SUMMIT HOTEL PROPERTIES REPORTS THIRD QUARTER 2025 RESULTS
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
Year-to-Date 2025 Summary
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):
For the Three Months
Ended September 30,
For the Nine Months
Ended September 30,
2025
2024
2025
2024
Net (loss) income attributable to common stockholders
$ (11,301)
$ (4,272)
$ (17,597)
$ 24,461
Net (loss) income per diluted share
$ (0.11)
$ (0.04)
$ (0.17)
$ 0.21
Total revenues
$ 177,117
$ 176,807
$ 554,512
$ 558,852
EBITDAre (1)
$ 46,166
$ 53,745
$ 165,665
$ 184,699
Adjusted EBITDAre (1)
$ 39,263
$ 45,340
$ 135,189
$ 150,061
FFO (1)
$ 16,289
$ 23,135
$ 66,371
$ 83,557
Adjusted FFO (1)
$ 21,253
$ 27,610
$ 81,319
$ 93,976
FFO per diluted share and unit (1)
$ 0.13
$ 0.19
$ 0.54
$ 0.67
Adjusted FFO per diluted share and unit (1)
$ 0.17
$ 0.22
$ 0.66
$ 0.76
Pro Forma (2)
RevPAR
$ 116.57
$ 121.62
$ 123.42
$ 126.45
RevPAR Growth
(4.2) %
(2.4) %
Hotel EBITDA
$ 54,118
$ 62,180
$ 188,144
$ 204,344
Hotel EBITDA Margin
30.6 %
34.1 %
33.9 %
36.1 %
Hotel EBITDA Margin Change
(351) bps
(221) bps
Same Store (3)
RevPAR
$ 115.77
$ 120.23
$ 123.32
$ 125.82
RevPAR Growth
(3.7) %
(2.0) %
Hotel EBITDA
$ 51,993
$ 59,615
$ 182,980
$ 198,436
Hotel EBITDA Margin
30.3 %
33.9 %
33.9 %
36.2 %
Hotel EBITDA Margin Change
(356) bps
(229) bps
(1)
See tables later in this press release for a discussion and reconciliation of net (loss) income to non-GAAP financial measures, including earnings before interest, taxes, depreciation, and amortization ("EBITDA"), EBITDAre, adjusted EBITDAre, funds from operations ("FFO"), FFO per diluted share and unit, adjusted FFO ("AFFO"), and AFFO per diluted share and unit, as well as a reconciliation of operating income to hotel EBITDA. See "Non-GAAP Financial Measures" at the end of this release.
(2)
Unless stated otherwise in this release, all pro forma information includes operating and financial results for 97 hotels owned as of September 30, 2025, as if each hotel had been owned by the Company since January 1, 2024 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, 2024, 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 95 hotels owned as of January 1, 2024 and at all times during the three and nine months ended September 30, 2025, and 2024.
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.
Sold Hotels
Keys
Date
Price (1)
Forgone
Capex (1)(2)
RevPAR (3)
T-12 NOI Cap
Rate Including
Capex
Summit
Ownership
Percentage
Courtyard - Kansas City
Country Club Plaza
123
Oct 2025
$ 19,000
$ 5,500
$ 81
1.4 %
100 %
Courtyard - Amarillo
Downtown
107
Oct 2025
20,000
4,700
97
7.3 %
51 %
Total
230
$ 39,000
$ 10,200
$ 89
4.3 %
(4)
(1)
In thousands.
(2)
Reflects estimated near-term foregone capital expenditures for dispositions.
(3)
Reflects RevPAR for the twelve-month period immediately prior to sale.
(4)
Blended
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:
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:
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.
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.
Summit Hotel Properties, Inc.
Consolidated Balance Sheets
(In thousands)
September 30, 2025
December 31, 2024
(Unaudited)
ASSETS
Investments in lodging property, net
$ 2,677,174
$ 2,746,765
Investment in lodging property under development
—
7,617
Assets held for sale, net
31,548
1,225
Cash and cash equivalents
41,135
40,637
Restricted cash
6,270
7,721
Right-of-use assets, net
32,482
33,309
Trade receivables, net
19,022
18,625
Prepaid expenses and other
14,319
9,580
Deferred charges, net
10,335
6,460
Other assets
16,195
24,291
Total assets
$ 2,848,480
$ 2,896,230
LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS
AND EQUITY
Liabilities:
Debt, net of debt issuance costs
$ 1,421,777
$ 1,396,710
Lease liabilities, net
24,421
24,871
Accounts payable
9,859
7,450
Accrued expenses and other
92,907
82,153
Total liabilities
1,548,964
1,511,184
Redeemable non-controlling interests
50,219
50,219
Total stockholders' equity
875,794
909,545
Non-controlling interests
373,503
425,282
Total equity
1,249,297
1,334,827
Total liabilities, redeemable non-controlling interests and equity
$ 2,848,480
$ 2,896,230
Summit Hotel Properties, Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
For the Three Months
Ended September 30,
For the Nine Months
Ended September 30,
2025
2024
2025
2024
Revenues:
Room
$ 156,323
$ 157,408
$ 490,653
$ 497,864
Food and beverage
10,017
9,272
32,202
30,174
Other
10,777
10,127
31,657
30,814
Total revenues
177,117
176,807
554,512
558,852
Expenses:
Room
38,958
37,286
114,256
111,303
Food and beverage
8,217
7,289
24,596
23,130
Other lodging property operating expenses
58,575
56,330
174,440
170,061
Property taxes, insurance and other
14,106
13,250
41,123
40,822
Management fees
3,142
2,728
12,048
12,059
Depreciation and amortization
37,634
36,708
112,123
109,965
Corporate general and administrative
7,845
7,473
24,696
24,488
Transaction costs
—
10
—
10
Total expenses
168,477
161,074
503,282
491,838
(Loss) gain on disposal of assets, net
(57)
22
(136)
28,439
Operating income
8,583
15,755
51,094
95,453
Other income (expense):
Interest expense
(20,676)
(20,428)
(61,260)
(62,840)
Interest income
259
450
836
1,473
Gain on extinguishment of debt
—
—
—
3,000
Other (expense) income, net
(278)
999
1,810
3,813
Total other expense, net
(20,695)
(18,979)
(58,614)
(54,554)
(Loss) income from continuing operations before income taxes
(12,112)
(3,224)
(7,520)
40,899
Income tax benefit (expense)
352
(332)
(1,580)
(2,924)
Net (loss) income
(11,760)
(3,556)
(9,100)
37,975
Less - Loss attributable to non-controlling interests
(5,083)
(3,908)
(5,379)
(362)
Net (loss) income attributable to Summit Hotel Properties, Inc.
before preferred dividends
(6,677)
352
(3,721)
38,337
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
$ (11,301)
$ (4,272)
$ (17,597)
$ 24,461
(Loss) income per common share:
Basic
$ (0.11)
$ (0.04)
$ (0.17)
$ 0.23
Diluted
$ (0.11)
$ (0.04)
$ (0.17)
$ 0.21
Weighted-average common shares outstanding:
Basic
105,889
106,033
107,169
105,891
Diluted
105,889
106,033
107,169
150,003
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,
2025
2024
2025
2024
Net (loss) income
$ (11,760)
$ (3,556)
$ (9,100)
$ 37,975
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 interests in consolidated joint
ventures
3,565
3,274
3,051
4,011
Net (loss) income applicable to common shares and Common
Units
(12,819)
(4,906)
(19,925)
28,110
Real estate-related depreciation
37,064
35,721
110,421
106,590
Loss (gain) on disposal of assets and other dispositions, net
57
(22)
136
(28,439)
FFO adjustments related to non-controlling interests in consolidated
joint ventures
(8,013)
(7,658)
(24,261)
(22,704)
FFO applicable to common shares and Common Units
16,289
23,135
66,371
83,557
Amortization of deferred financing costs
1,929
1,640
5,279
4,880
Amortization of franchise fees
180
169
530
494
Amortization of intangible assets, net
263
698
787
2,520
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)
Deferred tax (benefit) expense
(532)
—
636
(3)
Other
885
604
885
966
AFFO adjustments related to non-controlling interests in consolidated
joint ventures
(711)
(786)
(1,829)
(1,727)
AFFO applicable to common shares and Common Units
$ 21,253
$ 27,610
$ 81,319
$ 93,976
FFO per share of common share/Common Unit
$ 0.13
$ 0.19
$ 0.54
$ 0.67
AFFO per common share/Common Unit
$ 0.17
$ 0.22
$ 0.66
$ 0.76
Weighted-average diluted common shares/Common Units
121,635
124,580
123,211
124,389
(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.
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,
2025
2024
2025
2024
Weighted average common shares outstanding - diluted
105,889
106,033
107,169
150,003
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
stock issuable upon conversion of convertible debt (3)
—
—
—
(25,614)
Non-GAAP weighted diluted share of common stock and
Common Units (3)
121,635
124,580
123,211
124,389
(1)
The weighted-average diluted shares of Common Stock and Common Units used to calculate FFO and AFFO per share of Common Stock and Common Units for the three months ended September 30, 2025 and 2024 and the nine months ended September 30, 2025 includes the dilutive effect of our outstanding restricted stock awards. These shares were excluded from our weighted-average shares outstanding used to calculate net loss per share because they would have been antidilutive.
(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.
(3)
The weighted-average shares of Common Stock and Common Units used to calculate FFO and AFFO per share of Common Stock and Common Unit for the three and nine months ended September 30, 2025 and 2024 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,
2025
2024
2025
2024
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
EBITDA
46,109
53,767
165,529
213,138
Loss (gain) on disposal of assets and other dispositions, net
57
(22)
136
(28,439)
EBITDAre
46,166
53,745
165,665
184,699
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
ventures
3,565
3,274
3,051
4,011
Adjustments related to non-controlling interests in consolidated joint
ventures
(14,174)
(14,313)
(42,685)
(42,542)
Adjusted EBITDAre
$ 39,263
$ 45,340
$ 135,189
$ 150,061
(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: (1)
2025
2024
2025
2024
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 revenues
177,117
182,537
554,512
565,468
Pro forma total hotel operating expenses
122,999
120,357
366,368
361,124
Pro forma hotel EBITDA
$ 54,118
$ 62,180
$ 188,144
$ 204,344
Pro forma hotel EBITDA Margin
30.6 %
34.1 %
33.9 %
36.1 %
Reconciliations of Non-GAAP financial measures to comparable GAAP financial measures
Revenue:
Total revenues
$ 177,117
$ 176,807
$ 554,512
$ 558,852
Total revenues - acquisitions
—
6,626
—
17,257
Total revenues - dispositions
—
(896)
—
(10,641)
Pro forma total revenues (1)
177,117
182,537
554,512
565,468
Hotel Operating Expenses:
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)
Pro forma hotel operating expense (1)
122,999
120,357
366,368
361,124
Hotel EBITDA:
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
54,119
59,924
188,049
201,477
Hotel EBITDA - acquisitions (2)
(2,125)
—
(5,164)
—
Hotel EBITDA - dispositions (3)
(1)
(309)
95
(3,041)
Same Store hotel EBITDA
51,993
59,615
182,980
198,436
Hotel EBITDA - acquisitions
2,125
2,565
5,164
5,908
Pro forma hotel EBITDA (1)
$ 54,118
$ 62,180
$ 188,144
$ 204,344
(1)
Unaudited pro forma information includes operating results for 97 hotels owned as of September 30, 2025, as if all such hotels had been owned by the Company since January 1, 2024. For hotels acquired by the Company after January 1, 2024 (the "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, 2024, to September 30, 2025. The financial results for the Acquired Hotels include information provided by the third-party owner of such Acquired Hotel prior to purchase by the Company and have not been audited or reviewed by our auditors or adjusted by us. For any hotels sold by the Company after January 1, 2024 (the "Disposed Hotels"), the Company excludes the financial results of each of the Disposed Hotels from January 1, 2024 to the date the Disposed Hotels were sold by the Company in determining pro forma total revenues and pro forma hotel operating expenses. The pro forma information is included to enable comparison of results for the current reporting period to results for the comparable period of the prior year and are not indicative of future results.
(2)
For any hotels acquired by the Company after January 1, 2024, 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, 2025 (the "Acquisition Period") in determining same-store hotel EBITDA.
(3)
For hotels sold by the Company between January 1, 2024, and September 30, 2025, the Company has excluded the financial results of each of the Disposed Hotels for the period beginning on January 1, 2024, and ending on the date the Disposed Hotels were sold by the Company (the "Disposition Period") in determining same-store hotel EBITDA.
Summit Hotel Properties, Inc.
Pro Forma Hotel Operating Data
(Unaudited)
(In thousands, except operating statistics)
2024
2025
Trailing Twelve
Months Ended
September 30, 2025
Pro Forma Operating Data: (1)
Q4
Q1
Q2
Q3
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 revenues
177,254
184,478
192,917
177,117
731,766
Pro forma total hotel operating expenses
116,886
118,873
124,496
122,999
483,254
Pro forma hotel EBITDA
$ 60,368
$ 65,605
$ 68,421
$ 54,118
$ 248,512
Pro forma hotel EBITDA Margin
34.1 %
35.6 %
35.5 %
30.6 %
34.0 %
Pro Forma Statistics: (1)
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
71.5 %
72.2 %
77.7 %
73.7 %
73.8 %
ADR
$ 164.00
$ 173.06
$ 165.70
$ 158.25
$ 165.18
RevPAR
$ 117.21
$ 124.99
$ 128.79
$ 116.57
$ 121.85
Actual Statistics:
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
71.2 %
72.2 %
77.7 %
73.7 %
73.7 %
ADR
$ 163.47
$ 173.06
$ 165.70
$ 158.25
$ 165.06
RevPAR
$ 116.42
$ 124.99
$ 128.79
$ 116.57
$ 121.68
Reconciliations of Non-GAAP financial measures to comparable GAAP financial measures
Revenue:
Total revenues
$ 172,931
$ 184,478
$ 192,917
$ 177,117
$ 727,443
Total revenues - acquisitions
4,586
—
—
—
4,586
Total revenues - dispositions
(263)
—
—
—
(263)
Pro forma total revenues (1)
177,254
184,478
192,917
177,117
731,766
Hotel Operating Expenses:
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)
Pro forma hotel operating expenses (1)
116,886
118,873
124,496
122,999
483,254
Hotel EBITDA:
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
58,161
65,627
68,303
54,119
246,210
Hotel EBITDA - acquisitions (2)
(89)
(429)
(2,610)
(2,125)
(5,253)
Hotel EBITDA - dispositions (3)
(118)
(22)
118
(1)
(23)
Same store hotel EBITDA
57,954
65,176
65,811
51,993
240,934
Hotel EBITDA - acquisitions
2,414
429
2,610
2,125
7,578
Pro forma hotel EBITDA (1)
$ 60,368
$ 65,605
$ 68,421
$ 54,118
$ 248,512
(1)
Unaudited pro forma information includes operating results for 97 hotels owned as of September 30, 2025 as if all such hotels had been owned by the Company since October 1, 2024. For Acquired Hotels, the Company has included in the pro forma information the financial results of each of the hotels acquired for the period from October 1, 2024, to September 30, 2025. The financial results for the hotels acquired include information provided by the third-party owner of such hotel prior to purchase by the Company and have not been audited or reviewed by our auditors or adjusted by us. For any hotels sold by the Company after October 1, 2024, the Company excludes the financial results of each of those hotels from October 1, 2024 to the date the hotels were sold by the Company in determining pro forma total revenues and pro forma hotel operating expenses. The pro forma information is included to enable comparison of results for the current reporting period to results for the comparable period of the prior year and are not indicative of future results.
(2)
For any hotels acquired by the Company after October 1, 2024, 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, 2025 in determining same-store hotel EBITDA.
(3)
For hotels sold by the Company between October 1, 2024, and September 30, 2025, the Company has excluded the financial results of each of the hotels for the period beginning on October 1, 2024, and ending on the date the hotels were sold by the Company in determining same-store hotel EBITDA.
Summit Hotel Properties, Inc.
Pro Forma and Same Store Data
(Unaudited)
For the Three Months
Ended September 30,
For the Nine Months
Ended September 30,
2025
2024
2025
2024
Pro Forma (1)
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
Occupancy change
(0.5) %
(0.3) %
ADR change
(3.6) %
(2.1) %
RevPAR change
(4.2) %
(2.4) %
For the Three Months
Ended September 30,
For the Nine Months
Ended September 30,
2025
2024
2025
2024
Same-Store (2)
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
Occupancy change
(0.3) %
— %
ADR change
(3.4) %
(2.0) %
RevPAR change
(3.7) %
(2.0) %
(1)
Unaudited pro forma information includes operating results for 97 hotels owned as of September 30, 2025, as if each hotel had been owned by the Company since January 1, 2024. 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 95 hotels owned by the Company as of January 1, 2024, and at all times during the three and nine months ended September 30, 2025, and 2024.
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).
SOURCE Summit Hotel Properties, Inc.