Attached files
| file | filename |
|---|---|
| EX-23.1 - EXHIBIT 23.1 - Summit Hotel Properties, Inc. | a50788709ex23_1.htm |
| EX-99.1 - EXHIBIT 99.1 - Summit Hotel Properties, Inc. | a50788709ex99_1.htm |
| EX-99.2 - EXHIBIT 99.2 - Summit Hotel Properties, Inc. | a50788709ex99_2.htm |
| 8-K/A - SUMMIT HOTEL PROPERTIES, INC. 8-K/A - Summit Hotel Properties, Inc. | a50788709.htm |
Exhibit 99.3
UNAUDITED PRO FORMA FINANCIAL INFORMATION OF
SUMMIT HOTEL PROPERTIES, INC.
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 January 14, 2013, the Company closed on an underwritten common stock offering and issued 17,250,000 shares of common stock for net proceeds of $148.0 million. The Company used the proceeds to fund the acquisition of the three Hyatt hotels discussed below that were under contract to purchase and pay down the principal balance of its senior secured revolving credit facility.
On January 22, 2013, the Company purchased from affiliates of Hyatt Hotels Corporation (“Hyatt”), a portfolio of three hotels (the “Hyatt 3 Portfolio”) containing an aggregate of 426 guestrooms for a purchase price of $36.1 million. The Company had previously acquired from Hyatt a portfolio of eight hotels (the “Hyatt 8 Portfolio”) on October 5, 2012. Collectively the eleven hotels acquired from Hyatt are referred to as the “Hyatt 11 Portfolio.”
On March 11, 2013, the Company purchased a portfolio of five Marriott hotels in New Orleans, LA (the “New Orleans Marriott Portfolio”) containing an aggregate of 823 guestrooms for $135.0 million. The Company funded this acquisition with proceeds from term borrowings secured by previously acquired hotel properties and borrowings under its senior secured revolving credit facility.
On May 23, 2013, the Company purchased from affiliates of White Lodging Services Corporation four hotel properties (the “White Lodging Portfolio”) containing an aggregate of 786 guestrooms for a purchase price of $153.0 million. The Company funded this acquisition with senior secured term debt and borrowings under its senior secured revolving credit facility.
On September 19, 2013, the Company closed on an underwritten common stock offering and issued 17,250,000 shares of common stock for net proceeds of $152.2 million. The Company used a portion of the proceeds to reduce the outstanding balance of its $150 million senior secured credit facility and payoff its $92 million senior secured interim loan. The remaining proceeds will be used for general corporate purposes, including the acquisition of hotel properties.
On January 9, 2014, the Company purchased a Hilton Garden Inn in Houston, TX containing 182 guestrooms for a purchase price of $37.5 million, including the assumption of $17.8 million in debt. The Company funded this acquisition with proceeds from its September 19, 2013 common stock offering.
On January 10, 2014, the Company completed its purchase of a portfolio of three hotels in Southern California (the “SoCal Hampton Portfolio”) containing an aggregate of 321 guestrooms for a purchase price of $58.8 million. Consideration for this purchase included the assumption of $12.0 million in debt and the issuance of 412,174 Operating Partnership units valued at $3.7 million. The Company funded the remainder of the acquisition with proceeds from its September 19, 2013 common stock offering and borrowings under its senior secured revolving credit facility.
The unaudited consolidated balance sheet for the Company at September 30, 2013 is presented as if the acquisition of the Houston Hilton Garden Inn and the SoCal Hampton Portfolio occurred on September 30, 2013.
The unaudited pro forma consolidated statements of operations for the Company for the nine months ended September 30, 2013 and the year ended December 31, 2012 are presented as if the January 14, 2013 and the September 19, 2013 common stock offerings and the acquisitions of the Hyatt 11 Portfolio, the New Orleans Marriott Portfolio, the White Lodging Portfolio, the Houston Hilton Garden Inn, and the SoCal Hampton Portfolio had been completed at the beginning of 2012.
The unaudited pro forma financial information is not necessarily indicative of what the Company’s results of operations would have been assuming the January 14, 2013 and the September 19, 2013 common stock offerings and the acquisitions of the Hyatt 11 Portfolio, the New Orleans Marriott Portfolio, the White Lodging Portfolio, the Houston Hilton Garden Inn, and the SoCal Hampton Portfolio had been completed at the beginning of 2012, nor is it indicative of the results of operations for future periods. The unaudited pro forma financial information reflects preliminary application of purchase accounting to the acquisitions. 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 acquisitions of the Hyatt 11 Portfolio, the New Orleans Marriott Portfolio, the White Lodging Portfolio, the Houston Hilton Garden Inn, and the SoCal Hampton 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, 2012 and Quarterly Report on Form 10-Q for the quarter ended September 30, 2013.
Summit Hotel Properties, Inc.
Unaudited Pro Forma Consolidated Balance Sheet
September 30, 2013
(in thousands)
|
Historical
Summit Hotel
Properties, Inc.
|
Acquisition of
Houston Hilton
Garden Inn (1)
|
Acquisition of
SoCal Hampton
Portfolio (2)
|
Pro Forma
Summit Hotel
Properties, Inc.
|
|||||||||||||
|
ASSETS
|
||||||||||||||||
|
Investment in hotel properties, net
|
$ | 1,082,395 | $ | 37,500 | $ | 58,800 | $ | 1,178,695 | ||||||||
|
Investment in hotel properties under development
|
20,549 | - | - | 20,549 | ||||||||||||
|
Land held for development
|
13,748 | - | - | 13,748 | ||||||||||||
|
Assets held for sale
|
33,463 | - | - | 33,463 | ||||||||||||
|
Cash and cash equivalents
|
45,474 | (21,341 | ) | (11,937 | ) | 12,196 | ||||||||||
|
Restricted cash
|
35,437 | 962 | 186 | 36,585 | ||||||||||||
|
Trade receivables
|
9,685 | 318 | 249 | 10,252 | ||||||||||||
|
Prepaid expenses and other
|
21,006 | 758 | 636 | 22,400 | ||||||||||||
|
Derivative financial instruments
|
98 | - | - | 98 | ||||||||||||
|
Deferred charges, net
|
9,543 | 564 | 172 | 10,279 | ||||||||||||
|
Deferred tax asset
|
4,962 | - | - | 4,962 | ||||||||||||
|
Other assets
|
3,442 | - | - | 3,442 | ||||||||||||
|
TOTAL ASSETS
|
$ | 1,279,802 | $ | 18,761 | $ | 48,106 | $ | 1,346,669 | ||||||||
|
LIABILITIES AND EQUITY
|
||||||||||||||||
|
LIABILITIES
|
||||||||||||||||
|
Debt
|
$ | 400,255 | $ | 17,953 | $ | 43,465 | $ | 461,673 | ||||||||
|
Accounts payable
|
9,276 | 27 | 456 | 9,759 | ||||||||||||
|
Accrued expenses
|
30,767 | 892 | 1,006 | 32,665 | ||||||||||||
|
Derivative financial instruments
|
2,047 | - | 2,047 | |||||||||||||
|
TOTAL LIABILITIES
|
442,345 | 18,872 | 44,927 | 506,144 | ||||||||||||
|
COMMITMENTS AND CONTINGENCIES
|
||||||||||||||||
|
EQUITY
|
||||||||||||||||
|
Preferred stock, $.01 par value per share, 100,000,000 shares authorized:
|
||||||||||||||||
|
9.25% Series A - 2,000,000 shares issued and outstanding
|
||||||||||||||||
|
(liquidation preference of $50,385)
|
20 | - | - | 20 | ||||||||||||
|
7.875% Series B - 3,000,000 shares issued and outstanding
|
||||||||||||||||
|
(liquidation preference of $75,492)
|
30 | - | - | 30 | ||||||||||||
|
7.125% Series C - 3,400,000 shares issued and outstanding
|
||||||||||||||||
|
(liquidation preference of $85,505)
|
34 | - | - | 34 | ||||||||||||
|
Common stock, $.01 par value per share, 450,000,000 shares authorized,
|
||||||||||||||||
|
83,451,814 shares issued and outstanding
|
835 | - | - | 835 | ||||||||||||
|
Additional paid-in capital
|
867,308 | - | - | 867,308 | ||||||||||||
|
Accumulated other comprehensive income (loss)
|
(1,781 | ) | - | - | (1,781 | ) | ||||||||||
|
Accumulated deficit and distributions
|
(56,963 | ) | (106 | ) | (484 | ) | (57,553 | ) | ||||||||
|
Total stockholders' equity
|
809,483 | (106 | ) | (484 | ) | 808,893 | ||||||||||
|
Noncontrolling interests in Operating Partnership
|
20,150 | (5 | ) | 3,663 | 23,808 | |||||||||||
|
Noncontrolling interests in joint venture
|
7,824 | - | - | 7,824 | ||||||||||||
|
TOTAL EQUITY
|
837,457 | (111 | ) | 3,179 | 840,525 | |||||||||||
|
TOTAL LIABILITIES AND EQUITY
|
$ | 1,279,802 | $ | 18,761 | $ | 48,106 | $ | 1,346,669 | ||||||||
See Notes to Unaudited Pro Forma Financial Information
Summit Hotel Properties, Inc.
Unaudited Pro Forma Consolidated Statement of Operations
For the Nine Months Ended September 30, 2013
(in thousands, except per share)
|
Historical
Summit Hotel
Properties, Inc.
|
Historical Hyatt
3 Portfolio (3)
|
Historical New
Orleans Marriott
Portfolio (4)
|
Historical White
Lodging Portfolio
(5)
|
Historical
Houston Hilton
Garden Inn (6)
|
Historical SoCal
Hampton
Portfolio (7)
|
Pro Forma
Adjustments
|
Pro Forma
Summit Hotel
Properties, Inc.
|
|||||||||||||||||||||||||
|
REVENUES
|
||||||||||||||||||||||||||||||||
|
Room revenue
|
$ | 209,774 | $ | 560 | $ | 7,013 | $ | 10,723 | $ | 6,374 | $ | 9,379 | $ | - | $ | 243,823 | ||||||||||||||||
|
Other hotel operations revenue
|
11,228 | 35 | 499 | 489 | 723 | 144 | - | 13,118 | ||||||||||||||||||||||||
|
Total revenues
|
221,002 | 595 | 7,512 | 11,212 | 7,097 | 9,523 | - | 256,941 | ||||||||||||||||||||||||
|
EXPENSES
|
||||||||||||||||||||||||||||||||
|
Hotel operating expenses
|
||||||||||||||||||||||||||||||||
|
Rooms
|
59,182 | 202 | 1,422 | 2,019 | 1,138 | 2,784 | - | 66,747 | ||||||||||||||||||||||||
|
Other direct
|
28,336 | 77 | 968 | 2,049 | 1,104 | 1,283 | - | 33,817 | ||||||||||||||||||||||||
|
Other indirect
|
56,171 | 202 | 2,170 | 2,290 | 2,130 | 1,861 | 78 | (8) | 64,902 | |||||||||||||||||||||||
|
Other
|
543 | 1 | 11 | 52 | 558 | 42 | - | 1,207 | ||||||||||||||||||||||||
|
Total hotel operating expenses
|
144,232 | 482 | 4,571 | 6,410 | 4,930 | 5,970 | 78 | 166,673 | ||||||||||||||||||||||||
|
Depreciation and amortization
|
37,623 | 203 | 563 | 2,053 | 635 | 1,241 | 1,511 | (9) | 43,829 | |||||||||||||||||||||||
|
Corporate general and administrative:
|
||||||||||||||||||||||||||||||||
|
Salaries and other compensation
|
6,589 | - | - | - | - | - | - | 6,589 | ||||||||||||||||||||||||
|
Other
|
3,456 | - | - | - | - | - | - | 3,456 | ||||||||||||||||||||||||
|
Hotel property acquisition costs
|
1,553 | - | - | - | - | - | (642 | ) (10) | 911 | |||||||||||||||||||||||
|
Loss on impairment of assets
|
1,369 | - | - | - | - | - | - | 1,369 | ||||||||||||||||||||||||
|
Total expenses
|
194,822 | 685 | 5,134 | 8,463 | 5,565 | 7,211 | 947 | 222,827 | ||||||||||||||||||||||||
|
Income (loss) from operations
|
26,180 | (90 | ) | 2,378 | 2,749 | 1,532 | 2,312 | (947 | ) | 34,114 | ||||||||||||||||||||||
|
OTHER INCOME (EXPENSE)
|
||||||||||||||||||||||||||||||||
|
Interest income
|
52 | - | - | - | - | - | - | 52 | ||||||||||||||||||||||||
|
Other income (expense)
|
120 | - | - | - | - | - | - | 120 | ||||||||||||||||||||||||
|
Interest expense
|
(14,877 | ) | - | (793 | ) | (1,426 | ) | (851 | ) | (1,319 | ) | (1,925 | ) (11) | (21,191 | ) | |||||||||||||||||
|
Debt transaction costs
|
(112 | ) | - | - | - | - | - | (112 | ) | |||||||||||||||||||||||
|
Gain (loss) on disposal of assets
|
11 | - | - | - | - | - | 11 | |||||||||||||||||||||||||
|
Gain (loss) on derivative financial instruments
|
2 | - | - | - | - | - | - | 2 | ||||||||||||||||||||||||
|
Total other income (expense)
|
(14,804 | ) | - | (793 | ) | (1,426 | ) | (851 | ) | (1,319 | ) | (1,925 | ) | (21,118 | ) | |||||||||||||||||
|
Income (loss) from continuing operation before income tax
|
11,376 | (90 | ) | 1,585 | 1,323 | 681 | 993 | (2,872 | ) | 12,996 | ||||||||||||||||||||||
|
Income tax (expense) benefit
|
894 | - | - | - | - | - | - | 894 | ||||||||||||||||||||||||
|
Income (loss) from continuing operations
|
12,270 | (90 | ) | 1,585 | 1,323 | 681 | 993 | (2,872 | ) | 13,890 | ||||||||||||||||||||||
|
Net income (loss) from continuing operations attributable to
|
||||||||||||||||||||||||||||||||
|
noncontrolling interest
|
||||||||||||||||||||||||||||||||
|
Operating Partnership
|
80 | - | - | - | - | - | 71 | (12) | 151 | |||||||||||||||||||||||
|
Joint venture
|
324 | - | - | - | - | - | - | 324 | ||||||||||||||||||||||||
|
Net income (loss) from continuing operations attributable to
|
||||||||||||||||||||||||||||||||
|
Summit Hotel Properties, Inc.
|
11,866 | (90 | ) | 1,585 | 1,323 | 681 | 993 | (2,943 | ) | 13,415 | ||||||||||||||||||||||
|
Preferred dividends
|
(10,443 | ) | - | - | - | - | - | - | (10,443 | ) | ||||||||||||||||||||||
|
Net income (loss) from continuing operations attributable to
|
||||||||||||||||||||||||||||||||
|
common stockholders
|
$ | 1,423 | $ | (90 | ) | $ | 1,585 | $ | 1,323 | $ | 681 | $ | 993 | $ | (2,943 | ) | $ | 2,972 | ||||||||||||||
|
WEIGHTED AVERGE COMMON SHARES OUTSTANDING
|
||||||||||||||||||||||||||||||||
|
Basic
|
65,460 | 17,313 | (13) | 82,773 | ||||||||||||||||||||||||||||
|
Diluted
|
65,854 | 17,313 | (13) | 83,167 | ||||||||||||||||||||||||||||
|
EARNINGS PER SHARE
|
||||||||||||||||||||||||||||||||
|
Basic and diluted net income (loss) per share from continuing
|
||||||||||||||||||||||||||||||||
|
operations
|
$ | 0.02 | $ | 0.04 | ||||||||||||||||||||||||||||
See Notes to Unaudited Pro Forma Financial Information
Summit Hotel Properties, Inc.
Unaudited Pro Forma Consolidated Statement of Operations
For the Year Ended December 31, 2012
(in thousands, except per share)
|
Historical
Summit Hotel
Properties, Inc.
|
Historical Hyatt
11 Portfolio (3)
|
Historical New
Orleans Marriott
Portfolio (4)
|
Historical White
Lodging Portfolio
(5)
|
Historical
Houston Hilton
Garden Inn (6)
|
Historical SoCal
Hampton
Portfolio (7)
|
Pro Forma
Adjustments
|
Pro Forma
Summit Hotel
Properties, Inc.
|
|||||||||||||||||||||||||
|
REVENUES
|
||||||||||||||||||||||||||||||||
|
Room revenue
|
$ | 181,598 | $ | 33,300 | $ | 30,076 | $ | 24,487 | $ | 7,555 | $ | 11,950 | $ | - | $ | 288,966 | ||||||||||||||||
|
Other hotel operations revenue
|
7,944 | 112 | 2,442 | 1,157 | 981 | 229 | - | 12,865 | ||||||||||||||||||||||||
|
Total revenues
|
189,542 | 33,412 | 32,518 | 25,644 | 8,536 | 12,179 | - | 301,831 | ||||||||||||||||||||||||
|
EXPENSES
|
||||||||||||||||||||||||||||||||
|
Hotel operating expenses
|
||||||||||||||||||||||||||||||||
|
Rooms
|
54,083 | 10,191 | 6,394 | 4,748 | 1,526 | 3,489 | - | 80,431 | ||||||||||||||||||||||||
|
Other direct
|
25,125 | 3,883 | 4,354 | 4,496 | 1,495 | 1,755 | - | 41,108 | ||||||||||||||||||||||||
|
Other indirect
|
51,062 | 10,157 | 9,762 | 4,999 | 2,477 | 2,245 | (597 | ) (8) | 80,105 | |||||||||||||||||||||||
|
Other
|
911 | 55 | 50 | 98 | 491 | 63 | - | 1,668 | ||||||||||||||||||||||||
|
Total hotel operating expenses
|
131,181 | 24,286 | 20,560 | 14,341 | 5,989 | 7,552 | (597 | ) | 203,312 | |||||||||||||||||||||||
|
Depreciation and amortization
|
34,263 | 8,696 | 2,977 | 5,181 | 721 | 1,922 | 4,352 | (9) | 58,112 | |||||||||||||||||||||||
|
Corporate general and administrative:
|
||||||||||||||||||||||||||||||||
|
Salaries and other compensation
|
6,039 | - | - | - | - | - | - | 6,039 | ||||||||||||||||||||||||
|
Other
|
3,534 | - | - | - | - | - | - | 3,534 | ||||||||||||||||||||||||
|
Hotel property acquisition costs
|
3,050 | - | - | - | - | - | (304 | ) (10) | 2,746 | |||||||||||||||||||||||
|
Loss on impairment of assets
|
660 | - | - | - | - | - | - | 660 | ||||||||||||||||||||||||
|
Total expenses
|
178,727 | 32,982 | 23,537 | 19,522 | 6,710 | 9,474 | 3,451 | 274,403 | ||||||||||||||||||||||||
|
Income (loss) from operations
|
10,815 | 430 | 8,981 | 6,122 | 1,826 | 2,705 | (3,451 | ) | 27,428 | |||||||||||||||||||||||
|
OTHER INCOME (EXPENSE)
|
||||||||||||||||||||||||||||||||
|
Interest income
|
35 | - | - | - | - | - | - | 35 | ||||||||||||||||||||||||
|
Other income
|
731 | - | - | - | - | - | - | 731 | ||||||||||||||||||||||||
|
Interest expense
|
(15,585 | ) | - | (4,194 | ) | (3,740 | ) | (1,147 | ) | (1,727 | ) | 1,806 | (11) | (24,587 | ) | |||||||||||||||||
|
Debt transaction costs
|
(661 | ) | - | - | - | - | - | - | (661 | ) | ||||||||||||||||||||||
|
Gain (loss) on disposal of assets
|
(198 | ) | (128 | ) | - | - | - | - | - | (326 | ) | |||||||||||||||||||||
|
Gain (loss) on derivative financial instruments
|
(2 | ) | - | - | - | - | - | - | (2 | ) | ||||||||||||||||||||||
|
Total other income (expense)
|
(15,680 | ) | (128 | ) | (4,194 | ) | (3,740 | ) | (1,147 | ) | (1,727 | ) | 1,806 | (24,810 | ) | |||||||||||||||||
|
Income (loss) from continuing operations before income tax
|
(4,865 | ) | 302 | 4,787 | 2,382 | 679 | 978 | (1,645 | ) | 2,618 | ||||||||||||||||||||||
|
Income tax (expense) benefit
|
1,238 | - | - | - | - | - | - | 1,238 | ||||||||||||||||||||||||
|
Income (loss) from continuing operations
|
(3,627 | ) | 302 | 4,787 | 2,382 | 679 | 978 | (1,645 | ) | 3,856 | ||||||||||||||||||||||
|
Income (loss) from continuing operations attributable to
|
||||||||||||||||||||||||||||||||
|
noncontrolling interests
|
(1,429 | ) | - | - | - | - | - | 1,292 | (12) | (137 | ) | |||||||||||||||||||||
|
Income (loss) from continuing operations attributable to
|
||||||||||||||||||||||||||||||||
|
Summit Hotel Properties, Inc.
|
(2,198 | ) | 302 | 4,787 | 2,382 | 679 | 978 | (2,937 | ) | 3,993 | ||||||||||||||||||||||
|
Preferred dividends
|
(4,625 | ) | - | - | - | - | - | - | (4,625 | ) | ||||||||||||||||||||||
|
Income (loss) from continuing operations attributable to
|
||||||||||||||||||||||||||||||||
|
common stockholders
|
$ | (6,823 | ) | $ | 302 | $ | 4,787 | $ | 2,382 | $ | 679 | $ | 978 | $ | (2,937 | ) | $ | (632 | ) | |||||||||||||
|
WEIGHTED AVERGE COMMON SHARES OUTSTANDING
|
||||||||||||||||||||||||||||||||
|
Basic
|
33,717 | 34,500 | (13) | 68,217 | ||||||||||||||||||||||||||||
|
Diluted
|
33,849 | 34,500 | (13) | 68,349 | ||||||||||||||||||||||||||||
|
EARNINGS PER SHARE
|
||||||||||||||||||||||||||||||||
|
Basic and diluted net income (loss) per share from continuing
|
||||||||||||||||||||||||||||||||
|
operations
|
$ | (0.20 | ) | $ | (0.01 | ) | ||||||||||||||||||||||||||
See Notes to Unaudited Pro Forma Financial Information
Summit Hotel Properties, Inc.
Notes to Unaudited Pro Forma Financial Information
(dollars in thousands)
|
(1)
|
Reflects the acquisition of the 182 guestroom Houston Hilton Garden Inn as if it occurred on September 30, 2013 for a purchase price of $37.5 million, funded with $18.0 million of assumed term debt and proceeds from the Company’s September 19, 2013 common stock offering.
|
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 Houston Hilton Garden Inn, 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
|
Net Cash Disbursed
|
|||||||||
|
Land
|
$ | - |
Purchase price
|
$ | 37,500 | |||||
|
Hotel buildings and improvements
|
37,100 |
Acquisition costs
|
111 | |||||||
|
Furniture, fixtures and equipment
|
400 |
Net working capital
|
3,241 | |||||||
|
Total purchase price
|
37,500 | $ | 40,852 | |||||||
|
Cash and restricted cash acquired
|
2,520 | |||||||||
|
Other assets
|
1,640 |
Assumed term debt
|
$ | 17,953 | ||||||
|
Total assets acquired
|
41,660 |
Cash
|
22,899 | |||||||
|
Assumed debt
|
17,953 | $ | 40,852 | |||||||
|
Other liabilities
|
919 | |||||||||
|
Net assets acquired
|
$ | 22,788 | ||||||||
|
(2)
|
Reflects the acquisition of the SoCal Hampton Portfolio as if it occurred on September 30, 2013 for a purchase price of $58.8 million, funded with $12.0 million in assumed term debt, $3.7 million in Operating Partnership common units, $15.0 million in proceeds from the Company’s September 19, 2013 common stock offering, and borrowings under the Company’s senior secured revolving credit facility.
|
The following is a summary of the SoCal Portfolio.
|
Purchase Date
|
Brand
|
Location
|
Number of
Guestrooms
|
||||
|
October 1, 2013
|
Hampton Inn & Suites
|
Ventura (Camarillo), CA
|
115
|
||||
|
October 8, 2013
|
Hampton Inn & Suites
|
San Diego (Poway), CA
|
108
|
||||
|
January 10, 2014
|
Hampton Inn
|
Santa Barbara, (Goleta), CA
|
98
|
||||
|
321
|
|||||||
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 SoCal Hampton 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
|
Net Cash Disbursed
|
|||||||||
|
Land
|
$ | 8,600 |
Purchase price
|
$ | 58,800 | |||||
|
Hotel buildings and improvements
|
49,400 |
Acquisition costs
|
506 | |||||||
|
Furniture, fixtures and equipment
|
800 |
Net working capital
|
844 | |||||||
|
Total purchase price
|
58,800 | $ | 60,150 | |||||||
|
Cash and restricted cash acquired
|
1,249 |
Assumed term debt
|
$ | 12,112 | ||||||
|
Other assets
|
1,057 |
Operating Partnership common units
|
3,685 | |||||||
|
Total assets acquired
|
61,106 |
Cash
|
13,000 | |||||||
|
Assumed term debt
|
12,112 |
Borrowings under senior unsecured
|
||||||||
|
Other liabilities
|
1,462 |
credit facility
|
31,353 | |||||||
|
Net assets acquired
|
$ | 47,532 | $ | 60,150 | ||||||
Summit Hotel Properties, Inc.
Notes to Unaudited Pro Forma Financial Information
(dollars in thousands)
|
(3)
|
For the nine months ended September 30, 2013, the Historical Hyatt 3 Portfolio column reflects the operating results of the Hyatt 3 Portfolio from January 1 until January 22, 2013, the date of acquisition. For the period from the date of acquisition through September 30, 2013, the operating results of the Hyatt 3 Portfolio are included in the Historical Summit Hotel Properties, Inc. column. The operating results of the Hyatt 8 are included in the Historical Summit Hotel Properties, Inc. column for the full nine months ended September 30, 2013.
|
For the year ended December 31, 2012, the Historical Hyatt 11 Portfolio column reflects the operating results of the Hyatt 8 Portfolio from January 1 until October 5, 2012, the date of acquisition, and the Hyatt 3 Portfolio for the full year ended December 31, 2012. For the period from the date of acquisition of the Hyatt 8 Portfolio through December 31, 2012, the operating results of the Hyatt 8 Portfolio are included in the Historical Summit Hotel Properties, Inc. column.
|
(4)
|
For the nine months ended September 30, 2013, the Historical New Orleans Marriott Portfolio column reflects the operating results of the New Orleans Marriott Portfolio from January 1 until March 11, 2013, the date of acquisition. For the period from the date of acquisition through September 30, 2013, the operating results of the New Orleans Marriott Portfolio are included in the Historical Summit Hotel Properties, Inc. column.
|
For the year ended December 31, 2012, the Historical New Orleans Marriott Portfolio column reflects the operating results of the New Orleans Marriott Portfolio for the full year ended December 31, 2012.
|
(5)
|
For the nine months ended September 30, 2013, the Historical White Lodging Portfolio column reflects the operation results of the White Lodging Portfolio from January 1 until May 23, 2013, the date of acquisition. For the period from the date of acquisition through September 30, 2013, the operating results of the White Lodging Portfolio are included in the Historical Summit Hotel Properties, Inc. column.
|
For the year ended December 31, 2012, the Historical White Lodging Portfolio column reflects the operating results of the White Lodging Portfolio for the full year ended December 31, 2012.
|
(6)
|
For the nine months ended September 30, 2013 and the year ended December 31, 2012, the Historical Houston Hilton Garden Inn column reflects the operation results of the Houston Hilton Garden Inn for the full period presented.
|
|
(7)
|
For the nine months ended September 30, 2013 and the year ended December 31, 2012, the Historical SoCal Hampton Portfolio column reflects the operation results of the SoCal Hampton Portfolio for the full period presented.
|
|
(8)
|
Reflects adjustment to management and franchise fees for i) the difference between historical management and franchise fees of the Hyatt 11 Portfolio and the fees the Company has contracted to pay, ii) the difference between historical franchise fees of the White Lodging Portfolio and the fees the Company has contracted to pay, and iii) the difference between the historical management fees of the Houston Hilton Garden Inn and the fees the Company has contracted to pay.
|
|
(9)
|
Reflects adjustment to depreciation resulting from the change in basis of assets acquired in the Hyatt 11 Portfolio, the New Orleans Marriott Portfolio, the White Lodging Portfolio, the Houston Hilton Garden Inn, and the SoCal Hampton Portfolio. The new basis is depreciated using a straight-line method over 22 to 40 years for hotel buildings and improvements and 1 to 15 years for furniture, fixtures and equipment.
|
Summit Hotel Properties, Inc.
Notes to Unaudited Pro Forma Financial Information
(dollars in thousands)
|
(10)
|
Reflects the removal of acquisition costs related to the Hyatt 11 Portfolio, the New Orleans Marriott Portfolio, the White Lodging Portfolio, the Houston Hilton Garden Inn, and the SoCal Hampton Portfolio.
|
|
(11)
|
Reflects adjustment to interest expense resulting from i) the elimination of the historical debt on the New Orleans Marriott Portfolio, the White Lodging Portfolio, and a portion of the SoCal Hampton Portfolio ii) new term debt related to a portion of the White Lodging Portfolio, and iii) the net change in borrowings under the Company’s senior secured revolving credit facility related to the second and third follow-on common stock offerings and the acquisitions of the New Orleans Marriott Portfolio, the White Lodging Portfolio, the Houston Hilton Garden Inn, and the SoCal Hampton Portfolio.
|
|
(12)
|
Reflects the allocation of earnings from the acquired portfolios and the pro forma adjustments to noncontrolling interest.
|
|
(13)
|
Reflects the issuance of a total of 34,500,000 shares of common stock by the Company related to January 14, 2013 and the September 19, 2013 common stock offerings as if they had occurred on January 1, 2012.
|