Back to top

Analyst Blog

Zacks Equity Research

Summit Hotel Acquires Assets


 ZacksTrade Now

This page is temporarily not available.  Please check later as it should be available shortly. If you have any questions, please email customer support at or call 800-767-3771 ext.  9339.

Summit Hotel Properties, Inc. (INN - Snapshot Report), a real estate investment trust (REIT), recently acquired a portfolio of eight Hyatt hotels spread across diverse locations for $87.4 million. The portfolio comprising 1,043 guest rooms was purchased from the affiliates of Hyatt Hotels Corporation (H - Snapshot Report). The acquisition was partially funded from a just-concluded secondary offering

Recently in October 2012, Summit Hotels announced the pricing of 12 million shares at $8.15 each to enhance its liquidity. In this offering, the underwriters fully exercised an option to purchase up to an additional 1.8 million shares. The offering size was increased by 20% to 12 million shares and the total number of shares eventually sold was 13.8 million.

Through this strategic initiative, the company expects to enhance the quality of its portfolio and expects it to be accretive to earnings going forward. At the end of the second quarter 2012, the company had $11.6 million in cash and cash equivalents. For the twelve-month period ended June 30, 2012, the hotels in the Hyatt Portfolio had occupancy of 74.0%, at an average daily rate (ADR) of $96.42 and revenue per available room (RevPAR) of $71.35.

Summit Hotel is focused on the acquisition and ownership of premium-branded hotels in the upscale and upper mid-scale segments of the lodging industry. Presently, the company’s hotel portfolio consists of 81 hotels with a total of 8,576 guestrooms located in 21 states.

Summit Hotel currently retains a Zacks #5 Rank, which translates into a short-term Strong Sell rating. We also have a long-term Neutral recommendation on the stock. One of its competitors, Host Hotels & Resorts Inc (HST - Analyst Report) holds a Zacks #2 Rank, which translates into a short term Buy rating.

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

Learn more

Start for as little as $4.50 per trade.

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
BITAUTO HOLD BITA 35.33 +14.82%
ANI PHARMACE ANIP 24.79 +14.66%
E HOUSECHINA EJ 10.99 +9.24%
CANADIAN SOL CSIQ 26.97 +7.15%