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SUMMIT HOTEL PROPERTIES REPORTS FOURTH QUARTER AND FULL YEAR 2024 RESULTS

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Summit Hotel Properties (NYSE: INN) reported its Q4 and full-year 2024 results, showing improved performance with full-year operating income reaching $103.5 million. The company's Adjusted FFO increased 5.6% to $0.96 per share in 2024, while Adjusted EBITDAre grew to $192.2 million.

In Q4 2024, the company completed significant acquisitions through its joint venture with GIC, including the Hampton Inn Boston-Logan Airport and Hilton Garden Inn Tysons Corner for $96 million, representing an 8.8% net capitalization rate. The company's pro forma RevPAR increased 1.8% to $124.13 for the full year 2024.

The company completed over $200 million in transaction activity in 2024, including selling five hotels for nearly $112 million. As of December 31, 2024, Summit had outstanding debt of $1.1 billion with a weighted average interest rate of 4.55% and total liquidity of approximately $350 million.

Summit Hotel Properties (NYSE: INN) ha riportato i risultati del quarto trimestre e dell'intero anno 2024, mostrando un miglioramento delle performance con un reddito operativo annuale che ha raggiunto i 103,5 milioni di dollari. L'FFO rettificato dell'azienda è aumentato del 5,6% a 0,96 dollari per azione nel 2024, mentre l'EBITDAre rettificato è cresciuto a 192,2 milioni di dollari.

Nel quarto trimestre del 2024, l'azienda ha completato acquisizioni significative attraverso la sua joint venture con GIC, inclusi l'Hampton Inn Boston-Logan Airport e il Hilton Garden Inn Tysons Corner per 96 milioni di dollari, rappresentando un tasso di capitalizzazione netto dell'8,8%. L'RevPAR pro forma dell'azienda è aumentato dell'1,8% a 124,13 dollari per l'intero anno 2024.

L'azienda ha completato oltre 200 milioni di dollari in attività di transazione nel 2024, inclusa la vendita di cinque hotel per quasi 112 milioni di dollari. Al 31 dicembre 2024, Summit aveva un debito in sospeso di 1,1 miliardi di dollari con un tasso d'interesse medio ponderato del 4,55% e una liquidità totale di circa 350 milioni di dollari.

Summit Hotel Properties (NYSE: INN) reportó sus resultados del cuarto trimestre y del año completo 2024, mostrando una mejora en el rendimiento con un ingreso operativo anual que alcanzó los 103,5 millones de dólares. El FFO Ajustado de la compañía aumentó un 5,6% a 0,96 dólares por acción en 2024, mientras que el EBITDAre Ajustado creció a 192,2 millones de dólares.

En el cuarto trimestre de 2024, la compañía completó adquisiciones significativas a través de su empresa conjunta con GIC, incluyendo el Hampton Inn Boston-Logan Airport y el Hilton Garden Inn Tysons Corner por 96 millones de dólares, representando una tasa de capitalización neta del 8,8%. El RevPAR pro forma de la compañía aumentó un 1,8% a 124,13 dólares para el año completo 2024.

La compañía completó más de 200 millones de dólares en actividad transaccional en 2024, incluyendo la venta de cinco hoteles por casi 112 millones de dólares. Al 31 de diciembre de 2024, Summit tenía una deuda pendiente de 1,1 mil millones de dólares con una tasa de interés promedio ponderada del 4,55% y una liquidez total de aproximadamente 350 millones de dólares.

서밋 호텔 프로퍼티즈 (NYSE: INN)는 2024년 4분기 및 연간 결과를 보고하며, 운영 소득이 1억 3천5백만 달러에 달하는 개선된 성과를 보였습니다. 회사의 조정된 FFO는 5.6% 증가하여 주당 0.96달러에 달했습니다 2024년, 조정된 EBITDAre는 1억 9천2백2십만 달러로 성장했습니다.

2024년 4분기 동안, 회사는 GIC와의 합작 투자로 중요한 인수를 완료했으며, 여기에는 햄프턴 인 보스턴-로건 공항 및 힐튼 가든 인 타이슨스 코너가 포함되어 있으며, 총 9천6백만 달러에 해당하며, 순 자본화율은 8.8%입니다. 회사의 프로 포르마 RevPAR은 1.8% 증가하여 124.13달러에 달했습니다 2024년 전체에 대해.

회사는 2024년에 2억 달러 이상의 거래 활동을 완료했으며, 여기에는 5개의 호텔을 거의 1억 1천2백만 달러에 판매하는 것이 포함됩니다. 2024년 12월 31일 기준으로, 서밋은 11억 달러의 미지급 부채를 보유하고 있으며, 가중 평균 이자율은 4.55%이고 총 유동성은 약 3억5천만 달러입니다.

Summit Hotel Properties (NYSE: INN) a publié ses résultats du quatrième trimestre et de l'année 2024, montrant une amélioration des performances avec un revenu d'exploitation annuel atteignant 103,5 millions de dollars. Le FFO ajusté de la société a augmenté de 5,6 % pour atteindre 0,96 dollar par action en 2024, tandis que l'EBITDAre ajusté a atteint 192,2 millions de dollars.

Au quatrième trimestre 2024, la société a réalisé des acquisitions significatives par le biais de sa coentreprise avec GIC, y compris le Hampton Inn Boston-Logan Airport et le Hilton Garden Inn Tysons Corner pour 96 millions de dollars, représentant un taux de capitalisation nette de 8,8 %. Le RevPAR pro forma de la société a augmenté de 1,8 % pour atteindre 124,13 dollars pour l'année entière 2024.

La société a réalisé plus de 200 millions de dollars d'activités de transaction en 2024, y compris la vente de cinq hôtels pour près de 112 millions de dollars. Au 31 décembre 2024, Summit avait une dette en cours de 1,1 milliard de dollars avec un taux d'intérêt moyen pondéré de 4,55 % et une liquidité totale d'environ 350 millions de dollars.

Summit Hotel Properties (NYSE: INN) hat seine Ergebnisse für das 4. Quartal und das gesamte Jahr 2024 veröffentlicht, die eine verbesserte Leistung zeigen, wobei das Betriebsergebnis des gesamten Jahres 103,5 Millionen Dollar erreichte. Das bereinigte FFO des Unternehmens stieg um 5,6% auf 0,96 Dollar pro Aktie im Jahr 2024, während das bereinigte EBITDAre auf 192,2 Millionen Dollar anwuchs.

Im 4. Quartal 2024 hat das Unternehmen bedeutende Akquisitionen durch sein Joint Venture mit GIC abgeschlossen, darunter das Hampton Inn Boston-Logan Airport und das Hilton Garden Inn Tysons Corner für 96 Millionen Dollar, was einer Nettokapitalisierungsrate von 8,8% entspricht. Der pro forma RevPAR des Unternehmens stieg um 1,8% auf 124,13 Dollar für das gesamte Jahr 2024.

Das Unternehmen hat im Jahr 2024 Transaktionen im Wert von über 200 Millionen Dollar abgeschlossen, einschließlich des Verkaufs von fünf Hotels für fast 112 Millionen Dollar. Zum 31. Dezember 2024 hatte Summit eine ausstehende Schulden von 1,1 Milliarden Dollar mit einem gewichteten durchschnittlichen Zinssatz von 4,55% und einer Gesamtliquidität von etwa 350 Millionen Dollar.

Positive
  • Full-year Adjusted FFO increased 5.6% to $0.96 per share
  • Pro forma RevPAR grew 1.8% to $124.13 in 2024
  • Acquired two premium hotels at 8.8% capitalization rate
  • Net income improved from -$28.0M in 2023 to $25.1M in 2024
  • Reduced balance sheet leverage through strategic asset sales
Negative
  • Q4 pro forma hotel EBITDA decreased 2.8% to $60.4M
  • Q4 Adjusted EBITDAre declined to $42.1M from $46.4M
  • Q4 pro forma hotel EBITDA margin contracted 140 basis points
  • Q4 Adjusted FFO decreased to $0.20 per share from $0.22

Insights

Summit Hotel Properties' 2024 performance reflects successful execution of a strategic transformation focused on portfolio quality enhancement and operational efficiency. The 5.6% growth in AFFO to $0.96 per share demonstrates strong underlying fundamentals, particularly noteworthy given the challenging operating environment.

The company's capital recycling program has been especially impressive, with $150M in asset sales at sub-5% cap rates funding acquisitions yielding nearly 9%. This 400+ basis point spread represents significant value creation, while simultaneously improving portfolio quality - evidenced by the disposal of assets with 30% lower RevPAR than the current portfolio. The strategic focus on high-barrier markets through acquisitions like the Hampton Inn Boston-Logan and Hilton Garden Inn Tysons Corner positions the portfolio for stronger growth as urban markets continue their recovery.

Operational excellence is evident in the company's margin management. Despite industry-wide cost pressures, Summit maintained essentially flat pro forma hotel EBITDA margins at 35.6%, showcasing the effectiveness of their operating platform. The company's balance sheet remains well-positioned with 72% fixed-rate debt and substantial liquidity, providing flexibility for opportunistic growth while maintaining conservative leverage metrics.

Looking ahead to 2025, Summit's urban-focused portfolio and industry supply growth create favorable conditions for continued RevPAR expansion. The normalization of expense pressures observed through 2024 suggests potential for margin expansion as revenue growth accelerates, particularly in their core urban markets where rate growth typically outpaces inflationary pressures during recovery phases.

Full Year Operating Income Increases to $103.5 million

Full Year Adjusted EBITDAre Grows to $192.2 million; AFFO increases 5.6% to $0.96 per share

Completed Over $200 Million of Accretive Transaction Activity in 2024

AUSTIN, Texas, Feb. 24, 2025 /PRNewswire/ -- Summit Hotel Properties, Inc. (NYSE: INN) (the "Company"), today announced results for the three and twelve months ended December 31, 2024.

"We are pleased with our fourth quarter and full-year 2024 financial results, driven by pro forma RevPAR growth that exceeded industry average growth for the third consecutive year, effective expense management, and the continued success of our accretive capital recycling program. These efforts drove nearly six percent growth in Adjusted FFO in 2024. Despite a low RevPAR growth environment, pro forma hotel EBITDA margins remained essentially unchanged year-over-year, underscoring the strength of our best-in-class operating platform. During the fourth quarter, we closed on the acquisition of the Hampton Inn Boston-Logan Airport and the Hilton Garden Inn Tysons Corner for $96 million, which represents an 8.8 percent net capitalization rate on 2024 net operating income for the two hotels. This acquisition was facilitated by nearly $150 million of asset sales completed over the past 18 months for hotels with lower nominal RevPAR levels and meaningful upcoming capital requirements.  Combined, our recent transaction activity has been accretive to our financial results, reduced our balance sheet leverage, and enhanced both the quality and growth profile of our portfolio," said Jonathan P. Stanner, the Company's President and Chief Executive Officer.

"Our outlook for 2025 remains positive, supported by stable demand trends and anticipated growth in urban markets, which we expect to continue to drive our portfolio performance. Expense pressures normalized throughout 2024, and we are confident in our ability to continue managing operating costs effectively this year. Finally, with historically low industry supply growth and a stabilizing cost environment, our high-quality portfolio and strong operating platform position us well for a multi-year revenue and profitability growth cycle as demand strengthens," continued Mr. Stanner.

Fourth Quarter 2024 Summary

  • Net Income: Net income attributable to common stockholders was $0.7 million, or $0.01 per diluted share, compared to a net loss of $16.6 million, or $0.16 per diluted share, for the fourth quarter of 2023.
  • Pro forma RevPAR: Pro forma RevPAR increased 1.4 percent to $117.21 compared to the fourth quarter of 2023. Pro forma ADR increased 0.9 percent to $164.00 compared to the same period in 2023, and pro forma occupancy increased 0.5 percent to 71.5 percent.
  • Same Store RevPAR: Same store RevPAR increased 1.3 percent to $116.52 compared to the fourth quarter of 2023. Same store ADR increased 0.8 percent to $163.55, and same store occupancy increased 0.4 percent to 71.2 percent.
  • Pro Forma Hotel EBITDA(1): Pro forma hotel EBITDA decreased 2.8 percent to $60.4 million from $62.1 million in the same period in 2023. Pro forma hotel EBITDA margin contracted approximately 140 basis points to 34.1 percent. When adjusting for property tax increases year-over-year, which were primarily related to refunds received in 2023, pro forma hotel EBITDA margin contracted approximately 85 basis points.
  • Same Store Hotel EBITDA(1): Same store hotel EBITDA decreased 4.1 percent to $57.1 million from $59.5 million in the same period in 2023. Same store hotel EBITDA margin contracted approximately 187 basis points to 33.6 percent. When adjusting for property tax increases year-over-year, which were primarily related to refunds received in 2023, same store hotel EBITDA margin contracted approximately 125 basis points.
  • Adjusted EBITDAre(1): Adjusted EBITDAre decreased to $42.1 million from $46.4 million in the fourth quarter of 2023.
  • Adjusted FFO(1): Adjusted FFO decreased to $25.2 million, or $0.20 per diluted share, compared to $26.9 million, or $0.22 per diluted share, in the fourth quarter of 2023.

Full Year 2024 Summary

  • Net Income: Net income attributable to common stockholders was $25.1 million, or $0.22 per diluted share, compared to a net loss of $28.0 million, or $0.27 per diluted share, in the same period of 2023.
  • Pro forma RevPAR: Pro forma RevPAR increased 1.8 percent to $124.13 compared to the same period of 2023. Pro forma ADR increased 0.6 percent to $167.84, and pro forma occupancy increased 1.2 percent to 74.0 percent.
  • Same Store RevPAR: Same store RevPAR increased 1.7 percent to $123.34 compared to the same period of 2023. Same store ADR increased 0.4 percent to $167.30, and same store occupancy increased 1.2 percent to 73.7 percent.
  • Pro Forma Hotel EBITDA(1): Pro forma hotel EBITDA increased 2.0 percent to $264.7 million from $259.5 million, and pro forma hotel EBITDA margin contracted 7 basis points to 35.6 percent.
  • Same Store Hotel EBITDA(1): Same store hotel EBITDA increased 1.6 percent to $252.5 million from $248.6 million, and same store hotel EBITDA margin contracted 18 basis points to 35.5 percent.
  • Adjusted EBITDAre(1): Adjusted EBITDAre increased 1.1 percent to $192.2 million from $190.0 million in the same period of 2023.
  • Adjusted FFO(1): Adjusted FFO increased 5.6 percent to $119.2 million, or $0.96 per diluted share, compared to $112.9 million, or $0.92 per diluted share, in the same period of 2023.

The Company's results for the three and twelve months ended December 31, 2024 and 2023 are as follows (in thousands, except per share amounts and metrics):


For the Three Months Ended

December 31,


For the Twelve Months
Ended December 31,


2024


2023


2024


2023



Net income (loss) attributable to common stockholders

$                 680


$           (16,571)


$         25,141


$        (27,990)

Net income (loss) per diluted share

$                0.01


$               (0.16)


$             0.22


$            (0.27)

Total revenues

$          172,931


$          177,435


$       731,783


$       736,127

EBITDAre (1)

$            51,499


$            56,581


$       236,198


$       228,882

Adjusted EBITDAre (1)

$            42,131


$            46,384


$       192,192


$       190,022

FFO (1)

$            31,603


$            24,186


$       115,160


$         96,778

Adjusted FFO (1)

$            25,230


$            26,935


$       119,206


$       112,892

FFO per diluted share and unit (1) (2)

$                0.25


$                0.20


$             0.93


$             0.79

Adjusted FFO per diluted share and unit (1) (2)

$                0.20


$                0.22


$             0.96


$             0.92









Pro Forma (2)








RevPAR

$            117.21


$            115.62


$         124.13


$         121.93

RevPAR Growth

1.4 %




1.8 %



Hotel EBITDA

$            60,368


$            62,076


$       264,712


$       259,539

Hotel EBITDA Margin

34.1 %


35.5 %


35.6 %


35.7 %

Hotel EBITDA Margin Change

          (140) bps




           (7) bps











Same Store (3)








RevPAR

$            116.52


$            115.07


$         123.34


$         121.31

RevPAR Growth

1.3 %




1.7 %



Hotel EBITDA

$            57,067


$            59,529


$       252,456


$       248,559

Hotel EBITDA Margin

33.6 %


35.5 %


35.5 %


35.7 %

Hotel EBITDA Margin Change

          (187) bps




        (18) bps





(1)

See tables later in this press release for a discussion and reconciliation of net income (loss) to non-GAAP financial measures, including earnings before interest, taxes, depreciation, and amortization ("EBITDA"), EBITDAre, adjusted EBITDAre, funds from operations ("FFO"), FFO per diluted share and unit, adjusted FFO ("AFFO"), and AFFO per diluted share and unit, as well as a reconciliation of operating income to hotel EBITDA. See "Non-GAAP Financial Measures" at the end of this release.



(2)

Unless stated otherwise in this release, all pro forma information includes operating and financial results for 97 hotels owned as of December 31, 2024, as if each hotel had been owned by the Company since January 1, 2023 and remained open for the entirety of the reporting period. As a result, all pro forma information includes operating and financial results for hotels acquired since January 1, 2023, which may include periods prior to the Company's ownership. Pro forma and non-GAAP financial measures are unaudited.



(3)

All same store information includes operating and financial results for 93 hotels owned as of December 31, 2024, and at all times during the three and twelve months ended December 31, 2024, and 2023.



Acquisition Activity

During the fourth quarter 2024, the Company, through its joint venture with GIC, completed the acquisition of the 250-guestroom Hampton Inn Boston - Logan Airport and the 149-guestroom Hilton Garden Inn Tysons Corner for a combined purchase price of $96.0 million, or $241,000 per key. The purchase price represents an 8.8% capitalization rate based on 2024 net operating income and no meaningful capital expenditures are planned prior to the fourth quarter of 2026.  The two premium-branded hotels are located in high barrier-to-entry, gateway city submarkets and generate RevPAR, EBITDA margin and EBITDA per key metrics that are accretive to our existing portfolio.  The purchase price represents an attractive going-in yield and a significant discount to replacement cost.

The transaction was financed with a mix of cash on hand and a $50.0 million term loan raised in conjunction with exercising a portion of the accordion option on the GIC joint venture's existing $200.0 million credit facility. The term loan has an interest rate of SOFR + 210 basis points, and a fully extended maturity date of September 2028. The Company's $24.0 million of required equity for its 51% share of the transaction was funded primarily from the net sale proceeds from sale of the Four Points by Sheraton San Francisco Airport, which was completed in October 2024, as well as cash on hand.

Acquired Hotels (2023 & 2024)


Count


Keys


Date


Price (1)


Year 1
Capex (1)

Year 1
RevPAR (1)

Cap Rate (4)

Residence Inn Scottsdale North


1


120


June 2023


$  29,000


$      1,800

$          141

8.4 %

Nordic Lodge Steamboat Springs


1


46


June 2023


13,700


300

127

7.1 %

Hampton Inn Boston-Logan Airport & Hilton Garden Inn Tysons Corner


2


399


Dec 2024


96,000


N/A

145

8.8 %

Total


4


565




$ 138,700


$      2,100

$          143

8.5 %














Since 2023, the Company has acquired four hotels for $138.7 million through its joint venture with GIC at a blended capitalization rate of nearly nine percent, including near-term capital needs.

Disposition Activity

In 2024, the Company and its affiliates sold five hotels for a combined sales price of nearly $112 million. Since 2023, the Company and its affiliates have sold a total of 10 hotels for a combined sales price of nearly $150 million at a blended capitalization rate of less than 5%, inclusive of an estimated $47 million of foregone capital needs, based on the trailing twelve-month net operating income at the time of each sale. The combined RevPAR for the sold hotels was $85 which is an approximate 30% discount to the current pro forma portfolio. The Company's disposition activity has facilitated nearly a full turn reduction in its Net Debt to Adjusted EBITDAre leverage ratio, enhanced the quality and growth profile of the portfolio, significantly reduced near-term capital requirements, and enabled the acquisition of two high quality hotels.

Sold Hotels (2023 & 2024)


Count


Keys


Date


Price (1)


Capex (1)(2)


RevPAR (3)

Cap Rate (5)

Hyatt Place Chicago/Lombard


1


151


May 2023


$  10,500


$     5,700


$            76

4.7 %

Hyatt Place Chicago/Hoffman Estates


1


126


May 2023


3,000


7,200


68

0.4 %

Hilton Garden Inn Minneapolis/Eden Prairie


1


97


May 2023


8,200


4,300


81

3.1 %

Holiday Inn Express & Suites Minnetonka


1


93


May 2023


6,400


3,300


74

0.5 %

Hyatt Place Baltimore/Owings Mills


1


123


Dec 2023


8,250


5,200


69

2.7 %

Hyatt Place Dallas/Plano


1


127


Feb 2024


10,250


5,200


69

2.9 %

New Orleans (2) Convention Center


2


410


Apr 2024


73,000


10,250


111

7.1 %

Hilton Garden Inn College Station


1


119


Apr 2024


11,000


2,975


86

8.4 %

Four Points San Francisco Airport


1


101


Oct 2024


17,700


3,000


65

N/M (6)

Total


10


1,347




$ 148,300


$   47,125


$            85

4.6 %



(1)

In thousands. 

(2)

Reflects estimated near-term foregone capital expenditures for dispositions.

(3)

Reflects RevPAR for the twelve-month period immediately prior to sale.

(4)

Based on 2024 Net Operating Income.

(5)

Based on trailing twelve month Net Operating Income through the date of disposition.

(6)

The hotel's Net Operating Income at the time of sale was de minimis.



Capital Markets and Balance Sheet

On a pro rata basis as of December 31, 2024, the Company had the following outstanding indebtedness and liquidity available:

  • Outstanding debt of $1.1 billion with a weighted average interest rate of 4.55 percent. After giving effect to interest rate derivative agreements, $774.9 million, or 72 percent, of our outstanding debt had a fixed interest rate, and $302.9 million, or 28 percent, had a variable interest rate.
  • Unrestricted cash and cash equivalents of $32.5 million.
  • Total liquidity of approximately $350 million, including unrestricted cash and cash equivalents and revolving credit facility availability, which reflects a liquidity enhancement option available for the Company to exercise at its sole discretion.

Common and Preferred Dividend Declaration

On January 23, 2025, the Company declared a quarterly cash dividend of $0.08 per share on its common stock and per common unit of limited partnership interest in Summit Hotel OP, LP. The quarterly dividend of $0.08 per share represents an annualized dividend yield of 5.1 percent, based on the closing price of shares of the common stock on February 21, 2025.

In addition, the Board of Directors declared a quarterly cash dividend of:

  • $0.390625 per share on its 6.25% Series E Cumulative Redeemable Preferred Stock
  • $0.3671875 per share on its 5.875% Series F Cumulative Redeemable Preferred Stock
  • $0.328125 per unit on its 5.25% Series Z Cumulative Perpetual Preferred Units

The dividends are payable on February 28, 2025 to holders of record as of February 14, 2025.

2025 Outlook

The Company is providing its outlook for the full-year 2025 based on 97 lodging assets owned as of year-end 2024. There are no additional acquisitions, dispositions, or capital markets activities assumed in the Company's full year 2025 outlook.



FYE 2025 Outlook



Low


High

Pro Forma RevPAR Growth (1)


1.00 %


3.00 %

Adjusted EBITDAre


$        184,000


$        198,000

Adjusted FFO


$        111,900


$        125,600

Adjusted FFO per share of Common Stock and Common Units


$              0.90


$              1.00

Capital Expenditures, Pro Rata


$          65,000


$          85,000



(1)

All pro forma information includes operating and financial results for 97 lodging assets owned as of December 31, 2024, as if each property had been owned by the Company since January 1, 2024 and will continue to be owned through the entire year ending December 31, 2025. As a result, the pro forma information includes operating and financial results for lodging assets acquired since January 1, 2024, which may include periods prior to the Company's ownership. Pro forma and non-GAAP financial measures are unaudited.



Fourth Quarter 2024 Earnings Conference Call

The Company will conduct its quarterly conference call on February 25, 2025 at 9:00 AM ET.

  1. To access the conference call, please pre-register using this link. Registrants will receive a confirmation with dial-in details.

  2. A live webcast of the conference call can be accessed using this link. A replay of the webcast will be available in the Investors section of the Company's website, www.shpreit.com, until April 30, 2025.

Supplemental Disclosures

In conjunction with this press release, the Company has furnished a financial supplement with additional disclosures on its website. Visit www.shpreit.com for more information. The Company has no obligation to update any of the information provided to conform to actual results or changes in portfolio, capital structure, or future expectations.

About Summit Hotel Properties

Summit Hotel Properties, Inc. is a publicly traded real estate investment trust focused on owning premium-branded lodging facilities with efficient operating models primarily in the upscale segment of the lodging industry. As of February 24, 2025, the Company's portfolio consisted of 97 assets, 53 of which are wholly owned, with a total of 14,553 guestrooms located in 25 states.

For additional information, please visit the Company's website, www.shpreit.com, and follow on X at @SummitHotel_INN.

Forward-Looking Statements

This press release contains statements that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "may," "will," "should," "potential," "intend," "expect," "seek," "anticipate," "estimate," "approximately," "believe," "could," "project," "predict," "forecast," "continue," "plan," "likely," "would" or other similar words or expressions. Forward-looking statements are based on certain assumptions and can include future expectations, future plans and strategies, financial and operating projections, or other forward-looking information. Examples of forward-looking statements include the following: the Company's ability to realize growth from the deployment of renovation capital; projections of the Company's revenues and expenses, capital expenditures or other financial items; descriptions of the Company's plans or objectives for future operations, acquisitions, dispositions, financings, redemptions or services; forecasts of the Company's future financial performance and potential increases in average daily rate, occupancy, RevPAR, room supply and demand, EBITDAre, Adjusted EBITDAre, FFO and AFFO; the Company's outlook with respect to pro forma RevPAR, pro forma RevPAR growth, RevPAR, RevPAR growth, AFFO, AFFO per diluted share and unit and renovation capital deployed; and descriptions of assumptions underlying or relating to any of the foregoing expectations regarding the timing of their occurrence. These forward-looking statements are subject to various risks and uncertainties, not all of which are known to the Company and many of which are beyond the Company's control, which could cause actual results to differ materially from such statements. These risks and uncertainties include, but are not limited to, the state of the U.S. economy, supply and demand in the hotel industry, and other factors as are described in greater detail in the Company's filings with the Securities and Exchange Commission ("SEC"). Unless legally required, the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.

For information about the Company's business and financial results, please refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of the Company's Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC, and its quarterly and other periodic filings with the SEC. The Company undertakes no duty to update the statements in this release to conform the statements to actual results or changes in the Company's expectations.

Summit Hotel Properties, Inc.

Consolidated Balance Sheets

(In thousands)



December 31, 2024


December 31, 2023






ASSETS





Investments in lodging property, net


$                  2,746,340


$                   2,736,975

Investment in lodging property under development


7,617


1,451

Assets held for sale, net


1,650


65,736

Cash and cash equivalents


40,637


37,837

Restricted cash


7,721


9,931

Right-of-use assets, net


33,309


34,814

Trade receivables, net


18,625


21,348

Prepaid expenses and other


9,580


8,865

Deferred charges, net


6,460


6,659

Other assets


24,291


15,632

Total assets


$                  2,896,230


$                   2,939,248






LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS
AND EQUITY





Liabilities:





Debt, net of debt issuance costs


$                  1,396,710


$                   1,430,668

Lease liabilities, net


24,871


25,842

Accounts payable


7,450


4,827

Accrued expenses and other


82,153


81,215

Total liabilities


1,511,184


1,542,552






Redeemable non-controlling interests


50,219


50,219






Total stockholders' equity


909,545


911,195

Non-controlling interests


425,282


435,282

Total equity


1,334,827


1,346,477

Total liabilities, redeemable non-controlling interests and equity


$                  2,896,230


$                   2,939,248

 

Summit Hotel Properties, Inc.

Consolidated Statements of Operations

(In thousands, except per share amounts)



For the Three Months
Ended December 31,


For the Twelve Months
Ended December 31,



2024


2023


2024


2023



(Unaudited)





Revenues:









Room


$       152,849


$       157,081


$       650,713


$       656,063

Food and beverage


10,691


10,665


40,865


41,513

Other


9,391


9,689


40,205


38,551

Total revenues


172,931


177,435


731,783


736,127










Expenses:









Room


35,487


35,798


146,790


148,005

Food and beverage


7,834


7,901


30,964


31,580

Other lodging property operating expenses


54,348


55,121


224,409


224,901

Property taxes, insurance and other


13,294


11,859


54,116


55,167

Management fees


3,807


4,478


15,866


18,452

Depreciation and amortization


36,471


38,624


146,436


150,924

Corporate general and administrative


7,403


7,305


31,891


32,530

Transaction costs


—


(11)


10


13

Loss on impairment and write-down of assets


6,723


16,661


6,723


16,661

Recovery of credit losses


—


(730)


—


(1,230)

Total expenses


165,367


177,006


657,205


677,003

Gain (loss) on disposal of assets, net


473


(1)


28,912


(337)

Operating income


8,037


428


103,490


58,787

Other income (expense):









Interest expense


(19,792)


(21,621)


(82,632)


(86,798)

Interest income


433


498


1,906


1,688

Gain on extinguishment of debt


—


—


3,000


—

Other income, net


571


547


4,384


1,005

Total other expense, net


(18,788)


(20,576)


(73,342)


(84,105)

(Loss) income from continuing operations before income taxes


(10,751)


(20,148)


30,148


(25,318)

Income tax benefit (expense)


11,667


(1,119)


8,743


(2,798)

Net income (loss)


916


(21,267)


38,891


(28,116)

Less - Loss attributable to non-controlling interests


(4,389)


(9,321)


(4,751)


(18,627)

Net income (loss) attributable to Summit Hotel Properties, Inc. before preferred dividends


5,305


(11,946)


43,642


(9,489)

Less - Distributions to and accretion of redeemable non-controlling interests


(656)


(656)


(2,626)


(2,626)

Less - Preferred dividends


(3,969)


(3,969)


(15,875)


(15,875)

Net income (loss) attributable to common stockholders


$               680


$       (16,571)


$         25,141


$       (27,990)










Income (loss) per common share:









Basic


$              0.01


$            (0.16)


$              0.23


$            (0.27)

Diluted


$              0.01


$            (0.16)


$              0.22


$            (0.27)

Weighted-average common shares outstanding:









Basic


106,033


105,666


105,927


105,548

Diluted


107,027


105,666


132,365


105,548

 

Summit Hotel Properties, Inc.

Reconciliation of Net Income (Loss) to Non-GAAP Measures - Funds From Operations

(Unaudited)

(In thousands, except per share and unit amounts)



For the Three Months
Ended December 31,


For the Twelve Months
Ended December 31,



2024


2023


2024


2023

Net income (loss)


$               916


$       (21,267)


$         38,891


$       (28,116)

Preferred dividends


(3,969)


(3,969)


(15,875)


(15,875)

Distributions to and accretion of redeemable non-controlling interests


(656)


(656)


(2,626)


(2,626)

Loss related to non-controlling interests in consolidated joint ventures


4,488


6,731


8,499


14,824

Net income (loss) applicable to common shares and Common Units


779


(19,161)


28,889


(31,793)

Real estate-related depreciation


35,903


37,436


142,493


146,187

Loss on impairment and write-down of assets


6,723


16,661


6,723


16,661

(Gain) loss on disposal of assets and other dispositions, net


(473)


1


(28,912)


385

FFO adjustments related to non-controlling interests in consolidated joint ventures


(11,329)


(10,751)


(34,033)


(34,662)

FFO applicable to common shares and Common Units


31,603


24,186


115,160


96,778

Recoveries of credit losses


—


(730)


—


(1,230)

Amortization of deferred financing costs


1,702


1,531


6,582


5,910

Amortization of franchise fees


177


156


671


595

Amortization of intangible assets, net


266


909


2,786


3,642

Equity-based compensation


1,795


1,829


8,132


7,742

Transaction costs


—


(11)


10


13

Debt transaction costs


—


43


647


461

Gain on extinguishment of debt


—


—


(3,000)


—

Non-cash interest income


—


(134)


(400)


(531)

Non-cash lease expense, net


132


113


464


481

Casualty losses, net


814


261


177


2,112

Deferred tax expense


765


21


762


84

Reversal of valuation allowance on deferred tax assets


(12,061)


—


(12,061)


—

AFFO adjustments related to non-controlling interests in consolidated joint ventures


259


(981)


(1,468)


(3,612)

Non-cash state taxes and other, net


(222)


(258)


744


447

AFFO applicable to common shares and Common Units


$          25,230


$          26,935


$        119,206


$        112,892

FFO per share of common share/Common Unit


$              0.25


$              0.20


$              0.93


$              0.79

AFFO per common share/Common Unit


$              0.20


$              0.22


$              0.96


$              0.92

Weighted-average diluted common shares/Common Units:









FFO and AFFO (2)


124,502


122,486


124,313


122,355



(1)

Non-cash interest income relates to the amortization of the discount on a note receivable. The discount on the note receivable was recorded at inception of the related loan based on the estimated value of the embedded purchase option in the note receivable.



(2)

The Company includes the outstanding OP units issued by Summit Hotel OP, LP, the Company's operating partnership, held by limited partners other than the Company because the OP units are redeemable for cash or, at the Company's option, shares of the Company's common stock on a one-for-one basis.

 

Summit Hotel Properties, Inc.

Reconciliation of Weighted Average Diluted Common Shares

(Unaudited)

(In thousands)



For the Three Months
Ended December 31,


For the Twelve Months
Ended December 31,



2024


2023


2024


2023

Weighted average common shares outstanding - diluted


107,027


105,666


132,365


105,548

Adjusted for:









Non-GAAP adjustment for restricted stock awards (1)


1,532


862


1,780


837

Non-GAAP adjustment for dilutive effects of Common Units


15,943


15,958


15,946


15,970

Non-GAAP adjustment for dilutive effect of shares of common stock issuable upon conversion of convertible debt (2)


—


—


(25,778)


—

Non-GAAP weighted diluted share of common stock and Common Units


124,502


122,486


124,313


122,355



(1)

Adjustment reflects the difference between the total weighted-average unvested restricted time-based shares outstanding as of the reporting date and the weighted-average restricted time-based shares computed for diluted earnings per share under the treasury stock method in accordance with GAAP, plus the difference between the estimated total weighted average unvested restricted performance-based shares expected to vest based on achievement of the performance measures as if the vesting date were the reporting date and the estimated weighted-average unvested restricted performance-based shares computed for diluted earnings per share under the treasury stock method in accordance with GAAP.



(2)

The weighted-average shares of Common Stock and Common Units used to calculate FFO and AFFO per share of Common Stock and Common Unit for the three and twelve months ended December 31, 2024 and 2023 exclude the potential dilution related to our Convertible Notes as we intend to settle the principal value of the Convertible Notes in cash.

 

Summit Hotel Properties, Inc.

Reconciliation of Net Income (Loss) to Non-GAAP Measures - EBITDAre

(Unaudited)

(In thousands)



 For the Three Months
Ended December 31,


For the Twelve Months
Ended December 31,



2024


2023


2024


2023

Net income (loss)


$               916


$       (21,267)


$         38,891


$       (28,116)

Depreciation and amortization


36,471


38,624


146,436


150,924

Interest expense


19,792


21,621


82,632


86,798

Interest income on cash deposits


(263)


(178)


(829)


(568)

Income tax (benefit) expense


(11,667)


1,119


(8,743)


2,798

EBITDA


45,249


39,919


258,387


211,836

Loss on impairment and write-down of assets


6,723


16,661


6,723


16,661

(Gain) loss on disposal of assets and other dispositions, net


(473)


1


(28,912)


385

EBITDAre


51,499


56,581


236,198


228,882

Recoveries of credit losses


—


(730)


—


(1,230)

Amortization of key money liabilities


(124)


(120)


(486)


(498)

Equity-based compensation


1,795


1,829


8,132


7,742

Transaction costs


—


(11)


10


13

Debt transaction costs


—


43


647


461

Gain on extinguishment of debt


—


—


(3,000)


—

Non-cash interest income


—


(134)


(400)


(531)

Non-cash lease expense, net


132


113


464


481

Casualty losses, net


814


261


177


2,112

Loss related to non-controlling interests in consolidated joint ventures


4,488


6,731


8,499


14,824

Adjustments related to non-controlling interests in consolidated joint ventures


(16,251)


(17,921)


(58,793)


(62,681)

Non-cash state taxes and other, net


(222)


(258)


744


447

Adjusted EBITDAre


$         42,131


$         46,384


$       192,192


$       190,022



(1)

Non-cash interest income relates to the amortization of the discount on a note receivable. The discount on the note receivable was recorded at inception of the related loan based on the estimated fair value of the embedded purchase option in the note receivable.

 

Summit Hotel Properties, Inc.

Pro Forma Hotel Operating Data

(Unaudited)

(Dollars in thousands)



For the Three Months Ended

December 31,


For the Twelve Months Ended

December 31,

Pro Forma Operating Data: (1)


2024


2023


2024


2023

Pro forma room revenue


$       156,955


$       154,808


$       661,199


$       647,679

Pro forma other hotel operations revenue


20,299


20,246


81,523


79,193

Pro forma total revenues


177,254


175,054


742,722


726,872

Pro forma total hotel operating expenses


116,886


112,978


478,010


467,333

Pro forma hotel EBITDA


$         60,368


$         62,076


$       264,712


$       259,539

Pro forma hotel EBITDA Margin


34.1 %


35.5 %


35.6 %


35.7 %










Reconciliations of Non-GAAP financial measures to comparable GAAP financial measures


















Revenue:









Total revenues


$       172,931


$       177,435


$       731,783


$       736,127

Total revenues - acquisitions


4,586


5,330


21,843


26,152

Total revenues - dispositions


(263)


(7,711)


(10,904)


(35,407)

Pro forma total revenues (1)


177,254


175,054


742,722


726,872










Hotel Operating Expenses:









Hotel operating expenses


$       114,770


$       115,157


$       472,145


$       478,105

Hotel operating expenses - acquisitions


2,261


3,659


13,609


16,622

Hotel operating expenses - dispositions


(145)


(5,838)


(7,744)


(27,394)

Pro forma hotel operating expense (1)


116,886


112,978


478,010


467,333










Hotel EBITDA:









Operating income


8,037


428


103,490


58,787

(Gain) loss on disposal of assets and other dispositions, net


(473)


1


(28,912)


337

Loss on impairment and write-down of assets


6,723


16,661


6,723


16,661

Recoveries of credit losses


—


(730)


—


(1,230)

Transaction costs


—


(11)


10


13

Corporate general and administrative


7,403


7,305


31,891


32,530

Depreciation and amortization


36,471


38,624


146,436


150,924

Hotel EBITDA


58,161


62,278


259,638


258,022

Hotel EBITDA - acquisitions (2)


(976)


(876)


(4,022)


(1,450)

Hotel EBITDA - dispositions (3)


(118)


(1,873)


(3,160)


(8,013)

Same Store hotel EBITDA


57,067


59,529


252,456


248,559

Hotel EBITDA - acquisitions


3,301


2,547


12,256


10,980

Pro forma hotel EBITDA (1)


$         60,368


$         62,076


$       264,712


$       259,539



(1)

Unaudited pro forma information includes operating results for 97 hotels owned as of December 31, 2024, as if all such hotels had been owned by the Company since January 1, 2023. For hotels acquired by the Company after January 1, 2023 (the "Acquired Hotels"), the Company has included in the pro forma information the financial results of each of the Acquired Hotels for the period from January 1, 2023, to December 31, 2024. The financial results for the Acquired Hotels include information provided by the third-party owner of such Acquired Hotel prior to purchase by the Company and have not been audited or reviewed by our auditors or adjusted by us.  For any hotels sold by the Company after January 1, 2023 (the "Disposed Hotels"), the Company excludes the financial results of each of the Disposed Hotels from January 1, 2023 to the date the Disposed Hotels were sold by the Company in determining pro forma  total revenues and pro forma hotel operating expenses. The pro forma information is included to enable comparison of results for the current reporting period to results for the comparable period of the prior year and are not indicative of future results.



(2)

For any hotels acquired by the Company after January 1, 2023 (the "Acquired Hotels"), the Company has excluded the financial results of each of the Acquired Hotels for the period the Acquired Hotels were purchased by the Company to December 31, 2024 (the "Acquisition Period") in determining same-store hotel EBITDA. 



(3)

For hotels sold by the Company between January 1, 2023, and December 31, 2024 (the "Disposed Hotels"), the Company has excluded the financial results of each of the Disposed Hotels for the period beginning on January 1, 2023, and ending on the date the Disposed Hotels were sold by the Company (the "Disposition Period") in determining same-store hotel EBITDA.

 

Summit Hotel Properties, Inc.

Pro Forma Hotel Operating Data

(Unaudited)

(In thousands, except operating statistics)














2024


Year Ended

Pro Forma Operating Data: (1)


Q1


Q2


Q3


Q4


December 31, 2024

Pro forma room revenue


$          164,004


$          177,392


$          162,848


$          156,955


$                   661,199

Pro forma other hotel operations revenue


20,488


21,047


19,689


20,299


81,523

Pro forma total revenues


184,492


198,439


182,537


177,254


742,722

Pro forma total hotel operating expenses


117,992


122,775


120,357


116,886


478,010

Pro forma hotel EBITDA


$             66,500


$             75,664


$             62,180


$             60,368


$                   264,712

Pro forma hotel EBITDA Margin


36.0 %


38.1 %


34.1 %


34.1 %


35.6 %












Pro Forma Statistics: (1)











Rooms sold


955,533


1,035,292


991,580


957,027


3,939,432

Rooms available


1,324,414


1,324,414


1,338,979


1,339,060


5,326,867

Occupancy


72.1 %


78.2 %


74.1 %


71.5 %


74.0 %

ADR


$             171.64


$             171.34


$             164.23


$             164.00


$                     167.84

RevPAR


$             123.83


$             133.94


$             121.62


$             117.21


$                     124.13












Actual Statistics:











Rooms sold


969,479


1,014,864


966,019


935,012


3,885,374

Rooms available


1,351,150


1,306,712


1,311,563


1,312,953


5,282,378

Occupancy


71.8 %


77.7 %


73.7 %


71.2 %


73.6 %

ADR


$             172.70


$             170.49


$             162.95


$             163.47


$                     167.48

RevPAR


$             123.92


$             132.41


$             120.02


$             116.42


$                     123.19












Reconciliations of Non-GAAP financial measures to comparable GAAP financial measures
















Revenue:











Total revenues


$          188,142


$          193,903


$          176,807


$          172,931


$                   731,783

Total revenues - acquisitions


4,075


6,556


6,626


4,586


21,843

Total revenues - dispositions


(7,725)


(2,020)


(896)


(263)


(10,904)

Pro forma total revenues (1)


184,492


198,439


182,537


177,254


742,722












Hotel Operating Expenses:











Hotel operating expenses


119,618


120,874


116,883


114,770


472,145

Hotel operating expenses - acquisitions


3,309


3,979


4,060


2,261


13,609

Hotel operating expenses - dispositions


(4,935)


(2,078)


(586)


(145)


(7,744)

Pro forma hotel operating expenses (1)


117,992


122,775


120,357


116,886


478,010












Hotel EBITDA:











Operating income


23,489


56,209


15,755


8,037


103,490

Gain on disposal of assets, net


(75)


(28,342)


(22)


(473)


(28,912)

Loss on impairment and write-down of assets


—


—


—


6,723


6,723

Hotel acquisition and transition costs


—


—


10


—


10

Corporate general and administrative


8,311


8,704


7,473


7,403


31,891

Depreciation and amortization


36,799


36,458


36,708


36,471


146,436

Hotel EBITDA


68,524


73,029


59,924


58,161


259,638

Hotel EBITDA - acquisitions (2)


(1,838)


(709)


(499)


(976)


(4,022)

Hotel EBITDA - dispositions (3)


(2,790)


58


(310)


(118)


(3,160)

Same store hotel EBITDA


63,896


72,378


59,115


57,067


252,456

Hotel EBITDA - acquisitions


2,604


3,286


3,065


3,301


12,256

Pro forma hotel EBITDA (1)


$             66,500


$             75,664


$             62,180


$             60,368


$                   264,712



(1)

Unaudited pro forma information includes operating results for 97 hotels owned as of December 31, 2024, as if all such hotels had been owned by the Company since January 1, 2024. For hotels acquired by the Company after January 1, 2024, the Company has included in the pro forma information the financial results of each of the hotels acquired for the period from January 1, 2024, to December 31, 2024. The financial results for the hotels acquired include information provided by the third-party owner of such hotel prior to purchase by the Company and have not been audited or reviewed by our auditors or adjusted by us. For any hotels sold by the Company after January 1, 2024, the Company excludes the financial results of each of those hotels from January 1, 2024 to the date the hotels were sold by the Company in determining pro forma  total revenues and pro forma hotel operating expenses. The pro forma information is included to enable comparison of results for the current reporting period to results for the comparable period of the prior year and are not indicative of future results.



(2)

For any hotels acquired by the Company after January 1, 2023 (the "Acquired Hotels"), the Company has excluded the financial results of each of the Acquired Hotels for the period the Acquired Hotels were purchased by the Company to December 31, 2024 (the "Acquisition Period") in determining same-store hotel EBITDA.



(3)

For hotels sold by the Company between January 1, 2024, and December 31, 2024, the Company has excluded the financial results of each of the hotels for the period beginning on January 1, 2024, and ending on the date the hotels were sold by the Company in determining same-store hotel EBITDA.

 

Summit Hotel Properties, Inc.

Pro Forma and Same Store Data

(Unaudited)



For the Three Months Ended
December 31,


For the Twelve Months
Ended December 31,



2024


2023


2024


2023

Pro Forma (1)









Rooms sold


957,027


952,458


3,939,432


3,880,938

Rooms available


1,339,060


1,338,968


5,326,867


5,311,998

Occupancy


71.5 %


71.1 %


74.0 %


73.1 %

ADR


$          164.00


$          162.54


$     167.84


$     166.89

RevPAR


$          117.21


$          115.62


$     124.13


$     121.93










Occupancy change


0.5 %




1.2 %



ADR change


0.9 %




0.6 %



RevPAR change


1.4 %




1.8 %























For the Three Months Ended

December 31,


For the Twelve Months
Ended December 31,



2024


2023


2024


2023

Same-Store (2)









Rooms sold


916,844


912,811


3,774,328


3,717,805

Rooms available


1,286,988


1,286,896


5,119,711


5,105,408

Occupancy


71.2 %


70.9 %


73.7 %


72.8 %

ADR


$          163.55


$          162.23


$     167.30


$     166.59

RevPAR


$          116.52


$          115.07


$     123.34


$     121.31










Occupancy change


0.4 %




1.2 %



ADR change


0.8 %




0.4 %



RevPAR change


1.3 %




1.7 %





(1)

Unaudited pro forma information includes operating results for 97 hotels owned as of December 31, 2024, as if each hotel had been owned by the Company since January 1, 2023. As a result, these pro forma operating and financial measures include operating results for certain hotels for periods prior to the Company's ownership.



(2)

Same-store information includes operating results for 93 hotels owned by the Company as of January 1, 2023, and at all times during the three and twelve months ended December 31, 2024, and 2023.

 

Summit Hotel Properties, Inc.

Reconciliation of Net (Loss) Income to Non-GAAP Measures - EBITDA for Financial Outlook

(In thousands)

(Unaudited)



FYE 2025 Outlook



Low


High

Net (loss) income


$              (3,400)


$             13,400

Depreciation and amortization


148,600


148,600

Interest expense


79,800


79,000

Interest income


(500)


(500)

Income tax expense


3,000


3,000

EBITDA and EBITDAre


227,500


243,500

Equity-based compensation


8,800


8,800

Debt transaction costs


100


100

Other non-cash items, net


2,800


2,800

Loss (income) related to non-controlling interests in consolidated joint ventures


1,200


(1,900)

Adjustments related to non-controlling interests in consolidated joint ventures


(56,400)


(55,300)

Adjusted EBITDAre


$           184,000


$           198,000

 

Summit Hotel Properties, Inc.

Reconciliation of Net (Loss) Income to Non-GAAP Measures - Funds From Operations for Financial Outlook

(In thousands except per share and unit)

(Unaudited)








FYE 2025 Outlook



Low


High

Net (loss) income


$              (3,400)


$             13,400

Preferred dividends


(15,900)


(15,900)

Distributions to and accretion of redeemable non-controlling interests


(2,600)


(2,600)

Loss (income) related to non-controlling interests in consolidated joint ventures


1,200


(1,900)

Net loss applicable to common shares and Common Units


(20,700)


(7,000)

Real estate-related depreciation


147,900


147,900

Adjustments related to non-controlling interests in consolidated joint ventures


(31,700)


(31,700)

FFO applicable to common shares and Common Units


95,500


109,200

Amortization of deferred financing costs


6,500


6,500

Amortization of franchise fees


700


700

Equity-based compensation


8,800


8,800

Debt transaction costs


100


100

Other non-cash items, net


2,800


2,800

Adjustments related to non-controlling interests in consolidated joint ventures


(2,500)


(2,500)

AFFO applicable to common shares and Common Units


$           111,900


$           125,600

Weighted average diluted common shares/Common Units for FFO and AFFO


125,000


125,000

FFO per common share and Common Unit


$                  0.76


$                  0.87

AFFO per common share/Common Unit


$                  0.90


$                  1.00


Non-GAAP Financial Measures

We disclose certain "non-GAAP financial measures," which are measures of our historical financial performance. Non-GAAP financial measures are financial measures not prescribed by Generally Accepted Accounting Principles ("GAAP"). These measures are as follows: (i) Funds From Operations ("FFO") and Adjusted Funds from Operations ("AFFO"), (ii) Earnings before Interest, Taxes, Depreciation and Amortization ("EBITDA"), Earnings before Interest, Taxes, Depreciation and Amortization for Real Estate ("EBITDAre"), Adjusted EBITDAre, and hotel EBITDA (as described below). We caution investors that amounts presented in accordance with our definitions of non-GAAP financial measures may not be comparable to similar measures disclosed by other companies, since not all companies calculate these non-GAAP financial measures in the same manner. Our non-GAAP financial measures should be considered along with, but not as alternatives to, net income (loss) as a measure of our operating performance. Our non-GAAP financial measures may include funds that may not be available for our discretionary use due to functional requirements to conserve funds for capital expenditures, property acquisitions, debt service obligations and other commitments and uncertainties. Although we believe that our non-GAAP financial measures can enhance the understanding of our financial condition and results of operations, these non-GAAP financial measures are not necessarily better indicators of any trend as compared to a comparable measure prescribed by GAAP such as net income (loss).

Funds From Operations ("FFO") and Adjusted FFO ("AFFO")

As defined by Nareit, FFO represents net income or loss (computed in accordance with GAAP), excluding preferred dividends, gains (or losses) from sales of real property, impairment losses on real estate assets, items classified by GAAP as extraordinary, the cumulative effect of changes in accounting principles, plus depreciation and amortization related to real estate assets, and adjustments for unconsolidated partnerships, and joint ventures. AFFO represents FFO excluding amortization of deferred financing costs, franchise fees, equity-based compensation expense, debt transaction costs, premiums on redemption of preferred shares, losses from net casualties, non-cash lease expense, non-cash interest income and non-cash income tax related adjustments to our deferred tax assets. Unless otherwise indicated, we present FFO and AFFO applicable to our common shares and common units. We present FFO and AFFO because we consider FFO and AFFO an important supplemental measure of our operational performance and believe it is frequently used by securities analysts, investors, and other interested parties in the evaluation of REITs, many of which present FFO and AFFO when reporting their results. FFO and AFFO are intended to exclude GAAP historical cost depreciation and amortization, which assumes that the value of real estate assets diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. Because FFO and AFFO exclude depreciation and amortization related to real estate assets, gains and losses from real property dispositions and impairment losses on real estate assets, FFO and AFFO provide performance measures that, when compared year over year, reflect the effect to operations from trends in occupancy, guestroom rates, operating costs, development activities and interest costs, providing perspective not immediately apparent from net income. Our computation of FFO differs slightly from the computation of Nareit-defined FFO related to the reporting of corporate depreciation and amortization expense. Our computation of FFO may also differ from the methodology for calculating FFO used by other equity REITs and, accordingly, may not be comparable to such other REITs. FFO and AFFO should not be considered as an alternative to net income (loss) (computed in accordance with GAAP) as an indicator of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to pay dividends or make distributions. Where indicated in this release, FFO is based on our computation of FFO and not the computation of Nareit-defined FFO unless otherwise noted.

EBITDA, EBITDAre, Adjusted EBITDAre, and Hotel EBITDA

In September 2017, Nareit proposed a standardized performance measure, called EBITDAre, which is based on EBITDA and is expected to provide additional relevant information about REITs as real estate companies in support of growing interest among generalist investors. The conclusion was reached that, while dedicated REIT investors have long been accustomed to utilizing the industry's supplemental measures such as FFO and net operating income ("NOI") to evaluate the investment quality of REITs as real estate companies, it would be helpful to generalist investors for REITs as real estate companies to also present EBITDAre as a more widely known and understood supplemental measure of performance. EBITDAre is intended to be a supplemental non-GAAP performance measure that is independent of a company's capital structure and will provide a uniform basis for one measurement of the enterprise value of a company compared to other REITs.

EBITDAre, as defined by Nareit, is calculated as EBITDA, excluding: (i) loss and gains on disposition of property and (ii) asset impairments, if any. We believe EBITDAre is useful to an investor in evaluating our operating performance because it provides investors with an indication of our ability to incur and service debt, to satisfy general operating expenses, to make capital expenditures and to fund other cash needs or reinvest cash into our business. We also believe it helps investors meaningfully evaluate and compare the results of our operations from period to period by removing the effect of our asset base (primarily depreciation and amortization) from our operating results.

We make additional adjustments to EBITDAre when evaluating our performance because we believe that the exclusion of certain additional non-recurring or unusual items described below provides useful supplemental information to investors regarding our ongoing operating performance. We believe that the presentation of Adjusted EBITDAre, when combined with the primary GAAP presentation of net income, is useful to an investor in evaluating our operating performance because it provides investors with an indication of our ability to incur and service debt, to satisfy general operating expenses, to make capital expenditures and to fund other cash needs or reinvest cash into our business. We also believe it helps investors meaningfully evaluate and compare the results of our operations from period to period by removing the effect of our asset base (primarily depreciation and amortization) from our operating results.

With respect to hotel EBITDA, we believe that excluding the effect of corporate-level expenses and non-cash items provides a more complete understanding of the operating results over which individual hotels and operators have direct control. We believe the property-level results provide investors with supplemental information on the ongoing operational performance of our hotels and effectiveness of the third-party management companies operating our business on a property-level basis.

We caution investors that amounts presented in accordance with our definitions of EBITDA, EBITDAre, adjusted EBITDAre, and hotel EBITDA may not be comparable to similar measures disclosed by other companies, since not all companies calculate these non-GAAP measures in the same manner. EBITDA, EBITDAre, adjusted EBITDAre, and hotel EBITDA should not be considered as an alternative measure of our net income (loss) or operating performance. EBITDA, EBITDAre, adjusted EBITDAre, and hotel EBITDA may include funds that may not be available for our discretionary use due to functional requirements to conserve funds for capital expenditures and property acquisitions and other commitments and uncertainties. Although we believe that EBITDA, EBITDAre, adjusted EBITDAre, and hotel EBITDA can enhance your understanding of our financial condition and results of operations, these non-GAAP financial measures are not necessarily a better indicator of any trend as compared to a comparable GAAP measure such as net income (loss). Above, we include a quantitative reconciliation of EBITDA, EBITDAre, adjusted EBITDAre and hotel EBITDA to the most directly comparable GAAP financial performance measure, which is net income (loss) and operating income (loss).

 

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SOURCE Summit Hotel Properties, Inc.

FAQ

What was Summit Hotel Properties' (INN) RevPAR growth in 2024?

Summit Hotel Properties' pro forma RevPAR increased 1.8% to $124.13 in 2024 compared to 2023, with ADR increasing 0.6% to $167.84 and occupancy increasing 1.2% to 74.0%.

How much did Summit Hotel Properties (INN) spend on acquisitions in Q4 2024?

Summit Hotel Properties spent $96 million in Q4 2024 to acquire the Hampton Inn Boston-Logan Airport and Hilton Garden Inn Tysons Corner through its joint venture with GIC.

What was INN's Adjusted FFO per share for full-year 2024?

Summit Hotel Properties reported Adjusted FFO of $0.96 per diluted share for full-year 2024, representing a 5.6% increase from $0.92 per share in 2023.

How many hotels did Summit Hotel Properties (INN) sell in 2024?

Summit Hotel Properties and its affiliates sold five hotels for a combined sales price of nearly $112 million in 2024.

Stock INN logo
Summit Hotel Pptys Inc

NYSE:INN

INN Rankings

#1823 Ranked by Market Cap
#606 Ranked by Dividends

INN Latest News

Feb 20, 2025
Summit Hotel Properties Announces 2025 Annual Meeting of Stockholders
Jan 23, 2025
SUMMIT HOTEL PROPERTIES DECLARES FOURTH QUARTER 2024 DIVIDENDS
Jan 9, 2025
SUMMIT HOTEL PROPERTIES ANNOUNCES FOURTH QUARTER AND FULL YEAR 2024 EARNINGS RELEASE DATE
Dec 10, 2024
Summit Hotel Properties Announces Pending Acquisition of Two-Hotel Portfolio for $96 Million Through GIC Joint Venture
Nov 4, 2024
SUMMIT HOTEL PROPERTIES REPORTS THIRD QUARTER 2024 RESULTS

INN Stock Data

716.87M
106.50M
3.03%
95.78%
3.25%
REIT - Hotel & Motel
Real Estate Investment Trusts
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