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In order to expand its footprints in La., Summit Hotel Properties, Inc. (INN - Snapshot Report) recently penned a deal with Marriott International, Inc. (MAR - Analyst Report) to acquire a portfolio of five La.-based hotels of the company for $135 million. The deal is expected to be closed in the first quarter of this year, subject to customary closing conditions.

Summit Hotel intends to spend around $5.0 million for renovations of the La. portfolio over the coming twelve months. Post-renovation, the company expects to generate EBITDA (Earnings before Interest, Taxes, Depreciation and Amortization) multiple for the portfolio in the range of 10.5x to 11.5x over the next 12 months, based on the current EBITDA estimate.

The abovementioned portfolio, which comprises 5 hotels having a total of 823 rooms, includes Courtyard by Marriott and Residence Inn by Marriott in Metairie, Courtyard by Marriott and SpringHills Suites by Marriott near the New Orleans Convention Center as well as Courtyard by Marriott near the French Quarter. Summit Hotel plans to ink deals with affiliates of Marriott to operate all these hotels.

The hotels are located in close proximity to important business centers of the state and will allow the company to have access to several diverse markets and sub-markets in the area. We expect the strategic location of the properties to be a major revenue driver for the company and this will likely boost its top-line growth as well. Notably, Summit Hotel has four properties in La. – Double Tree, Fairfield Inn & Suites, SpringHill Suites and TownePlace Suites.

The aforesaid acquisition also depicts Summit Hotel’s robust expansion strategy, which it is diligently following since the last few quarters. The company’s noteworthy buyouts include the purchase of three hotels in Utah, N.Y. and Fla. for $71.8 million and the acquisition of a portfolio of three Hyatt hotels located in Fla. and Ill. for $36.1 million.

Summit Hotel, a real estate investment trust (REIT), acquires and owns premium-branded hotels in the upscale and upper mid-scale segments of the lodging industry. As of Jan 28, 2013, the company’s portfolio comprised 86 hotels located across 21 states.

Summit Hotel currently holds a Zacks Rank #4 (Sell). Two of Summit’s peers,  DiamondRock Hospitality Co. (DRH - Snapshot Report) and Brandywine Realty Trust (BDN - Snapshot Report), are performing impressively and are currently holding Zacks Rank #1 (Strong Buy) and Rank #2 (Buy), respectively.

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