amortization

 

24,836

 

7,865

 

(2,342

)(4)

30,359

 

Corporate general and administrative:

 

 

 

 

 

 

 

 

 

Salaries and other compensation

 

3,563

 

 

 

3,563

 

Other

 

2,758

 

 

 

2,758

 

Loan transaction costs

 

651

 

 

 

651

 

Hotel property acquisition costs

 

1,573

 

 

(249

)(5)

1,324

 

Total Expenses

 

126,562

 

30,006

 

(2,910

)

153,658

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM OPERATIONS

 

11,863

 

443

 

2,910

 

15,216

 

 

 

 

 

 

 

 

 

 

 

OTHER INCOME (EXPENSE)

 

 

 

 

 

 

 

 

 

Interest income

 

20

 

 

 

20

 

Other income

 

497

 

 

 

497

 

Interest expense

 

(11,748

)

 

(367

)(6)

(12,115

)

Gain (loss) on disposal of assets

 

(199

)

(128

)

 

(327

)

Gain (loss) on derivatives

 

(2

)

 

 

(2

)

Total Other Income (Expense)

 

(11,432

)

(128

)

(367

)

(11,927

)

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

 

431

 

315

 

2,543

 

3,289

 

 

 

 

 

 

 

 

 

 

 

INCOME TAX (EXPENSE) BENEFIT

 

99

 

 

 

99

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

 

530

 

315

 

2,543

 

3,388

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS ATTRIBUTABLE TO NONCONTROLLING INTEREST

 

(846

)

 

585

(7)

(261

)

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS ATTRIBUTABLE TO SUMMIT HOTEL PROPERTIES, INC.

 

1,376

 

315

 

1,958

 

3,649

 

 

 

 

 

 

 

 

 

 

 

PREFERRED DIVIDENDS

 

(3,469

)

 

 

(3,469

)

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON STOCKHOLDERS

 

$

(2,093

)

$

315

 

$

1,958

 

$

180

 

 

 

 

 

 

 

 

 

 

 

EARNINGS PER SHARE

 

 

 

 

 

 

 

 

 

Basic and diluted income (loss) from continuing operations per share

 

$

(0.08

)

 

 

 

 

$

0.00

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding- basic

 

29,713

 

 

 

13,800

(8)

43,513

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common shares outstanding- diluted

 

29,816

 

 

 

13,800

(8)

43,616

 

 

See Notes to Unaudited Pro Forma Financial Information

 

13



 

Summit Hotel Properties, Inc. and Summit Hotel Properties, LLC (Predecessor)

Unaudited Pro Forma Consolidated Statement of Operations

For the Year Ended December 31, 2011

(in thousands, except per share)

 

 

 

Historical
Summit Hotel
Properties,
Inc. 2/14/11
through
12/31/11

 

Historical
Summit Hotel
Properties,
LLC 1/1/11
through
2/13/11

 

Full Year
2011

 

Historic
Hyatt 11
Portfolio

 

Pro Forma
Adjustments

 

Pro Forma
Summit Hotel
Properties,
Inc.

 

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

Room revenue

 

$

131,638

 

$

14,268

 

$

145,906

 

$

38,053

 

$

 

$

183,959

 

Other hotel operations revenue

 

2,646

 

330

 

2,976

 

445

 

 

3,421

 

Total Revenues

 

134,284

 

14,598

 

148,882

 

38,498

 

 

187,380

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

Hotel operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Rooms

 

40,138

 

4,961

 

45,099

 

11,512

 

 

56,611

 

Other direct

 

17,672

 

2,658

 

20,330

 

4,613

 

 

24,943

 

Other indirect

 

35,870

 

4,686

 

40,556

 

12,128

 

(814

)(3)

51,870

 

Other

 

700

 

73

 

773

 

74

 

 

847

 

Total hotel operating expenses

 

94,380

 

12,378

 

106,758

 

28,327

 

(814

)

134,271

 

Depreciation and amortization

 

26,378

 

3,429

 

29,807

 

10,322

 

(2,958

)(4)

37,171

 

Corporate general and administrative:

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and other compensation

 

3,082

 

 

3,082

 

 

 

3,082

 

Other

 

3,479

 

 

3,479

 

 

 

3,479

 

Hotel property acquisition costs

 

254

 

 

254

 

 

 

254

 

Total Expenses

 

127,573

 

15,807

 

143,380

 

38,649

 

(3,772

)

178,257

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM OPERATIONS

 

6,711

 

(1,209

)

5,502

 

(151

)

3,772

 

9,123

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER INCOME (EXPENSE)

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

16

 

7

 

23

 

 

 

23

 

Interest expense

 

(13,193

)

(4,666

)

(17,859

)

 

(552

)(6)

(18,411

)

Gain (loss) on disposal of assets

 

(36

)

 

(36

)

(204

)

 

(240

)

Total Other Income (Expense)

 

(13,213

)

(4,659

)

(17,872

)

(204

)

(552

)

(18,628

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

 

(6,502

)

(5,868

)

(12,370

)

(355

)

3,220

 

(9,505

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME TAX (EXPENSE) BENEFIT

 

2,325

 

(339

)

1,986

 

 

 

1,986

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

 

(4,177

)

(6,207

)

(10,384

)

(355

)

3,220

 

(7,519

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS ATTRIBUTABLE TO NONCONTROLLING INTERESTS

 

(1,240

)

 

(1,240

)

 

774

(7)

(466

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS ATTRIBUTABLE TO SUMMIT HOTEL PROPERTIES, INC./ PREDECESSOR

 

(2,937

)

(6,207

)

(9,144

)

(355

)

2,447

 

(7,052

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PREFERRED DIVIDENDS

 

(411

)

 

(411

)

 

 

(411

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON STOCKHOLDERS/MEMBERS

 

$

(3,348

)

$

(6,207

)

$

(9,555

)

$

(355

)

$

2,447

 

$

(7,463

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS PER SHARE

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted income (loss) from continuing operations per share

 

$

(0.12

)

 

 

 

 

 

 

 

 

$

(0.03

)(9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common shares outstanding - basic and diluted

 

27,278

 

 

 

 

 

 

 

13,800

(8)

41,078

 

 

See Notes to Unaudited Pro Forma Financial Information

 

14



 

Summit Hotel OP, LP

Unaudited Pro Forma Consolidated Balance Sheet

September 30, 2012

(in thousands)

 

 

 

Historic
Summit Hotel
OP, LP

 

Issuance of
13,800,000
Common
Units (1)

 

Acquisition
of Hyatt 11
Portfolio (2)

 

Pro Forma
Summit Hotel
OP, LP

 

ASSETS

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

10,288

 

$

107,000

 

$

(106,892

)

$

10,396

 

Restricted cash

 

4,275

 

 

 

4,275

 

Trade receivables

 

6,666

 

 

2,125

 

8,791

 

Prepaid expenses and other

 

4,390

 

 

189

 

4,579

 

Land held for development

 

19,007

 

 

 

19,007

 

Property and equipment, net

 

572,525

 

 

123,515

 

696,040

 

Deferred charges and other assets, net

 

8,987

 

 

 

8,987

 

Deferred tax benefit

 

2,709

 

 

 

2,709

 

Other assets

 

4,257

 

 

 

4,257

 

TOTAL ASSETS

 

$

633,104

 

$

107,000

 

$

18,937

 

$

759,041

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

1,254

 

$

 

$

1,093

 

$

2,347

 

Derivative liabilities

 

523

 

 

 

523

 

Accrued expenses

 

17,723

 

 

3,510

 

21,233

 

Mortgages and notes payable

 

312,250

 

 

14,791

 

327,041

 

TOTAL LIABILITIES

 

331,750

 

 

19,394

 

351,144

 

 

 

 

 

 

 

 

 

 

 

COMMITMENTS AND CONTINGENCIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

 

 

Summit Hotel Properties, Inc., 31,501 common units outstanding, and 2,000 preferred units outstanding (liquidation preference of $50,385)

 

260,259

 

107,000

 

(334

)

366,925

 

Unaffiliated limited partners, 6,085 common units outstanding

 

41,095

 

 

(123

)

40,972

 

TOTAL EQUITY

 

301,354

 

107,000

 

(457

)

407,897

 

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND EQUITY

 

$

633,104

 

$

107,000

 

$

18,937

 

$

759,041

 

 

See Notes to Unaudited Pro Forma Financial Information

 

15



 

Summit Hotel OP, LP

Unaudited Pro Forma Consolidated Statement of Operations

For the Nine Months Ended September 30, 2012

(in thousands, except per share)

 

 

 

Historic
Summit Hotel
OP, LP

 

Historic
Hyatt 11
Portfolio

 

Pro Forma
Adjustments

 

Pro Forma
Summit Hotel
OP, LP

 

REVENUE

 

 

 

 

 

 

 

 

 

Room revenue

 

$

135,133

 

$

30,367

 

$

 

$

165,500

 

Other hotel operations revenue

 

3,292

 

82

 

 

3,374

 

Total Revenue

 

138,425

 

30,449

 

 

168,874

 

 

 

 

 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

 

 

 

 

Hotel operating expenses

 

 

 

 

 

 

 

 

 

Rooms

 

39,037

 

9,291

 

 

48,328

 

Other direct

 

15,983

 

3,540

 

 

19,523

 

Other indirect

 

37,492

 

9,260

 

(319

)(3)

46,433

 

Other

 

669

 

50

 

 

719

 

Total hotel operating expenses

 

93,181

 

22,141

 

(319

)

115,003

 

Depreciation and amortization

 

24,836

 

7,865

 

(2,342

)(4)

30,359

 

Corporate general and administrative:

 

 

 

 

 

 

 

 

 

Salaries and other compensation

 

3,563

 

 

 

3,563

 

Other

 

2,758

 

 

 

2,758

 

Loan transaction costs

 

651

 

 

 

651

 

Hotel property acquisition costs

 

1,573

 

 

(249

)(5)

1,324

 

Total Expenses

 

126,562

 

30,006

 

(2,910

)

153,658

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM OPERATIONS

 

11,863

 

443

 

2,910

 

15,216

 

 

 

 

 

 

 

 

 

 

 

OTHER INCOME (EXPENSE)

 

 

 

 

 

 

 

 

 

Interest income

 

20

 

 

 

20

 

Other income

 

497

 

 

 

497

 

Interest expense

 

(11,748

)

 

(367

)(6)

(12,115

)

Gain (loss) on disposal of assets

 

(199

)

(128

)

 

(327

)

Gain (loss) on derivatives

 

(2

)

 

 

(2

)

Total Other Income (Expense)

 

(11,432

)

(128

)

(367

)

(11,927

)

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

 

431

 

315

 

2,543

 

3,289

 

 

 

 

 

 

 

 

 

 

 

INCOME TAX (EXPENSE) BENEFIT

 

99

 

 

 

99

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

 

530

 

315

 

2,543

 

3,388

 

 

 

 

 

 

 

 

 

 

 

PREFERRED DIVIDENDS

 

(3,469

)

 

 

(3,469

)

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON UNITHOLDERS

 

$

(2,939

)

$

315

 

$

2,543

 

$

(81

)

 

 

 

 

 

 

 

 

 

 

EARNINGS PER UNIT

 

 

 

 

 

 

 

 

 

Basic and diluted income (loss) from continuing operations per unit

 

$

(0.08

)

 

 

 

 

$

(0.00

)

 

 

 

 

 

 

 

 

 

 

Weighted-average common units outstanding - basic

 

37,385

 

 

 

13,800

(8)

51,185

 

 

 

 

 

 

 

 

 

 

 

Weighted-average common units outstanding - diluted

 

37,496

 

 

 

13,800

(8)

51,296

 

 

See Notes to Unaudited Pro Forma Financial Information

 

16



 

Summit Hotel OP, LP and Summit Hotel Properties, LLC (Predecessor)

Unaudited Pro Forma Consolidated Statement of Operations

For the Year Ended December 31, 2011

(in thousands, except per unit)

 

 

 

Historical
Summit Hotel
OP, LP
2/14/11
through
12/31/11

 

Historical
Summit Hotel
Properties,
LLC 1/1/11
through
2/13/11

 

Full Year
2011

 

Historic
Hyatt 11
Portfolio

 

Pro Forma
Adjustments

 

Pro Forma
Summit Hotel
OP, LP

 

REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

Room revenue

 

$

131,638

 

$

14,268

 

$

145,906

 

$

38,053

 

$

 

$

183,959

 

Other hotel operations revenue

 

2,646

 

330

 

2,976

 

445

 

 

3,421

 

Total Revenues

 

134,284

 

14,598

 

148,882

 

38,498

 

 

187,380

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

 

 

 

 

 

 

 

 

Hotel operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

Rooms

 

40,138

 

4,961

 

45,099

 

11,512

 

 

56,611

 

Other direct

 

17,672

 

2,658

 

20,330

 

4,613

 

 

24,943

 

Other indirect

 

35,870

 

4,686

 

40,556

 

12,128

 

(814

)(3)

51,870

 

Other

 

700

 

73

 

773

 

74

 

 

847

 

Total hotel operating expenses

 

94,380

 

12,378

 

106,758

 

28,327

 

(814

)

134,271

 

Depreciation and amortization

 

26,378

 

3,429

 

29,807

 

10,322

 

(2,958

)(4)

37,171

 

Corporate general and administrative:

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and other compensation

 

3,082

 

 

3,082

 

 

 

3,082

 

Other

 

3,479

 

 

3,479

 

 

 

3,479

 

Hotel property acquisition costs

 

254

 

 

254

 

 

 

254

 

Total Expenses

 

127,573

 

15,807

 

143,380

 

38,649

 

(3,772

)

178,257

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM OPERATIONS

 

6,711

 

(1,209

)

5,502

 

(151

)

3,772

 

9,123

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

OTHER INCOME (EXPENSE)

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

16

 

7

 

23

 

 

 

23

 

Interest expense

 

(13,193

)

(4,666

)

(17,859

)

 

(552

)(6)

(18,411

)

Gain (loss) on disposal of assets

 

(36

)

 

(36

)

(204

)

 

(240

)

Total Other Income (Expense)

 

(13,213

)

(4,659

)

(17,872

)

(204

)

(552

)

(18,628

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES

 

(6,502

)

(5,868

)

(12,370

)

(355

)

3,220

 

(9,505

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME TAX (EXPENSE) BENEFIT

 

2,325

 

(339

)

1,986

 

 

 

1,986

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS

 

(4,177

)

(6,207

)

(10,384

)

(355

)

3,220

 

(7,519

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PREFERRED DIVIDENDS

 

(411

)

 

(411

)

 

 

(411

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME (LOSS) FROM CONTINUING OPERATIONS ATTRIBUTABLE TO COMMON UNITHOLDERS

 

$

(4,588

)

$

(6,207

)

$

(10,795

)

$

(355

)

$

3,220

 

$

(7,930

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS PER SHARE

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic and diluted income (loss) from continuing operations per unit

 

$

(0.12

)

 

 

 

 

 

 

 

 

$

(0.03

)(9)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average common units outstanding - basic and diluted

 

37,378

 

 

 

 

 

 

 

13,800

(8)

51,178

 

 

See Notes to Unaudited Pro Forma Financial Information

 

17



 

Summit Hotel Properties, Inc. and Summit Hotel OP, LP

Notes to Unaudited Pro Forma Financial Information

(dollars in thousands)

 


(1)         Reflects the issuance of 13,800,000 shares of commons stock by Summit Hotel Properties, Inc. and 13,800,000 common units by Summit Hotel OP, LP as if they occurred on September 30, 2012. Net proceeds, after deducting the underwriting discount and estimated offering costs were $107.0 million.

 

(2)         Reflects the acquisition of the Hyatt 11 Portfolio for a purchase price of $123.5 million as if it occurred on September 30, 2012. The acquisition was funded with the proceeds from the Company’s first follow-on common stock offering and borrowings under its senior secured revolving credit facility. The following is a summary of the Hyatt 11 Portfolio.

 

Brand

 

Location

 

Number of
Guestrooms

 

Hyatt Place

 

Dallas (Arlington), TX

 

127

 

Hyatt Place

 

Denver (Lone Tree), CO

 

127

 

Hyatt Place

 

Denver (Englewood), CO

 

126

 

Hyatt House

 

Denver (Englewood), CO

 

135

 

Hyatt Place

 

Baltimore (Owings Mills), MD

 

123

 

Hyatt Place

 

Chicago (Lombard), IL

 

151

 

Hyatt Place

 

Chicago (Hoffman Estates), IL

 

126

 

Hyatt Place

 

Phoenix, AZ

 

127

 

Hyatt Place

 

Scottsdale, AZ

 

127

 

Hyatt Place

 

Orlando (Convention), FL

 

149

 

Hyatt Place

 

Orlando (Universal), FL

 

151

 

Total

 

 

 

1,469

 

 

The following is a summary of assets and liabilities acquired, including an estimate of the Company’s initial allocation of the aggregate purchase price for the Hyatt 11 Portfolio, and the net cash disbursed in connection with the acquisition. The purchase price allocation is based on preliminary information and is, therefore, subject to change.

 

Assets and Liabilities Acquired

 

 

 

 

Land

 

$

17,413

 

Hotel buildings and improvements

 

98,989

 

Furniture, fixtures and equipment

 

7,113

 

Total purchase price

 

123,515

 

Cash acquired

 

108

 

Other assets

 

2,314

 

Total assets acquired

 

125,937

 

Other liabilities

 

4,603

 

Net assets acquired

 

$

121,334

 

 

Net Cash Disbursed

 

 

 

Purchase price