SUMMIT HOTEL PROPERTIES REPORTS SECOND QUARTER 2025 RESULTS
Second Quarter Operating Income of $22.7 Million; AFFO of $32.7 Million or $0.27 per Share
Repurchased 3.6 Million Shares for $15.4 Million, an Average of $4.30 per Share
Completed Two Significant Debt Financings to Extend Maturity Dates and Enhance Corporate Liquidity
AUSTIN, Texas, Aug. 5, 2025 /PRNewswire/ -- Summit Hotel Properties, Inc. (NYSE:INN) (the "Company"), today announced results for the three and six months ended June 30, 2025.
"Despite a challenging operating backdrop in the second quarter, we continued to successfully execute on a number of key strategic priorities. RevPAR index, our best measure of market share, increased nearly 150 basis points to 115% during the quarter and year-to-date operating expenses have increased a mere 1.5 percent as we continue to effectively manage expenses and benefit from the efficient operating model of our hotel portfolio. While RevPAR in our same store portfolio declined 3.6 percent during the second quarter, this was significantly influenced by difficult comparisons to robust special event driven demand that benefited the second quarter of last year. Overall demand across the Company's portfolio remains stable as absolute occupancy in the second quarter approached record highs. Our portfolio of high quality, well located hotels is in excellent physical condition and we believe remains well positioned for longer-term, outsized growth," said Jonathan P. Stanner, President and Chief Executive Officer.
"During the quarter, we also continued to strengthen our balance sheet with the closing of two additional financings, with improved pricing that will supplement our future free cash flow and earnings profiles. With these closings and the in-place delayed draw term loan to fund the repayment of our convertible notes early next year, we now effectively have no debt maturities until 2028 and over $310 million of corporate liquidity. Finally, in April, our Board of Directors approved a $50 million share repurchase program, of which we utilized $15.4 million in the second quarter to repurchase 3.6 million common shares at an average price of $4.30 per share. These well-executed repurchases represent an 15% discount to the current trading price," continued Mr. Stanner.
Second Quarter 2025 Summary
Net Loss: Net loss attributable to common stockholders was $1.6 million, or $0.02 per diluted share, compared to net income of $30.8 million, or $0.23 per diluted share, for the second quarter of 2024.
Pro forma RevPAR: Pro forma RevPAR decreased 3.8 percent to $128.79 compared to the second quarter of 2024. Pro forma ADR decreased 3.3 percent to $165.70 compared to the same period in 2024, and pro forma occupancy decreased 0.6 percent to 77.7 percent.
Same Store RevPAR: Same store RevPAR decreased 3.6 percent to $128.07 compared to the second quarter of 2024. Same store ADR decreased 3.3 percent to $165.04, and same store occupancy decreased 0.4 percent to 77.6 percent.
Pro Forma Hotel EBITDA(1): Pro forma hotel EBITDA decreased to $68.4 million from $75.7 million in the same period in 2024. Pro forma hotel EBITDA margin contracted approximately 266 basis points to 35.5 percent.
Same Store Hotel EBITDA(1): Same store hotel EBITDA decreased to $65.8 million from $73.1 million in the same period in 2024. Same store hotel EBITDA margin contracted approximately 289 basis points to 35.2 percent.
Adjusted EBITDAre(1): Adjusted EBITDAre decreased to $50.9 million from $55.9 million in the second quarter of 2024.
Adjusted FFO(1): Adjusted FFO decreased to $32.7 million, or $0.27 per diluted share, compared to $36.4 million, or $0.29 per diluted share, in the second quarter of 2024.
Year-to-Date 2025 Summary
Net Loss: Net loss attributable to common stockholders was $6.3 million, or $0.06 per diluted share, compared to net income of $28.7 million, or $0.21 per diluted share, in the same period of 2024.
Pro forma RevPAR: Pro forma RevPAR decreased 1.5 percent to $126.90 compared to the same period of 2024. Pro forma ADR decreased 1.3 percent to $169.22, and pro forma occupancy decreased 0.2 percent to 75.0 percent.
Same Store RevPAR: Same store RevPAR decreased 1.1 percent to $127.17 compared to the same period of 2024. Same store ADR decreased 1.3 percent to $169.36, and same store occupancy increased 0.2 percent to 75.1 percent.
Pro Forma Hotel EBITDA(1): Pro forma hotel EBITDA decreased to $134.0 million from $142.2 million, and pro forma hotel EBITDA margin contracted 161 basis points to 35.5 percent.
Same Store Hotel EBITDA(1): Same store hotel EBITDA decreased to $131.0 million from $138.8 million, and same store hotel EBITDA margin contracted 172 basis points to 35.6 percent.
Adjusted EBITDAre(1): Adjusted EBITDAre decreased to $95.9 million from $104.7 million in the same period of 2024.
Adjusted FFO(1): Adjusted FFO decreased to $60.1 million, or $0.49 per diluted share, compared to $66.4 million, or $0.54 per diluted share, in the same period of 2024.
The Company's results for the three and six months ended June 30, 2025 and 2024 are as follows (in thousands, except per share amounts and metrics):
For the Three MonthsEnded June 30,
For the Six MonthsEnded June 30,
2025
2024
2025
2024
Net (loss) income attributable to common stockholders
$ (1,612)
$ 30,849
$ (6,296)
$ 28,733
Net (loss) income per diluted share
$ (0.02)
$ 0.23
$ (0.06)
$ 0.21
Total revenues
$ 192,917
$ 193,903
$ 377,395
$ 382,045
EBITDAre (1)
$ 61,050
$ 69,755
$ 119,499
$ 130,954
Adjusted EBITDAre (1)
$ 50,919
$ 55,920
$ 95,926
$ 104,721
FFO (1)
$ 26,886
$ 34,934
$ 50,082
$ 60,422
Adjusted FFO (1)
$ 32,707
$ 36,370
$ 60,066
$ 66,366
FFO per diluted share and unit (1)
$ 0.22
$ 0.28
$ 0.40
$ 0.49
Adjusted FFO per diluted share and unit (1)
$ 0.27
$ 0.29
$ 0.49
$ 0.54
Pro Forma (2)
RevPAR
$ 128.79
$ 133.94
$ 126.90
$ 128.89
RevPAR Contraction
(3.8) %
(1.5) %
Hotel EBITDA
$ 68,421
$ 75,664
$ 134,026
$ 142,164
Hotel EBITDA Margin
35.5 %
38.1 %
35.5 %
37.1 %
Hotel EBITDA Margin Change
(266) bps
(161) bps
Same Store (3)
RevPAR
$ 128.07
$ 132.89
$ 127.17
$ 128.65
RevPAR Contraction
(3.6) %
(1.1) %
Hotel EBITDA
$ 65,811
$ 73,087
$ 130,987
$ 138,821
Hotel EBITDA Margin
35.2 %
38.1 %
35.6 %
37.3 %
Hotel EBITDA Margin Change
(289) bps
(172) 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 June 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 six months ended June 30, 2025, and 2024.
Capital Markets and Balance Sheet
NCI Term Loan RefinancingIn July 2025, the Company, together with its joint venture partner, 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 has an initial maturity date of July 2028 and can be extended for two 12-month periods at the Company's option, subject to certain conditions, for a fully extended maturity date of July 2030.
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.
Brickell Mortgage LoanIn May 2025, the Company, together with its joint venture partner, closed on a $58.0 million mortgage loan (the "Brickell Mortgage Loan") secured by the dual-branded 264-guestroom AC Hotel by Marriott and Element Hotel Miami Brickell. The Brickell Mortgage Loan proceeds were used to repay the existing $45.4 million mortgage loan, that was scheduled to mature in June 2025, and for other general corporate purposes.
The Brickell Mortgage Loan provides for an interest rate equal to SOFR plus 260 basis points, which represents a 40 basis point reduction from the previous loan. Payments on the Brickell Mortgage Loan are interest-only for the life of the loan, subject to certain financial requirements. The Brickell Mortgage Loan will mature on May 2028 and can be extended for two 12-month periods at the Company's option, subject to certain conditions, for a fully extended maturity date of May 2030.
Subsequent to the closing of the Brickell Mortgage Loan, the Company entered into a $58.0 million interest rate swap to fix SOFR until May 2028. Pursuant to the interest rate swap, the Company will pay a fixed rate of 3.57 percent.
As a result of these refinancings, as well as the $275 million delayed draw term loan (the "Delayed Draw Term Loan") that closed in the first quarter that the Company intends to utilize to retire the outstanding $287.5 million 1.50 percent Convertible Senior Notes that mature in February 2026, the Company's average length to maturity will increase to nearly four years on a pro forma basis, including extension options, and the Company will have no debt maturities until 2028.
On a pro rata basis as of June 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 4.60 percent. After giving effect to interest rate derivative agreements, $827.0 million, or 75 percent, of our outstanding debt had a fixed interest rate, and $276.5 million, or 25 percent, had a variable interest rate.
Unrestricted cash and cash equivalents of $33.1 million.
Total liquidity of over $310 million, including unrestricted cash and cash equivalents and revolving credit facility availability.
Share Repurchase Program
During the second quarter, the Company repurchased 3.6 million common shares under its share repurchase program for an aggregate purchase price of $15.4 million, or an average of approximately $4.30 per share. As of August 5, 2025, approximately $34.6 million remained available for repurchase under this program.
Common and Preferred Dividend Declaration
On August 1, 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 6.3 percent, based on the closing price of shares of the common stock on August 4, 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 August 29, 2025 to holders of record as of August 15, 2025.
Onera Fredericksburg Expansion
During the quarter, the Company, together with its joint venture partner, completed the expansion of Onera Fredericksburg, its luxury landscape hotel located in the heart of Texas Hill Country. The project added 23 custom-built, hard-sided, and climate-controlled units, increasing the property's total unit count to 35. The expansion includes:
15 luxury units that build on the property's signature architectural innovation and showcase unobstructed views of the surrounding Hill Country landscape. New unit concepts include the Cypress Lodge, Diamond, Monolith, Post Oak, Quonset, Spiral, and Winecup, each designed to offer a unique and immersive guest experience. Units sleep between two and six guests and feature private hot tubs, with select units offering private plunge pools.
The Great Lodge, an eight-room lodge consisting of one-bedroom suites, each with a private hot tub, that can be booked individually or as a full block. The lodge features a private pool, sauna, and a well-appointed communal great room ideal for group getaways, family gatherings, and corporate retreats.
For the six months ending June 30, 2025, prior to the expansion, Onera Fredericksburg generated a RevPAR of nearly $360 and a hotel EBITDA margin of nearly 50%. The Company expects that with the expansion, Onera Fredericksburg will continue to generate an unlevered yield on cost in the low to mid-teens.
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. This has created a more uncertain operating environment and a wider range of potential results than we typically observe at the midpoint of the year. Based on actual results for the first half of the year and recent portfolio trends, our performance is currently tracking modestly below the lower end of the guidance ranges we provided as part of our year-end 2024 earnings report on February 24, 2025, for full year Adjusted EBITDAre, Adjusted FFO and Adjusted FFO per share. We expect capital expenditures for full year 2025 of $60 million to $65 million on a pro rata basis.
Second Quarter 2025 Earnings Conference Call
The Company will conduct its quarterly conference call on August 6, 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 October 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 August 5, 2025, the Company's portfolio consisted of 97 assets, 53 of which are wholly owned, with a total of 14,577 guestrooms located in 25 states.
For additional information, please visit the Company's website, www.shpreit.com, and follow on X at
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)
June 30, 2025
December 31, 2024
(Unaudited)
ASSETS
Investments in lodging property, net
$ 2,722,459
$ 2,746,765
Investment in lodging property under development
—
7,617
Assets held for sale, net
—
1,225
Cash and cash equivalents
39,490
40,637
Restricted cash
8,734
7,721
Right-of-use assets, net
32,933
33,309
Trade receivables, net
22,554
18,625
Prepaid expenses and other
14,197
9,580
Deferred charges, net
10,468
6,460
Other assets
17,335
24,291
Total assets
$ 2,868,170
$ 2,896,230
LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTSAND EQUITY
Liabilities:
Debt, net of debt issuance costs
$ 1,425,799
$ 1,396,710
Lease liabilities, net
24,763
24,871
Accounts payable
7,285
7,450
Accrued expenses and other
81,142
82,153
Total liabilities
1,538,989
1,511,184
Redeemable non-controlling interests
50,219
50,219
Total stockholders' equity
895,146
909,545
Non-controlling interests
383,816
425,282
Total equity
1,278,962
1,334,827
Total liabilities, redeemable non-controlling interests and equity
$ 2,868,170
$ 2,896,230
Summit Hotel Properties, Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
For the Three MonthsEnded June 30,
For the Six MonthsEnded June 30,
2025
2024
2025
2024
Revenues:
Room
$ 170,599
$ 173,025
$ 334,330
$ 340,456
Food and beverage
11,195
10,069
22,185
20,902
Other
11,123
10,809
20,880
20,687
Total revenues
192,917
193,903
377,395
382,045
Expenses:
Room
39,166
38,044
75,298
74,017
Food and beverage
8,388
7,639
16,379
15,841
Other lodging property operating expenses
58,943
57,470
115,865
113,731
Property taxes, insurance and other
13,706
13,287
27,017
27,572
Management fees
4,411
4,434
8,906
9,331
Depreciation and amortization
37,259
36,458
74,489
73,257
Corporate general and administrative
8,280
8,704
16,851
17,015
Total expenses
170,153
166,036
334,805
330,764
(Loss) gain on disposal of assets, net
(80)
28,342
(79)
28,417
Operating income
22,684
56,209
42,511
79,698
Other income (expense):
