SIOUX FALLS, SOUTH DAKOTA Summit Hotel Properties Inc. has raised US$253.5 million from the sale of 26 million shares of common stock, its initial public offering on the New York Stock Exchange.
The South Dakota-based lodging REIT priced its shares at US$9.75; it had originally planned to sell 23 million shares for between US$10.50 and US$12.50. Shares rose slightly in their NYSE debut today, gaining 10 cents in early trading under the symbol INN.
Underwriters Deutsche Bank Securities, Baird and RBC Capital Markets have a 30-day option to purchase up to an additional 3.9 million shares at the public offering price, less the underwriting discount, to cover over-allotments. Summit expects to raise additional proceeds through a private placement to an affiliate of IHG on the terms described in the prospectus.
Summit will contribute the net proceeds of the offering and concurrent private placement to its operating partnership, which will use proceeds to pay down debt and to fund capital improvements at the hotels, and for general corporate and working capital purposes.
Summit, which owns 65 hotels with 6,533 guestrooms in 19 U.S. states, is focused on acquiring and owning premium-branded select-service hotels in the upscale and midscale-without-F&B segments of the U.S. lodging industry.