PR Newswire
Completed Sale of Two Assets for $39.0 million at Blended Cap Rate of 4.3 percent Subsequent to Quarter End
Completed Refinancing of $400 Million NCI Term Loan at Accretive Pricing to Further Strengthen Balance Sheet
AUSTIN, Texas
, Nov. 4, 2025 /PRNewswire/ — Summit Hotel Properties, Inc. (NYSE: INN) (the “Company”), today announced results for the three and nine months ended September 30, 2025.
“Operating fundamentals in the third quarter remained relatively stable compared to the trends we observed in the second quarter, as reduced government demand and slower international inbound travel continued to pressure average daily rates. Despite this challenging backdrop, we continued to grow market share, with our RevPAR index increasing 140 basis points to ~116% in the third quarter. Our disciplined approach to cost management also resulted in pro forma operating expenses increasing less than 2% during the quarter and just over 1.5% year-to-date. Encouragingly, our outlook for the remainder of the year reflects expectations for sequential improvement in operating trends in the fourth quarter, and our longer-term outlook for better operating fundamentals is positive as the industry will benefit from a lack of new supply growth,” said Jonathan P. Stanner, President and Chief Executive Officer.
“We also continued to strengthen our balance sheet through the sale of two hotels for gross proceeds of $39.0 million subsequent to quarter end. The combined sales price reflects a blended trailing twelve-month net operating income capitalization rate of 4.3%. These transactions extend our successful capital recycling strategy, as we have sold 12 hotels since 2023, generating approximately $187 million of gross proceeds at a blended capitalization rate of 4.5%, inclusive of foregone capital expenditures. The strength of our balance sheet, which effectively has no debt maturities until 2028, together with our high-quality portfolio of well-located hotels, positions the Company favorably for long-term growth,” continued Mr. Stanner.
Third Quarter 2025 Summary
- Net Loss: Net loss attributable to common stockholders was $11.3 million, or $0.11 per diluted share, compared to net loss of $4.3 million, or $0.04 per diluted share, for the third quarter of 2024.
- Same Store RevPAR: Same store RevPAR decreased 3.7 percent to $115.77 compared to the third quarter of 2024. Same store ADR decreased 3.4 percent to $157.62, and same store occupancy decreased 0.3 percent to 73.5 percent.
- Pro forma RevPAR: Pro forma RevPAR decreased 4.2 percent to $116.57 compared to the third quarter of 2024. Pro forma ADR decreased 3.6 percent to $158.25 compared to the same period in 2024, and pro forma occupancy decreased 0.5 percent to 73.7 percent.
- Same Store Hotel EBITDA(1): Same store hotel EBITDA decreased to $52.0 million from $59.6 million in the same period in 2024. Same store hotel EBITDA margin contracted approximately 356 basis points to 30.3 percent.
- Pro Forma Hotel EBITDA(1): Pro forma hotel EBITDA decreased to $54.1 million from $62.2 million in the same period in 2024. Pro forma hotel EBITDA margin contracted approximately 351 basis points to 30.6 percent.
- Adjusted EBITDAre(1): Adjusted EBITDAre decreased to $39.3 million from $45.3 million in the third quarter of 2024.
- Adjusted FFO(1): Adjusted FFO decreased to $21.3 million, or $0.17 per diluted share, compared to $27.6 million, or $0.22 per diluted share, in the third quarter of 2024.
Year-to-Date 2025 Summary
- Net Loss: Net loss attributable to common stockholders was $17.6 million, or $0.17 per diluted share, compared to net income of $24.5 million, or $0.21 per diluted share, in the same period of 2024.
- Same Store RevPAR: Same store RevPAR decreased 2.0 percent to $123.32 compared to the same period of 2024. Same store ADR decreased 2.0 percent to $165.46, and same store occupancy remained unchanged at 74.5 percent.
- Pro forma RevPAR: Pro forma RevPAR decreased 2.4 percent to $123.42 compared to the same period of 2024. Pro forma ADR decreased 2.1 percent to $165.56, and pro forma occupancy decreased 0.3 percent to 74.5 percent.
- Same Store Hotel EBITDA(1): Same store hotel EBITDA decreased to $183.0 million from $198.4 million, and same store hotel EBITDA margin contracted 229 basis points to 33.9 percent.
- Pro Forma Hotel EBITDA(1): Pro forma hotel EBITDA decreased to $188.1 million from $204.3 million, and pro forma hotel EBITDA margin contracted 221 basis points to 33.9 percent.
- Adjusted EBITDAre(1): Adjusted EBITDAre decreased to $135.2 million from $150.1 million in the same period of 2024.
- Adjusted FFO(1): Adjusted FFO decreased to $81.3 million, or $0.66 per diluted share, compared to $94.0 million, or $0.76 per diluted share, in the same period of 2024.
The Company’s results for the three and nine months ended September 30, 2025 and 2024 are as follows (in thousands, except per share amounts and metrics):
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Net (loss) income attributable to common stockholders |
$ (11,301) |
$ (4,272) |
$ (17,597) |
$ 24,461 |
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Net (loss) income per diluted share |
$ (0.11) |
$ (0.04) |
$ (0.17) |
$ 0.21 |
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Total revenues |
$ 177,117 |
$ 176,807 |
$ 554,512 |
$ 558,852 |
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EBITDAre (1) |
$ 46,166 |
$ 53,745 |
$ 165,665 |
$ 184,699 |
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Adjusted EBITDAre (1) |
$ 39,263 |
$ 45,340 |
$ 135,189 |
$ 150,061 |
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FFO (1) |
$ 16,289 |
$ 23,135 |
$ 66,371 |
$ 83,557 |
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Adjusted FFO (1) |
$ 21,253 |
$ 27,610 |
$ 81,319 |
$ 93,976 |
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FFO per diluted share and unit (1) |
$ 0.13 |
$ 0.19 |
$ 0.54 |
$ 0.67 |
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Adjusted FFO per diluted share and unit (1) |
$ 0.17 |
$ 0.22 |
$ 0.66 |
$ 0.76 |
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RevPAR |
$ 116.57 |
$ 121.62 |
$ 123.42 |
$ 126.45 |
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RevPAR Growth |
(4.2) % |
(2.4) % |
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Hotel EBITDA |
$ 54,118 |
$ 62,180 |
$ 188,144 |
$ 204,344 |
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Hotel EBITDA Margin |
30.6 % |
34.1 % |
33.9 % |
36.1 % |
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Hotel EBITDA Margin Change |
(351) bps |
(221) bps |
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RevPAR |
$ 115.77 |
$ 120.23 |
$ 123.32 |
$ 125.82 |
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RevPAR Growth |
(3.7) % |
(2.0) % |
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Hotel EBITDA |
$ 51,993 |
$ 59,615 |
$ 182,980 |
$ 198,436 |
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Hotel EBITDA Margin |
30.3 % |
33.9 % |
33.9 % |
36.2 % |
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Hotel EBITDA Margin Change |
(356) bps |
(229) bps |
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Transaction Activity
In October 2025, the Company completed the sale of two hotels for a combined sales price of $39.0 million, including the Courtyard Kansas City Country Club Plaza for $19.0 million and the Courtyard Amarillo Downtown, which was owned in the Company’s joint venture with GIC, for $20.0 million. The aggregate sales price for the transaction represented a blended 4.3 percent capitalization rate based on the estimated net operating income for the trailing twelve months ended September 2025 and after consideration of approximately $10.2 million of foregone near-term required capital expenditures. Net proceeds from the transaction of $24.0 million (pro-rata), which will generate a net gain on sale of approximately $6.7 million, were used to repay debt, enhance liquidity and for other general corporate purposes. The combined RevPAR for the sold hotels was $89 which is a nearly 27% discount to the current pro forma portfolio.
Since 2023, the Company and its affiliates have sold 12 hotels for a combined sales price of $187.3 million at a blended capitalization rate of approximately 4.5%, inclusive of an estimated $57.4 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 a nearly 30% discount to the current pro forma portfolio.
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Courtyard – Kansas City |
123 |
Oct 2025 |
$ 19,000 |
$ 5,500 |
$ 81 |
1.4 % |
100 % |
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Courtyard – Amarillo |
107 |
Oct 2025 |
20,000 |
4,700 |
97 |
7.3 % |
51 % |
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Capital Markets Activity
NCI Term Loan Refinancing
In July 2025, the Company, together with its joint venture partner, GIC, closed a $400.0 million senior unsecured term loan (the “2025 GIC Joint Venture Term Loan”) to refinance the previous GIC joint venture term loan that was scheduled to mature in January 2026.
The 2025 GIC Joint Venture Term Loan provides for an interest rate equal to SOFR plus 235 basis points, which represents a 50 basis point reduction from the previous loan, and has a fully extended maturity date of July 2030, subject to extensions and certain other conditions.
GIC Joint Venture Interest Rate Swaps
In August 2025, the GIC joint venture entered into two $150 million forward starting interest rate swaps to fix one-month term SOFR until January 2028. The interest rate swaps have an effective date of January 13, 2026 and a termination date of January 13, 2028. The two $150 million interest rate swaps with an average SOFR rate of 3.26% will replace $300 million of existing GIC Joint Venture interest rate swaps with an average SOFR rate of 3.49% scheduled to mature in January 2026.
Balance Sheet Summary
On a pro rata basis as of September 30, 2025, the Company had the following outstanding indebtedness and liquidity available:
- Outstanding debt of $1.1 billion with a weighted average interest rate of 4.52 percent. After giving effect to interest rate derivative agreements, $826.9 million, or 75 percent, of our outstanding debt had a fixed interest rate, and $273.5 million, or 25 percent, had a variable interest rate.
- Unrestricted cash and cash equivalents of $33.8 million.
- Total liquidity of over $280 million, including unrestricted cash and cash equivalents and revolving credit facility availability.
Common and Preferred Dividend Declaration
On October 31, 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 6.1 percent, based on the closing price of shares of the common stock on November 3, 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 November 28, 2025 to holders of record as of November 14, 2025.
2025 Outlook
While we remain confident in the long-term fundamentals in our portfolio, near-term results are being negatively affected by increased price sensitivity and continued macroeconomic volatility. We currently expect fourth quarter 2025 RevPAR growth to range from -2.0% to -2.5% as operating trends reflect sequential improvement from the second and third quarters of this year. We expect capital expenditures for full year 2025 of $60 million to $65 million on a pro rata basis.
Third Quarter 2025 Earnings Conference Call
The Company will conduct its quarterly conference call on November 5, 2025 at 9:00 AM ET.
- To access the conference call, please pre-register using this link. Registrants will receive a confirmation with dial-in details.
- 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 February 2, 2026.
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, 2025, the Company’s portfolio consisted of 95 assets, 52 of which are wholly owned, with a total of 14,347 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, 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.
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Investments in lodging property, net |
$ 2,677,174 |
$ 2,746,765 |
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Investment in lodging property under development |
— |
7,617 |
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Assets held for sale, net |
31,548 |
1,225 |
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Cash and cash equivalents |
41,135 |
40,637 |
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Restricted cash |
6,270 |
7,721 |
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Right-of-use assets, net |
32,482 |
33,309 |
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Trade receivables, net |
19,022 |
18,625 |
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Prepaid expenses and other |
14,319 |
9,580 |
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Deferred charges, net |
10,335 |
6,460 |
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Other assets |
16,195 |
24,291 |
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Total assets |
$ 2,848,480 |
$ 2,896,230 |
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Liabilities: |
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Debt, net of debt issuance costs |
$ 1,421,777 |
$ 1,396,710 |
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Lease liabilities, net |
24,421 |
24,871 |
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Accounts payable |
9,859 |
7,450 |
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Accrued expenses and other |
92,907 |
82,153 |
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Total liabilities |
1,548,964 |
1,511,184 |
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Redeemable non-controlling interests |
50,219 |
50,219 |
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Total stockholders’ equity |
875,794 |
909,545 |
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Non-controlling interests |
373,503 |
425,282 |
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Total equity |
1,249,297 |
1,334,827 |
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Total liabilities, redeemable non-controlling interests and equity |
$ 2,848,480 |
$ 2,896,230 |
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Room |
$ 156,323 |
$ 157,408 |
$ 490,653 |
$ 497,864 |
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Food and beverage |
10,017 |
9,272 |
32,202 |
30,174 |
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Other |
10,777 |
10,127 |
31,657 |
30,814 |
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Total revenues |
177,117 |
176,807 |
554,512 |
558,852 |
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Room |
38,958 |
37,286 |
114,256 |
111,303 |
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Food and beverage |
8,217 |
7,289 |
24,596 |
23,130 |
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Other lodging property operating expenses |
58,575 |
56,330 |
174,440 |
170,061 |
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Property taxes, insurance and other |
14,106 |
13,250 |
41,123 |
40,822 |
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Management fees |
3,142 |
2,728 |
12,048 |
12,059 |
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Depreciation and amortization |
37,634 |
36,708 |
112,123 |
109,965 |
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Corporate general and administrative |
7,845 |
7,473 |
24,696 |
24,488 |
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Transaction costs |
— |
10 |
— |
10 |
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Total expenses |
168,477 |
161,074 |
503,282 |
491,838 |
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(Loss) gain on disposal of assets, net |
(57) |
22 |
(136) |
28,439 |
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Operating income |
8,583 |
15,755 |
51,094 |
95,453 |
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Interest expense |
(20,676) |
(20,428) |
(61,260) |
(62,840) |
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Interest income |
259 |
450 |
836 |
1,473 |
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Gain on extinguishment of debt |
— |
— |
— |
3,000 |
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Other (expense) income, net |
(278) |
999 |
1,810 |
3,813 |
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Total other expense, net |
(20,695) |
(18,979) |
(58,614) |
(54,554) |
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(Loss) income from continuing operations before income taxes |
(12,112) |
(3,224) |
(7,520) |
40,899 |
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Income tax benefit (expense) |
352 |
(332) |
(1,580) |
(2,924) |
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(11,760) |
(3,556) |
(9,100) |
37,975 |
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Less – Loss attributable to non-controlling interests |
(5,083) |
(3,908) |
(5,379) |
(362) |
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Net (loss) income attributable to Summit Hotel Properties, Inc. |
(6,677) |
352 |
(3,721) |
38,337 |
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Less – Distributions to and accretion of redeemable non-controlling |
(656) |
(656) |
(1,970) |
(1,970) |
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Less – Preferred dividends |
(3,968) |
(3,968) |
(11,906) |
(11,906) |
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$ (11,301) |
$ (4,272) |
$ (17,597) |
$ 24,461 |
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Basic |
$ (0.11) |
$ (0.04) |
$ (0.17) |
$ 0.23 |
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Diluted |
$ (0.11) |
$ (0.04) |
$ (0.17) |
$ 0.21 |
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Basic |
105,889 |
106,033 |
107,169 |
105,891 |
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Diluted |
105,889 |
106,033 |
107,169 |
150,003 |
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Net (loss) income |
$ (11,760) |
$ (3,556) |
$ (9,100) |
$ 37,975 |
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Preferred dividends |
(3,968) |
(3,968) |
(11,906) |
(11,906) |
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Distributions to and accretion of redeemable non-controlling interests |
(656) |
(656) |
(1,970) |
(1,970) |
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Loss related to non-controlling interests in consolidated joint |
3,565 |
3,274 |
3,051 |
4,011 |
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Real estate-related depreciation |
37,064 |
35,721 |
110,421 |
106,590 |
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Loss (gain) on disposal of assets and other dispositions, net |
57 |
(22) |
136 |
(28,439) |
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FFO adjustments related to non-controlling interests in consolidated |
(8,013) |
(7,658) |
(24,261) |
(22,704) |
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Amortization of deferred financing costs |
1,929 |
1,640 |
5,279 |
4,880 |
||||
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Amortization of franchise fees |
180 |
169 |
530 |
494 |
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Amortization of intangible assets, net |
263 |
698 |
787 |
2,520 |
||||
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Equity-based compensation |
2,049 |
1,854 |
6,754 |
6,337 |
||||
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Transaction costs |
— |
10 |
— |
10 |
||||
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Debt transaction costs |
323 |
66 |
338 |
647 |
||||
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Gain on extinguishment of debt |
— |
— |
— |
(3,000) |
||||
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Non-cash interest income (1) |
— |
(134) |
— |
(400) |
||||
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Non-cash lease expense, net |
108 |
110 |
374 |
332 |
||||
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Casualty losses (gains), net |
470 |
244 |
1,194 |
(637) |
||||
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Deferred tax (benefit) expense |
(532) |
— |
636 |
(3) |
||||
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Other |
885 |
604 |
885 |
966 |
||||
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AFFO adjustments related to non-controlling interests in consolidated |
(711) |
(786) |
(1,829) |
(1,727) |
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FFO per share of common share/Common Unit |
$ 0.13 |
$ 0.19 |
$ 0.54 |
$ 0.67 |
||||
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AFFO per common share/Common Unit |
$ 0.17 |
$ 0.22 |
$ 0.66 |
$ 0.76 |
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Weighted-average diluted common shares/Common Units |
121,635 |
124,580 |
123,211 |
124,389 |
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|
|
|
|||||
|
Weighted average common shares outstanding – diluted |
105,889 |
106,033 |
107,169 |
150,003 |
||||
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Adjusted for: |
||||||||
|
Non-GAAP adjustment for restricted stock awards (1) |
2,737 |
2,604 |
2,688 |
— |
||||
|
Non-GAAP adjustment for dilutive effects of Common Units (2) |
13,009 |
15,943 |
13,354 |
— |
||||
|
Non-GAAP adjustment for dilutive effect of shares of common |
— |
— |
— |
(25,614) |
||||
|
Non-GAAP weighted diluted share of common stock and |
121,635 |
124,580 |
123,211 |
124,389 |
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|
Net (loss) income |
$ (11,760) |
$ (3,556) |
$ (9,100) |
$ 37,975 |
||||
|
Depreciation and amortization |
37,634 |
36,708 |
112,123 |
109,965 |
||||
|
Interest expense |
20,676 |
20,428 |
61,260 |
62,840 |
||||
|
Interest income on cash deposits |
(89) |
(145) |
(334) |
(566) |
||||
|
Income tax (benefit) expense |
(352) |
332 |
1,580 |
2,924 |
||||
|
|
|
|
|
|
||||
|
Loss (gain) on disposal of assets and other dispositions, net |
57 |
(22) |
136 |
(28,439) |
||||
|
|
|
|
|
|
||||
|
Amortization of key money liabilities |
(129) |
(120) |
(387) |
(362) |
||||
|
Equity-based compensation |
2,049 |
1,854 |
6,754 |
6,337 |
||||
|
Transaction costs |
— |
10 |
— |
10 |
||||
|
Debt transaction costs |
323 |
66 |
338 |
647 |
||||
|
Gain on extinguishment of debt |
— |
— |
— |
(3,000) |
||||
|
Non-cash interest income (1) |
— |
(134) |
— |
(400) |
||||
|
Non-cash lease expense, net |
108 |
110 |
374 |
332 |
||||
|
Casualty losses (gains), net |
470 |
244 |
1,194 |
(637) |
||||
|
Other |
885 |
604 |
885 |
966 |
||||
|
Loss related to non-controlling interests in consolidated joint |
3,565 |
3,274 |
3,051 |
4,011 |
||||
|
Adjustments related to non-controlling interests in consolidated joint |
(14,174) |
(14,313) |
(42,685) |
(42,542) |
||||
|
|
|
|
|
|
||||
|
|
|
|
|
||||||||
|
|
|
|||||||
|
|
|
|
|
|
||||
|
Pro forma room revenue |
$ 156,323 |
$ 162,848 |
$ 490,653 |
$ 504,244 |
||||
|
Pro forma other hotel operations revenue |
20,794 |
19,689 |
63,859 |
61,224 |
||||
|
|
|
|
|
|
||||
|
Pro forma total hotel operating expenses |
122,999 |
120,357 |
366,368 |
361,124 |
||||
|
|
|
|
|
|
||||
|
Pro forma hotel EBITDA Margin |
|
|
|
|
||||
|
|
||||||||
|
|
||||||||
|
Total revenues |
$ 177,117 |
$ 176,807 |
$ 554,512 |
$ 558,852 |
||||
|
Total revenues – acquisitions |
— |
6,626 |
— |
17,257 |
||||
|
Total revenues – dispositions |
— |
(896) |
— |
(10,641) |
||||
|
|
|
|
|
|
||||
|
|
||||||||
|
Hotel operating expenses |
$ 122,998 |
$ 116,883 |
$ 366,463 |
$ 357,375 |
||||
|
Hotel operating expenses – acquisitions |
— |
4,061 |
— |
11,349 |
||||
|
Hotel operating expenses – dispositions |
1 |
(587) |
(95) |
(7,600) |
||||
|
|
|
|
|
|
||||
|
|
||||||||
|
Operating income |
8,583 |
15,755 |
51,094 |
95,453 |
||||
|
Loss (gain) on disposal of assets and other dispositions, net |
57 |
(22) |
136 |
(28,439) |
||||
|
Transaction costs |
— |
10 |
— |
10 |
||||
|
Corporate general and administrative |
7,845 |
7,473 |
24,696 |
24,488 |
||||
|
Depreciation and amortization |
37,634 |
36,708 |
112,123 |
109,965 |
||||
|
|
|
|
|
|
||||
|
Hotel EBITDA – acquisitions (2) |
(2,125) |
— |
(5,164) |
— |
||||
|
Hotel EBITDA – dispositions (3) |
(1) |
(309) |
95 |
(3,041) |
||||
|
|
|
|
|
|
||||
|
Hotel EBITDA – acquisitions |
2,125 |
2,565 |
5,164 |
5,908 |
||||
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
||||||||
|
|
|
|
|
|
||||||
|
Pro forma room revenue |
$ 156,955 |
$ 163,731 |
$ 170,599 |
$ 156,323 |
$ 647,608 |
|||||
|
Pro forma other hotel operations revenue |
20,299 |
20,747 |
22,318 |
20,794 |
84,158 |
|||||
|
|
|
|
|
|
|
|||||
|
Pro forma total hotel operating expenses |
116,886 |
118,873 |
124,496 |
122,999 |
483,254 |
|||||
|
|
|
|
|
|
|
|||||
|
Pro forma hotel EBITDA Margin |
|
|
|
|
|
|||||
|
|
||||||||||
|
Rooms sold |
957,027 |
946,105 |
1,029,583 |
987,833 |
3,920,548 |
|||||
|
Rooms available |
1,339,060 |
1,309,950 |
1,324,598 |
1,341,084 |
5,314,692 |
|||||
|
Occupancy |
|
|
|
|
|
|||||
|
ADR |
$ 164.00 |
$ 173.06 |
$ 165.70 |
$ 158.25 |
$ 165.18 |
|||||
|
RevPAR |
$ 117.21 |
$ 124.99 |
$ 128.79 |
$ 116.57 |
$ 121.85 |
|||||
|
|
||||||||||
|
Rooms sold |
935,012 |
946,105 |
1,029,583 |
987,833 |
3,898,533 |
|||||
|
Rooms available |
1,312,953 |
1,309,950 |
1,324,598 |
1,341,084 |
5,288,585 |
|||||
|
Occupancy |
|
|
|
|
|
|||||
|
ADR |
$ 163.47 |
$ 173.06 |
$ 165.70 |
$ 158.25 |
$ 165.06 |
|||||
|
RevPAR |
$ 116.42 |
$ 124.99 |
$ 128.79 |
$ 116.57 |
$ 121.68 |
|||||
|
|
||||||||||
|
|
||||||||||
|
Total revenues |
$ 172,931 |
$ 184,478 |
$ 192,917 |
$ 177,117 |
$ 727,443 |
|||||
|
Total revenues – acquisitions |
4,586 |
— |
— |
— |
4,586 |
|||||
|
Total revenues – dispositions |
(263) |
— |
— |
— |
(263) |
|||||
|
|
|
|
|
|
|
|||||
|
|
||||||||||
|
Hotel operating expenses |
114,770 |
118,851 |
124,614 |
122,998 |
481,233 |
|||||
|
Hotel operating expenses – acquisitions |
2,261 |
— |
— |
— |
2,261 |
|||||
|
Hotel operating expenses – dispositions |
(145) |
22 |
(118) |
1 |
(240) |
|||||
|
|
|
|
|
|
|
|||||
|
|
||||||||||
|
Operating income |
8,037 |
19,827 |
22,684 |
8,583 |
59,131 |
|||||
|
(Gain) loss on disposal of assets, net |
(473) |
(1) |
80 |
57 |
(337) |
|||||
|
Loss on impairment and write-down of assets |
6,723 |
— |
— |
— |
6,723 |
|||||
|
Corporate general and administrative |
7,403 |
8,571 |
8,280 |
7,845 |
32,099 |
|||||
|
Depreciation and amortization |
36,471 |
37,230 |
37,259 |
37,634 |
148,594 |
|||||
|
|
|
|
|
|
|
|||||
|
Hotel EBITDA – acquisitions (2) |
(89) |
(429) |
(2,610) |
(2,125) |
(5,253) |
|||||
|
Hotel EBITDA – dispositions (3) |
(118) |
(22) |
118 |
(1) |
(23) |
|||||
|
|
|
|
|
|
|
|||||
|
Hotel EBITDA – acquisitions |
2,414 |
429 |
2,610 |
2,125 |
7,578 |
|||||
|
|
|
|
|
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|||||||
|
|
|
|
|
|||||
|
|
||||||||
|
Rooms sold |
987,833 |
991,580 |
2,963,521 |
2,982,405 |
||||
|
Rooms available |
1,341,084 |
1,338,979 |
3,975,632 |
3,987,807 |
||||
|
Occupancy |
73.7 % |
74.1 % |
74.5 % |
74.8 % |
||||
|
ADR |
$ 158.25 |
$ 164.23 |
$ 165.56 |
$ 169.07 |
||||
|
RevPAR |
$ 116.57 |
$ 121.62 |
$ 123.42 |
$ 126.45 |
||||
|
|
|
|
||||||
|
|
|
|
||||||
|
|
|
|
||||||
|
|
|
|||||||
|
|
|
|
|
|||||
|
|
||||||||
|
Rooms sold |
958,077 |
959,772 |
2,882,081 |
2,890,624 |
||||
|
Rooms available |
1,304,376 |
1,302,271 |
3,866,705 |
3,878,481 |
||||
|
Occupancy |
73.5 % |
73.7 % |
74.5 % |
74.5 % |
||||
|
ADR |
$ 157.62 |
$ 163.14 |
$ 165.46 |
$ 168.82 |
||||
|
RevPAR |
$ 115.77 |
$ 120.23 |
$ 123.32 |
$ 125.82 |
||||
|
|
|
|
||||||
|
|
|
|
||||||
|
|
|
|
||||||
|
|
|
|
|
|
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 on-going 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 on-going 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.
