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SUMMIT HOTEL PROPERTIES REPORTS THIRD QUARTER 2024 RESULTS

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Summit Hotel Properties (NYSE: INN) reported Q3 2024 results with a net loss of $4.3 million ($0.04 per share). Key metrics include: Pro forma RevPAR increased 0.1% to $120.02, Adjusted FFO grew 4.0% to $27.6 million ($0.22 per share), and Pro forma hotel EBITDA decreased 2.9% to $59.7 million. The company sold Four Points San Francisco Airport for $17.7 million post-quarter. Year-to-date, Adjusted FFO per share increased by 8%, driven by 4.5% growth in Adjusted EBITDA. The company revised its 2024 outlook, maintaining Adjusted FFO guidance while slightly lowering Adjusted EBITDAre expectations due to hurricane disruptions.

Summit Hotel Properties (NYSE: INN) ha riportato i risultati del terzo trimestre 2024, evidenziando una perdita netta di 4,3 milioni di dollari (0,04 dollari per azione). I principali indicatori includono: RevPAR Pro forma aumentato dello 0,1% a 120,02 dollari, FFO Rettificato cresciuto del 4,0% a 27,6 milioni di dollari (0,22 dollari per azione) e EBITDA Pro forma dell'hotel diminuito del 2,9% a 59,7 milioni di dollari. L'azienda ha venduto Four Points San Francisco Airport per 17,7 milioni di dollari dopo il trimestre. Da inizio anno, l'FFO rettificato per azione è aumentato dell'8%, grazie a una crescita del 4,5% dell'EBITDA rettificato. L'azienda ha rivisto le sue previsioni per il 2024, mantenendo le linee guida per l'FFO rettificato, mentre ha leggermente abbassato le aspettative per l'EBITDA rettificato a causa delle interruzioni causate dagli uragani.

Summit Hotel Properties (NYSE: INN) informó los resultados del tercer trimestre de 2024, con una pérdida neta de 4.3 millones de dólares (0.04 dólares por acción). Los indicadores clave incluyen: RevPAR Pro forma que aumentó un 0.1% a 120.02 dólares, FFO Ajustado que creció un 4.0% a 27.6 millones de dólares (0.22 dólares por acción) y EBITDA Pro forma del hotel que disminuyó un 2.9% a 59.7 millones de dólares. La compañía vendió Four Points San Francisco Airport por 17.7 millones de dólares después del trimestre. Hasta la fecha, el FFO ajustado por acción aumentó un 8%, impulsado por un crecimiento del 4.5% en el EBITDA ajustado. La empresa revisó su previsión para 2024, manteniendo la guía de FFO ajustado mientras que redujo ligeramente las expectativas de EBITDA ajustado debido a las interrupciones causadas por huracanes.

써밋 호텔 프로퍼티즈 (NYSE: INN)는 2024년 3분기 결과를 발표하며 430만 달러의 순손실(주당 0.04 달러)을 기록했습니다. 주요 지표는 다음과 같습니다: 프로 포르마 RevPAR이 0.1% 증가하여 120.02 달러, 조정된 FFO가 4.0% 증가하여 2760만 달러(주당 0.22 달러), 프로 포르마 호텔 EBITDA는 2.9% 감소하여 5970만 달러입니다. 이 회사는 분기 후 1770만 달러에 포시즌 샌프란시스코 에어포트를 매각했습니다. 연초부터 회계 연도까지 조정된 FFO 주당 증가폭은 8%로, 조정 EBITDA의 4.5% 성장에 힘입은 것입니다. 또한, 이 회사는 2024년 전망을 수정해 조정된 FFO 가이드를 유지하면서 허리케인으로 인한 혼란으로 인해 조정된 EBITDA의 기대치를 약간 낮췄습니다.

Summit Hotel Properties (NYSE: INN) a annoncé les résultats du troisième trimestre 2024 avec une perte nette de 4,3 millions de dollars (0,04 dollar par action). Les indicateurs clés incluent : RevPAR Pro forma augmenté de 0,1 % à 120,02 dollars, FFO Ajusté en hausse de 4,0 % à 27,6 millions de dollars (0,22 dollar par action), et EBITDA Pro forma de l'hôtel en baisse de 2,9 % à 59,7 millions de dollars. L'entreprise a vendu Four Points San Francisco Airport pour 17,7 millions de dollars après le trimestre. Depuis le début de l'année, le FFO ajusté par action a augmenté de 8 %, soutenu par une croissance de 4,5 % de l'EBITDA ajusté. L'entreprise a revu ses prévisions pour 2024, maintenant ses orientations pour le FFO ajusté tout en réduisant légèrement ses attentes concernant l'EBITDA ajusté en raison des perturbations causées par les ouragans.

Summit Hotel Properties (NYSE: INN) berichtete über die Ergebnisse des dritten Quartals 2024 mit einem Nettoeinkommen von 4,3 Millionen US-Dollar (0,04 US-Dollar pro Aktie). Zu den wichtigsten Kennzahlen gehören: Pro forma RevPAR stieg um 0,1% auf 120,02 US-Dollar, Bereinigtes FFO wuchs um 4,0% auf 27,6 Millionen US-Dollar (0,22 US-Dollar pro Aktie) und Pro forma Hotel-EBITDA fiel um 2,9% auf 59,7 Millionen US-Dollar. Das Unternehmen verkaufte Four Points San Francisco Airport nach dem Quartal für 17,7 Millionen US-Dollar. Im bisherigen Jahresverlauf stieg das bereinigte FFO pro Aktie um 8%, was durch ein Wachstum des bereinigten EBITDA von 4,5% angetrieben wurde. Das Unternehmen hat seine Prognose für 2024 überarbeitet, die Prognose für das bereinigte FFO beibehalten und die Erwartungen für das bereinigte EBITDA aufgrund von Störungen durch Hurrikane leicht gesenkt.

Positive
  • Year-to-date Adjusted FFO increased 9.3% to $94.0 million ($0.76 per share)
  • Year-to-date Adjusted EBITDAre grew 4.5% to $150.1 million
  • Pro forma hotel EBITDA margin expanded 32 basis points to 36.1% year-to-date
  • Strategic asset sales of 10 hotels generated $150 million at <5% cap rate, reducing leverage
Negative
  • Q3 net loss of $4.3 million ($0.04 per share)
  • Q3 Pro forma hotel EBITDA decreased 2.9% to $59.7 million
  • Q3 Pro forma hotel EBITDA margin contracted 99 basis points to 33.8%
  • Lowered 2024 Adjusted EBITDAre guidance due to hurricane disruptions

Insights

Summit Hotel Properties' Q3 2024 results reflect mixed performance with some concerning trends. Net loss improved slightly to $4.3 million (-$0.04 per share) from -$5.4 million year-over-year. While year-to-date performance shows improvement with Adjusted FFO up 9.3% to $94.0 million, Q3 metrics indicate slowing momentum.

Key concerns include:

  • Marginal RevPAR growth of just 0.1%
  • Pro forma hotel EBITDA decline of 2.9% to $59.7 million
  • EBITDA margin contraction of 99 basis points to 33.8%

The company's strategic asset recycling program, while reducing leverage and improving portfolio quality, hasn't fully offset operational headwinds. The recent $17.7 million Four Points sale continues this trend but indicates potentially challenging market conditions ahead.

The company's capital recycling strategy shows mixed results. While successfully divesting 10 properties for nearly $150 million at sub-5% cap rates and avoiding $47 million in capital expenditures, the remaining portfolio faces growth challenges. The 30% RevPAR discount of sold properties versus the current portfolio suggests quality improvement, but current operations show benefit.

The revised 2024 outlook, with reduced RevPAR growth expectations and tightened EBITDA guidance, signals near-term challenges. Leverage reduction of nearly one turn is positive, but the $1.0 billion debt load at 4.68% interest rate remains significant in the current rate environment.

Four Points San Francisco Airport Hotel Sold for $17.7 Million Subsequent to Quarter-End

AUSTIN, Texas, Nov. 4, 2024 /PRNewswire/ -- Summit Hotel Properties, Inc. (NYSE: INN) (the "Company"), today announced results for the three and nine months ended September 30, 2024.

"We are pleased with our third quarter financial results highlighted by our third consecutive quarter of Adjusted FFO growth as our accretive capital recycling program strategy offset moderate top-line growth in the quarter, that was negatively affected by disruption from Hurricane Helene in September in several of our key markets.  Year-to-date, Adjusted FFO per share has increased by nearly eight percent driven by a 4.5 percent increase in Adjusted EBITDA despite being a net seller of assets.  Pro forma hotel EBITDA margins expanded by over 30 basis points during that period reflecting the efficiency of our hotels' operating models and the strength of our operating platform," said Jonathan P. Stanner, the Company's President and Chief Executive Officer.

"We also continued our capital recycling program subsequent to quarter-end, as we completed the sale of the Four Points San Francisco Airport for $17.7 million.  Over the last 18 months, we have sold 10 hotels generating nearly $150 million of proceeds at less than a 5% capitalization rate including foregone capital expenditures.  Our disposition activity has facilitated nearly a full turn reduction in leverage ratio, enhanced the quality and growth profile of the portfolio, significantly reduced near-term capital requirements, and created capacity for future external growth," continued Mr. Stanner.

Third Quarter 2024 Summary

  • Net Loss: Net loss attributable to common stockholders was $4.3 million, or $0.04 per diluted share, compared to a net loss of $5.4 million, or $0.05 per diluted share, for the third quarter of 2023.
  • Pro forma RevPAR: Pro forma RevPAR increased 0.1 percent to $120.02 compared to the third quarter of 2023. Pro forma ADR increased 1.3 percent to $162.95 compared to the same period in 2023, and pro forma occupancy decreased 1.2 percent to 73.7 percent.
  • Same Store RevPAR: Same Store RevPAR increased 0.2 percent to $120.28 compared to the third quarter of 2023. Same store ADR increased 1.2 percent to $163.06 and same store occupancy decreased 1.0 percent to 73.8 percent.
  • Pro Forma Hotel EBITDA(1): Pro forma hotel EBITDA decreased 2.9 percent to $59.7 million from $61.5 million in the same period in 2023. Pro forma hotel EBITDA margin contracted approximately 99 basis points to 33.8 percent.
  • Same Store Hotel EBITDA(1): Same store hotel EBITDA decreased 2.9 percent to $59.2 million from $61.0 million in the same period in 2023. Same store hotel EBITDA margin contracted approximately 101 basis points to 33.8 percent.
  • Adjusted EBITDAre(1): Adjusted EBITDAre decreased 2.1 percent to $45.3 million from $46.3 million in the third quarter of 2023.
  • Adjusted FFO(1): Adjusted FFO increased 4.0 percent to $27.6 million, or $0.22 per diluted share, compared to $26.5 million, or $0.22 per diluted share, in the third quarter of 2023.

Year-to-Date 2024 Summary

  • Net Income: Net income attributable to common stockholders was $24.5 million, or $0.21 per diluted share, compared to a net loss of $11.4 million, or $0.11 per diluted share, in the same period of 2023.
  • Pro forma RevPAR: Pro forma RevPAR increased 1.6 percent to $125.41 compared to the same period of 2023. Pro forma ADR increased 0.3 percent to $168.67, and pro forma occupancy increased 1.2 percent to 74.4 percent.
  • Same Store RevPAR: Same Store RevPAR increased 1.6 percent to $125.22 compared to the same period of 2023. Same store ADR increased 0.3 percent to $168.35, and same store occupancy increased 1.3 percent to 74.4 percent.
  • Pro Forma Hotel EBITDA(1): Pro forma hotel EBITDA increased 3.1 percent to $198.5 million from $192.5 million, and pro formal hotel EBITDA margin expanded 32 basis points to 36.1 percent.
  • Same Store Hotel EBITDA(1): Same store hotel EBITDA increased 3.1 percent to $195.5 million from $189.5 million, and same store hotel EBITDA margin expanded 32 basis points to 36.0 percent.
  • Adjusted EBITDAre(1): Adjusted EBITDAre increased 4.5 percent to $150.1 million from $143.6 million in the same period of 2023.
  • Adjusted FFO(1): Adjusted FFO increased 9.3 percent to $94.0 million, or $0.76 per diluted share, compared to $86.0 million, or $0.70 per diluted share, in the same period of 2023.

The Company's results for the three and nine months ended September 30, 2024 and 2023 are as follows (in thousands, except per share amounts and metrics):


For the Three Months Ended

September 30,


For the Nine Months Ended
September 30,


2024


2023


2024


2023



Net (loss) income attributable to common stockholders

$            (4,272)


$            (5,438)


$         24,461


$       (11,419)

Net (loss) income per diluted share

$              (0.04)


$              (0.05)


$             0.21


$           (0.11)

Total revenues

$          176,807


$          181,816


$       558,852


$       558,692

EBITDAre (1)

$            53,745


$            55,359


$       184,699


$       172,301

Adjusted EBITDAre (1)

$            45,340


$            46,315


$       150,061


$       143,638

FFO (1)

$            23,135


$            22,669


$         83,557


$         72,592

Adjusted FFO (1)

$            27,610


$            26,546


$         93,976


$         85,957

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

$                 0.19


$                 0.19


$             0.67


$             0.59

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

$                 0.22


$                 0.22


$             0.76


$             0.70









Pro Forma (2)








RevPAR

$            120.02


$            119.90


$         125.41


$         123.47

RevPAR Growth

0.1 %




1.6 %



Hotel EBITDA

$             59,745


$            61,516


$       198,497


$       192,531

Hotel EBITDA Margin

33.8 %


34.8 %


36.1 %


35.8 %

Hotel EBITDA Margin (Contraction) Growth

(99) bps




 32  bps











Same Store (3)








RevPAR

$            120.28


$            120.08


$         125.22


$         123.22

RevPAR Growth

0.2 %




1.6 %



Hotel EBITDA

$            59,245


$            61,011


$       195,451


$       189,520

Hotel EBITDA Margin

33.8 %


34.8 %


36.0 %


35.6 %

Hotel EBITDA Margin (Contraction) Growth

(101) bps




32  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 (loss) 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 96 hotels owned as of September 30, 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 94 hotels owned as of September 30, 2024, and at all times during the three and nine months ended September 30, 2024, and 2023.

Transaction Activity

Four Points San Francisco Airport Sold for $17.7 Million

Subsequent to the end of the third quarter, the Company completed the sale of the 101-guestroom Four Points by Sheraton San Francisco Airport for a gross sales price of $17.7 million. The hotel's net operating income at the time of sale was de minimis and net proceeds were used for debt repayment and general corporate purposes.

Over the last eighteen months, the Company and its affiliates have sold ten 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 : Adjusted EBITDAre leverage ratio, enhanced the quality and growth profile of the portfolio, and significantly reduced near-term capital requirements.

Sold Hotels (2023 & YTD 2024)


Count


Keys


Date


Price (1)


Capex (1)(2)


RevPAR (3)

Hyatt Place Chicago/Lombard


1


151


May 2023


$  10,500


$     5,700


$            76

Hyatt Place Chicago/Hoffman Estates


1


126


May 2023


3,000


7,200


68

Hilton Garden Inn Minneapolis/Eden Prairie


1


97


May 2023


8,200


4,300


81

Holiday Inn Express & Suites Minnetonka


1


93


May 2023


6,400


3,300


74

Hyatt Place Baltimore/Owings Mills


1


123


Dec 2023


8,250


5,200


69

Hyatt Place Dallas/Plano


1


127


Feb 2024


10,250


5,200


69

New Orleans (2) Convention Center


2


410


Apr 2024


73,000


10,250


111

Hilton Garden Inn College Station


1


119


Apr 2024


11,000


2,975


86

Four Points San Francisco Airport


1


101


Oct 2024


17,700


3,000


65

Total


10


1,347




$ 148,300


$   47,125


$            85

(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.

Capital Markets and Balance Sheet

On a pro rata basis as of September 30, 2024, the Company had the following outstanding indebtedness and liquidity available:

  • Outstanding debt of $1.0 billion with a weighted average interest rate of 4.68 percent. After giving effect to interest rate derivative agreements, $798.9 million, or 77 percent, of our outstanding debt had a fixed interest rate, and $243.9 million, or 23 percent, had a variable interest rate.
  • Unrestricted cash and cash equivalents of $41.4 million.
  • Total liquidity of over $400 million, including unrestricted cash and cash equivalents and revolving credit facility availability, which reflects a liquidity enhancement option available for the Company to exercise in its sole discretion.

Common and Preferred Dividend Declaration

On October 24, 2024, 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 5.2 percent, based on the closing price of shares of the common stock on November 1, 2024.

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 November 29, 2024, to holders of record as of November 15, 2024.

2024 Outlook

The Company is revising its full-year 2024 outlook to reflect the moderating RevPAR growth environment and disruption related to Hurricanes Helene and Milton in the third and fourth quarter.  The revised Adjusted EBITDAre range incorporates a high-end that has been modestly tightened and Adjusted FFO and Adjusted FFO per share ranges that have been tightened and midpoints maintained.

The full-year 2024 outlook is based on 95 lodging assets currently owned, 53 of which were wholly owned as of November 4, 2024. The updated outlook incorporates all transaction activity closed to date and there are no additional acquisitions, dispositions, or capital markets activities assumed in the Company's full-year 2024 outlook beyond the transactions already completed.  The revised 2024 outlook incorporates the sale of the 101-guestroom Four Points San Francisco Airport.



FYE 2024 Outlook



Low


High


Variance to
Prior
Midpoint


% Change to
Prior
Midpoint

Pro Forma RevPAR Growth (1)


1.00 %


2.00 %


(0.25) %


— %

Adjusted EBITDAre


$        188,000


$        194,000


$           (1,000)


(0.5) %

Adjusted FFO


$        113,000


$        121,000


$                  —


— %

Adjusted FFO per Diluted Unit


$              0.92


$              0.98


$                  —


— %

Capital Expenditures, Pro Rata


$          75,000


$          85,000


$             5,000


6.7 %

(1) All pro forma information includes operating and financial results for 95 lodging assets owned as of November 4, 2024, as if each property had been owned by the Company since January 1, 2023 and will continue to be owned through the entire year ending December 31, 2024. As a result, the pro forma information includes operating and financial results for lodging assets acquired since January 1, 2023, which may include periods prior to the Company's ownership. Pro forma and non-GAAP financial measures are unaudited.

Third Quarter 2024 Earnings Conference Call

The Company will conduct its quarterly conference call on November 5, 2024, 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 January 31, 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 November 4, 2024, the Company's portfolio consisted of 95 assets, 53 of which are wholly owned, with a total of 14,154 guestrooms located in 24 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, 2023, 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.

Condensed Consolidated Balance Sheets

(In thousands)



September 30, 2024


December 31, 2023



(Unaudited)



ASSETS





Investments in lodging property, net


$                  2,669,478


$                   2,736,975

Investment in lodging property under development


5,397


1,451

Assets held for sale, net


18,621


65,736

Cash and cash equivalents


51,698


37,837

Restricted cash


7,339


9,931

Right-of-use assets, net


33,454


34,814

Trade receivables, net


20,724


21,348

Prepaid expenses and other


16,647


8,865

Deferred charges, net


6,237


6,659

Other assets


7,688


15,632

Total assets


$                  2,837,283


$                   2,939,248






LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS
AND EQUITY





Liabilities:





Debt, net of debt issuance costs


$                  1,336,095


$                   1,430,668

Lease liabilities, net


24,879


25,842

Accounts payable


6,130


4,827

Accrued expenses and other


96,679


81,215

Total liabilities


1,463,783


1,542,552






Redeemable non-controlling interests


50,219


50,219






Total stockholders' equity


911,436


911,195

Non-controlling interests


411,845


435,282

Total equity


1,323,281


1,346,477

Total liabilities, redeemable non-controlling interests and equity


$                  2,837,283


$                   2,939,248

 

Summit Hotel Properties, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

(In thousands, except per share amounts)



For the Three Months
Ended September 30,


For the Nine Months
Ended September 30,



2024


2023


2024


2023

Revenues:









Room


$       157,408


$       161,712


$       497,864


$       498,982

Food and beverage


9,272


9,949


30,174


30,848

Other


10,127


10,155


30,814


28,862

Total revenues


176,807


181,816


558,852


558,692










Expenses:









Room


37,286


37,510


111,303


112,207

Food and beverage


7,289


7,684


23,130


23,679

Other lodging property operating expenses


56,330


55,826


170,061


169,780

Property taxes, insurance and other


13,250


14,369


40,822


43,308

Management fees


2,728


4,177


12,059


13,974

Depreciation and amortization


36,708


37,882


109,965


112,300

Corporate general and administrative


7,473


8,126


24,488


25,225

Transaction costs


10



10


24

Recovery of credit losses



(250)



(500)

Total expenses


161,074


165,324


491,838


499,997

Gain (loss) on disposal of assets, net


22


(16)


28,439


(336)

Operating income


15,755


16,476


95,453


58,359










Other income (expense):









Interest expense


(20,428)


(22,020)


(62,840)


(65,177)

Interest income


450


474


1,473


1,190

Gain on extinguishment of debt




3,000


Other income, net


999


661


3,813


458

Total other expense, net


(18,979)


(20,885)


(54,554)


(63,529)

(Loss) income from continuing operations before income
taxes


(3,224)


(4,409)


40,899


(5,170)

Income tax expense


(332)


(1,360)


(2,924)


(1,679)

Net (loss) income


(3,556)


(5,769)


37,975


(6,849)

Less - Loss attributable to non-controlling interests


3,908


4,955


362


9,306

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


352


(814)


38,337


2,457

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


(656)


(656)


(1,970)


(1,970)

Less - Preferred dividends


(3,968)


(3,968)


(11,906)


(11,906)

Net (loss) income attributable to common stockholders


$         (4,272)


$         (5,438)


$         24,461


$       (11,419)










(Loss) income per common share:









Basic


$            (0.04)


$            (0.05)


$              0.23


$            (0.11)

Diluted


$            (0.04)


$            (0.05)


$              0.21


$            (0.11)

Weighted-average common shares outstanding:









Basic


106,033


105,650


105,891


105,510

Diluted


106,033


105,650


150,003


105,510

 

Summit Hotel Properties, Inc.

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

(Unaudited)

(In thousands, except per share and unit amounts)



For the Three Months
Ended September 30,


For the Nine Months
Ended September 30,



2024


2023


2024


2023

Net (loss) income


$         (3,556)


$         (5,769)


$         37,975


$         (6,849)

Preferred dividends


(3,968)


(3,968)


(11,906)


(11,906)

Distributions to and accretion of redeemable non-controlling
interests


(656)


(656)


(1,970)


(1,970)

Loss related to non-controlling interest in consolidated joint
ventures


3,274


4,442


4,011


8,093

Net (loss) income applicable to Common Stock and
Common Units


(4,906)


(5,951)


28,110


(12,632)

Real estate-related depreciation


35,721


36,697


106,590


108,751

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


(22)


16


(28,439)


384

Adjustments related to non-controlling interests in
consolidated joint ventures


(7,658)


(8,093)


(22,704)


(23,911)

FFO applicable to Common Stock and Common Units


23,135


22,669


83,557


72,592

Recoveries of credit losses



(250)



(500)

Amortization of debt issuance costs


1,640


1,594


4,880


4,379

Amortization of franchise fees


169


153


494


439

Amortization of intangible assets, net


698


911


2,520


2,733

Equity-based compensation


1,854


1,867


6,337


5,913

Transaction costs and other


10



10


24

Debt transaction costs


66


90


647


418

Gain on extinguishment of debt




(3,000)


Non-cash interest income, net (1)


(134)


(134)


(400)


(397)

Non-cash lease expense, net


110


106


332


368

Casualty loss (gain)


244


380


(637)


1,851

Other non-cash items, net


604



963


768

Adjustments related to non-controlling interests in
consolidated joint ventures


(786)


(840)


(1,727)


(2,631)

AFFO applicable to Common Stock and Common
Units


$          27,610


$          26,546


$          93,976


$          85,957

FFO per share of Common Stock and Common Units


$              0.19


$              0.19


$              0.67


$              0.59

AFFO per share of Common Stock and Common Units


$              0.22


$              0.22


$              0.76


$              0.70

Weighted-average diluted shares of Common Stock and
Common Units:









FFO and AFFO (2)


124,580


122,513


124,389


122,312

(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 September 30,


For the Nine Months
Ended September 30,



2024


2023


2024


2023

Weighted average common shares outstanding - diluted


106,033


105,650


150,003


105,510

Adjusted for:









Non-GAAP adjustment for restricted stock awards


2,604


893



828

Non-GAAP adjustment for dilutive effects of Common
Units


15,943


15,970



15,974

Non-GAAP adjustment for dilutive effect of shares of
Common Stock issuable upon conversion of convertible
debt (1)




(25,614)


  Non-GAAP weighted diluted share of Common Stock
  and Common Units


124,580


122,513


124,389


122,312

(1)  The weighted-average shares of Common Stock and Common Units used to calculate FFO and AFFO per share of Common Stock and Common Units for the three and nine months ended September 30, 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 (Loss) Income to Non-GAAP Measures - EBITDAre

(Unaudited)

(In thousands)



 For the Three Months
Ended September 30,


For the Nine Months
Ended September 30,



2024


2023


2024


2023

Net (loss) income


$         (3,556)


$         (5,769)


$         37,975


$         (6,849)

Depreciation and amortization


36,708


37,882


109,965


112,300

Interest expense


20,428


22,020


62,840


65,177

Interest income on cash deposits


(145)


(150)


(566)


(390)

Income tax expense


332


1,360


2,924


1,679

EBITDA


53,767


55,343


213,138


171,917

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


(22)


16


(28,439)


384

EBITDAre


53,745


55,359


184,699


172,301

Recoveries of credit losses



(250)



(500)

Amortization of key money liabilities


(120)


(121)


(362)


(378)

Equity-based compensation


1,854


1,867


6,337


5,913

Transaction costs and other


10



10


24

Debt transaction costs


66


90


647


418

Gain on extinguishment of debt




(3,000)


Non-cash interest income, net (1)


(134)


(134)


(400)


(397)

Non-cash lease expense, net


110


106


332


368

Casualty loss (gain)


244


380


(637)


1,851

Loss related to non-controlling interest in consolidated joint
ventures


3,274


4,442


4,011


8,093

Other non-cash items, net


604



966


705

Adjustments related to non-controlling interests in
consolidated joint ventures


(14,313)


(15,424)


(42,542)


(44,760)

Adjusted EBITDAre


$         45,340


$         46,315


$       150,061


$       143,638

(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

September 30,


For the Nine Months Ended

September 30,

Pro Forma Operating Data


2024


2023


2024


2023

Pro forma room revenue


$       157,408


$       157,247


$       489,889


$       480,492

Pro forma other hotel operations revenue


19,399


19,617


60,325


57,983

Pro forma total revenues


176,807


176,864


550,214


538,475

Pro forma total hotel operating expenses


117,062


115,348


351,717


345,944

Pro forma hotel EBITDA


$         59,745


$         61,516


$       198,497


$       192,531

Pro forma hotel EBITDA Margin


33.8 %


34.8 %


36.1 %


35.8 %










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


















Revenue:









Total revenues


$       176,807


$       181,816


$       558,852


$       558,692

Total revenues - acquisitions (1)





4,715

Total revenues - dispositions (2)



(4,952)


(8,638)


(24,932)

Pro forma total revenues


176,807


176,864


550,214


538,475










Hotel Operating Expenses:









Hotel operating expenses


$       116,883


$       119,566


$       357,375


$       362,948

Hotel operating expenses - acquisitions (1)





2,279

Hotel operating expenses - dispositions (2)


179


(4,218)


(5,658)


(19,283)

Pro forma hotel operating expense


117,062


115,348


351,717


345,944










Hotel EBITDA:









Operating income


15,755


16,476


95,453


58,359

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


(22)


16


(28,439)


336

Recoveries of credit losses



(250)



(500)

Transaction costs


10



10


24

Corporate general and administrative


7,473


8,126


24,488


25,225

Depreciation and amortization


36,708


37,882


109,965


112,300

Hotel EBITDA


59,924


62,250


201,477


195,744

Hotel EBITDA - acquisitions (1)


(499)


(505)


(3,046)


(574)

Hotel EBITDA - dispositions (2)


(180)


(734)


(2,980)


(5,650)

Same Store hotel EBITDA


59,245


61,011


195,451


189,520

Hotel EBITDA - acquisitions (3)


500


505


3,046


3,011

Pro forma hotel EBITDA


$         59,745


$         61,516


$       198,497


$       192,531

(1) For any hotels acquired by the Company after October 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 September 30, 2024 (the "Acquisition Period") in determining same-store hotel EBITDA. 


(2) For hotels sold by the Company between October 1, 2023, and September 30, 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.


(3) Unaudited pro forma information includes operating results for 96 hotels owned as of September 30, 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 September 30, 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. 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.

 

Summit Hotel Properties, Inc.

Pro Forma Hotel Operating Data

(Unaudited)

(In thousands, except operating statistics)











Trailing Twelve



2023


2024


Months Ended

Pro Forma Operating Data (1)


Q4


Q1


Q2


Q3


September 30, 2024

Pro forma room revenue


$          150,382


$          160,705


$          171,776


$          157,408


$                   640,271

Pro forma other hotel operations revenue


19,861


20,187


20,739


19,399


80,186

Pro forma total revenues


170,243


180,892


192,515


176,807


720,457

Pro forma total hotel operating expenses


110,014


115,235


119,420


117,062


461,731

Pro forma hotel EBITDA


$             60,229


$             65,657


$             73,095


$             59,745


$                   258,726

Pro forma hotel EBITDA Margin


35.4 %


36.3 %


38.0 %


33.8 %


35.9 %












Pro Forma Statistics (1)











Rooms sold


926,797


930,768


1,007,709


966,019


3,831,293

Rooms available


1,311,552


1,297,296


1,297,296


1,311,563


5,217,707

Occupancy


70.7 %


71.7 %


77.7 %


73.7 %


73.4 %

ADR


$             162.26


$             172.66


$             170.46


$             162.95


$                     167.12

RevPAR


$             114.66


$             123.88


$             132.41


$             120.02


$                     122.71












Actual Statistics











Rooms sold


970,959


969,479


1,014,864


966,019


3,921,321

Rooms available


1,381,867


1,351,150


1,306,712


1,311,563


5,351,292

Occupancy


70.3 %


71.8 %


77.7 %


73.7 %


73.3 %

ADR


$             161.78


$             172.70


$             170.49


$             162.95


$                     167.02

RevPAR


$             113.67


$             123.92


$             132.41


$             120.02


$                     122.39












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
















Revenue:











Total revenues


$          177,436


$          188,142


$          193,903


$          176,807


$                   736,288

Total revenues - acquisitions (1)






Total revenues - dispositions (2)


(7,193)


(7,250)


(1,388)



(15,831)

Pro forma total revenues


170,243


180,892


192,515


176,807


720,457












Hotel Operating Expenses:











Hotel operating expenses


115,158


119,618


120,874


116,883


472,533

Hotel operating expenses - acquisitions (1)






Hotel operating expenses - dispositions (2)


(5,144)


(4,383)


(1,454)


179


(10,802)

Pro forma hotel operating expenses


110,014


115,235


119,420


117,062


461,731












Hotel EBITDA:











Operating income


428


23,489


56,209


15,755


95,881

Loss (gain) on disposal of assets, net


1


(75)


(28,342)


(22)


(28,438)

Loss on impairment and write-off of assets


16,661





16,661

Recoveries of credit losses


(730)





(730)

Hotel acquisition and transition costs


(11)




10


(1)

Corporate general and administrative


7,305


8,311


8,704


7,473


31,793

Depreciation and amortization


38,624


36,799


36,458


36,708


148,589

Hotel EBITDA


62,278


68,524


73,029


59,924


263,755

Hotel EBITDA - acquisitions (1)


(876)


(1,838)


(709)


(499)


(3,922)

Hotel EBITDA - dispositions (2)


(2,049)


(2,867)


67


(180)


(5,029)

Same store hotel EBITDA


59,353


63,819


72,387


59,245


254,804

Hotel EBITDA - acquisitions (3)


876


1,838


708


500


3,922

Pro forma hotel EBITDA


$             60,229


$             65,657


$             73,095


$             59,745


$                   258,726

(1) For any hotels acquired by the Company after January 1, 2024 (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 September 30, 2024 (the "Acquisition Period") in determining same-store hotel EBITDA. 


(2) For hotels sold by the Company between  January 1, 2024, and September 30, 2024 (the "Disposed Hotels"), the Company has excluded the financial results of each of the Disposed Hotels for the period beginning on October 1, 2023 and ending on the date the Disposed Hotels were sold by the Company (the "Disposition Period") in determining same-store hotel EBITDA.


(3) Unaudited pro forma information includes operating results for 96 hotels owned as of September 30, 2024, as if all such hotels had been owned by the Company since January 1, 2024. For hotels acquired by the Company after October 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 October 1, 2023, to September 30, 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. 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.

 

Summit Hotel Properties, Inc.

Pro Forma and Same Store Data

(Unaudited)



For the Three Months Ended
September 30,


For the Nine Months Ended
September 30,



2024


2023


2024


2023

Pro Forma (1)









Rooms sold


966,019


977,432


2,904,496


2,858,359

Rooms available


1,311,563


1,311,521


3,906,155


3,891,676

Occupancy


73.7 %


74.5 %


74.4 %


73.4 %

ADR


$          162.95


$          160.88


$     168.67


$     168.10

RevPAR


$          120.02


$          119.90


$     125.41


$     123.47










Occupancy change


(1.2) %




1.2 %



ADR change


1.3 %




0.3 %



RevPAR change


0.1 %




1.6 %























For the Three Months Ended

September 30,


For the Nine Months
Ended September 30,



2024


2023


2024


2023

Same-Store (2)









Rooms sold


956,116


966,097


2,871,356


2,824,349

Rooms available


1,296,199


1,296,157


3,860,397


3,846,085

Occupancy


73.8 %


74.5 %


74.4 %


73.4 %

ADR


$          163.06


$          161.11


$     168.35


$     167.80

RevPAR


$          120.28


$          120.08


$     125.22


$     123.22










Occupancy change


(1.0) %




1.3 %



ADR change


1.2 %




0.3 %



RevPAR change


0.2 %




1.6 %



(1) Unaudited pro forma information includes operating results for 96 hotels owned as of September 30, 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 94 hotels owned by the Company as of January 1, 2023, and at all times during the three and nine months ended September 30, 2024, and 2023.

 

Summit Hotel Properties, Inc.

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

(In thousands)

(Unaudited)








Low


High

Net income


$             31,000


$             38,600

Depreciation and amortization


146,800


146,800

Interest expense


82,000


81,900

Interest income


(600)


(600)

Income tax expense


2,500


2,500

EBITDA


261,700


269,200

Gain on disposal of assets and other dispositions, net


(30,100)


(30,100)

EBITDAre


231,600


239,100

Equity-based compensation


8,300


8,300

Debt transaction costs


(2,200)


(2,200)

Other non-cash items, net


(100)


(100)

Loss related to non-controlling interests in consolidated joint ventures


4,100


4,500

Adjustments related to non-controlling interests in consolidated joint ventures


(53,700)


(55,600)

Adjusted EBITDAre


$           188,000


$           194,000

 

Summit Hotel Properties, Inc.

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

(In thousands except per share and unit)

(Unaudited)








FYE 2024 Outlook



Low


High

Net income


$             31,000


$             38,600

Preferred dividends


(15,900)


(15,900)

Distributions to and accretion of redeemable non-controlling interests


(2,600)


(2,600)

Loss related to non-controlling interests in consolidated joint ventures


4,100


4,500

Net income applicable to Common Stock and Common Units


16,600


24,600

Real estate-related depreciation


143,300


143,300

Gain on disposal of assets and other dispositions, net


(30,100)


(30,100)

Adjustments related to non-controlling interests in consolidated joint ventures


(30,900)


(30,900)

FFO applicable to Common Stock and Common Units


98,900


106,900

Amortization of debt issuance costs


6,600


6,600

Amortization of franchise fees


600


600

Equity-based compensation


8,300


8,300

Debt transaction costs


(2,200)


(2,200)

Other non-cash items, net


2,800


2,800

Adjustments related to non-controlling interests in consolidated joint ventures


(2,000)


(2,000)

AFFO applicable to Common Stock and Common Units


$           113,000


$           121,000

Weighted average diluted shares of Common Stock and Common Units for FFO and
AFFO


123,400


123,400

FFO per Common Stock and Common Units


$                  0.80


$                  0.87

AFFO per Common Stock and Common Units


$                  0.92


$                  0.98

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) Q3 2024 RevPAR performance?

Summit Hotel Properties reported Q3 2024 Pro forma RevPAR increased 0.1% to $120.02, with ADR up 1.3% to $162.95 and occupancy down 1.2% to 73.7%.

How much did Summit Hotel Properties (INN) sell Four Points San Francisco Airport for?

Summit Hotel Properties sold the Four Points San Francisco Airport hotel for $17.7 million in October 2024.

What is Summit Hotel Properties' (INN) dividend for Q3 2024?

Summit Hotel Properties declared a quarterly cash dividend of $0.08 per share, representing an annualized dividend yield of 5.2% based on the November 1, 2024 closing price.

What is Summit Hotel Properties' (INN) revised outlook for 2024?

Summit Hotel Properties revised its 2024 outlook with Pro forma RevPAR growth of 1-2%, Adjusted EBITDAre of $188-194 million, and Adjusted FFO per diluted unit of $0.92-0.98.

Summit Hotel Properties, Inc.

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