SUMMIT HOTEL PROPERTIES ANNOUNCES FIRST QUARTER 2026 EARNINGS RELEASE DATE Accessibility StatementSkip NavigationAUSTIN, Texas, March 25, 2026 /PRNewswire/ -- Summit Hotel Properties, Inc. (NYSE: INN) (the "Company") today announced that it will report financial results for the first quarter of 2026 on Thursday, April 30, 2026, after the market closes.The Company will conduct its quarterly conference call on Friday, May 1, 2026, at 12:00 PM ET.To access the conference call, please pre-register using this li ...

Core Insights - The company experienced a decline in government and inbound international demand, which together account for approximately 10% to 15% of total room nights, resulting in a blended decline of around 20% during the quarter [1] - Fourth-quarter RevPAR showed a slight increase of roughly 60 basis points year over year when excluding the aforementioned segments [1] - The company reported a pro forma RevPAR decline of 1.8% in the fourth quarter, with occupancy down 0.7% and average daily rate down 1.1%, although results were better than expected [2] Demand Trends - Fourth-quarter demand showed an "encouraging positive inflection" compared to the second and third quarters of 2025, with same-store RevPAR declining 1.6% but improving sequentially by over 200 basis points [3][4] - The company highlighted sequential improvement in RevPAR trends late in the year, despite ongoing headwinds from government and international demand [4][7] - The RevPAR index improved by 220 basis points to 117, indicating market share gains [7][8] Market Performance - Key markets such as San Francisco, Orlando, and South Florida showed strength in the fourth quarter, with San Francisco hotels achieving over 40% RevPAR growth year over year [9][11] - Orlando's RevPAR increased by 9% due to a shift towards higher-rated retail channels, while South Florida's RevPAR grew by 4% supported by leisure and corporate demand [12] Financial Performance - For the full year 2025, same-store RevPAR declined 1.8%, primarily due to lower average daily rates [13] - The company reported adjusted EBITDA of $174.8 million and adjusted FFO of $0.85 per share for 2025, while managing expense growth to about 2% year over year [14] - Capital expenditures for 2025 were approximately $75 million, with guidance for 2026 set at $55 million to $65 million [15] Capital Management - The company executed capital recycling by selling three non-core hotels for about $51.3 million and drew a $275 million delayed-draw term loan to retire convertible notes, resulting in no debt maturities until 2028 [6][18] - A quarterly dividend of $0.08 per share was declared, equating to an annualized yield of approximately 7.7% [19] 2026 Outlook - The company anticipates modest RevPAR growth of 0% to 3% for 2026, with adjusted EBITDA guidance of $167 million to $181 million and adjusted FFO of $0.73 to $0.85 per share [5][20] - The FIFA World Cup is expected to provide a tailwind, contributing roughly 50 to 75 basis points to full-year RevPAR expectations [22] - The first quarter of 2026 is expected to be challenging, with January RevPAR down about 3% due to travel disruptions [23]

Group 1 - Melrose reported an 8% increase in annual revenue for 2025, reaching 3.59 billion pounds ($4.83 billion) [1] - The growth in revenue was driven by strong after-market demand and increased defense budgets due to geopolitical tensions [1]

Financial Data and Key Metrics Changes - In Q4 2025, RevPAR improved sequentially by over 200 basis points compared to Q3 2025, resulting in a same-store RevPAR decline of 1.6% [4][5] - For the full year 2025, same-store RevPAR declined 1.8%, primarily due to lower average daily rates [7][21] - Adjusted EBITDA for Q4 was $39.7 million, and adjusted FFO was $22.3 million, or $0.18 per share [21][22] - Full year 2025 adjusted EBITDA was $174.8 million, and adjusted FFO was $0.85 per share [21][22] Business Line Data and Key Metrics Changes - Government and international inbound demand declined approximately 20%, impacting overall performance, while other segments showed stability [5][6] - Non-rooms revenue increased by 9% in Q4 and 5% for the full year 2025, driven by food and beverage sales and other ancillary revenue streams [19][21] - The company sold two non-core hotels in Q4, generating $39 million in gross proceeds, and has sold 13 non-core hotels since 2023, totaling approximately $200 million [8][9] Market Data and Key Metrics Changes - San Francisco saw over 40% year-over-year RevPAR growth in Q4, driven by citywide conventions and improving business travel [16] - Orlando properties experienced a 9% increase in RevPAR in Q4, while South Florida properties grew by 4% [17][18] - Nashville's performance was bolstered by strong sports-related and group demand [19] Company Strategy and Development Direction - The company is focused on optimizing hotel profitability, prudent capital allocation, and strengthening the balance sheet to drive long-term shareholder value [14][24] - The company anticipates modest top-line growth in 2026, supported by improving fundamentals and disciplined expense management [10][11] - The company is positioned to benefit from the FIFA World Cup and favorable convention calendars in key markets [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving demand trends and easing year-over-year comparisons starting in Q2 2026 [9][12] - The company expects RevPAR for 2026 to range from flat to up 3%, primarily driven by gains in average daily rates [11][26] - Management noted that the first quarter of 2026 is expected to be challenging due to difficult comparisons from the previous year [12][27] Other Important Information - The company has made significant progress in extending maturities and reducing borrowing costs, with no debt maturities until 2028 [24][25] - The board declared a quarterly common dividend of $0.08 per share, representing a yield of approximately 7.7% [25] Q&A Session Summary Question: Can you discuss the visibility and length of the booking window? - Management noted positive indications from pacing, with March pacing slightly positive and April showing mid-single-digit increases, driven by solid midweek performance and urban market demand [30][31] Question: What segments are expected to drive RevPAR growth? - Management indicated that the majority of growth is expected from business transient and group segments, with a mix of two-thirds from rate growth [32] Question: How much lift is expected from the World Cup? - Management expects the World Cup to add approximately 50 to 75 basis points to the full year expectations, with significant exposure in key markets [36] Question: What specific market drivers are boosting the forecast? - Management highlighted Fort Lauderdale's strong performance post-renovation, Asheville's recovery, and the expected benefits from World Cup markets [42][43] Question: Any changes in discounting or advanced purchase rates? - Management indicated stability in demand segments and less need for remixing business, with a focus on maintaining higher-rated demand [48]

Financial Data and Key Metrics Changes - In the fourth quarter, RevPAR trends improved sequentially by over 200 basis points, resulting in a same-store RevPAR decline of 1.6% [4] - For the full year, same-store RevPAR declined 1.8%, primarily due to lower average daily rates as demand shifted towards lower-rated segments [7][21] - Fourth quarter adjusted EBITDA was $39.7 million, and adjusted FFO was $22.3 million, or $0.18 per share [21] Business Line Data and Key Metrics Changes - The fourth quarter pro forma RevPAR declined 1.8%, driven by occupancy and average daily rate declines of 0.7% and 1.1% respectively [15] - Non-rooms revenue increased 9% for the fourth quarter and 5% for the full year 2025, driven by food and beverage revenue and other ancillary revenue streams [19][20] Market Data and Key Metrics Changes - Government and international inbound demand declined approximately 20% on a blended basis, representing 10%-15% of total room nights [5] - San Francisco experienced over 40% year-over-year RevPAR growth in the fourth quarter, driven by citywide conventions and improving business travel [16] - Orlando properties saw a 9% increase in RevPAR in the fourth quarter due to strong demand [17] Company Strategy and Development Direction - The company is focused on optimizing hotel profitability, prudent capital allocation, and strengthening the balance sheet to drive long-term shareholder value [14] - The company expects demand trends to improve in 2026, supported by historical low levels of new supply and several special events, including the FIFA World Cup [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the gradual improvement in demand patterns and the potential for a positive year in 2026, despite near-term volatility [10][13] - The company anticipates RevPAR growth of 0%-3% for the full year 2026, primarily driven by gains in average daily rates [26] Other Important Information - The company has sold 13 non-core hotels since 2023, generating approximately $200 million in gross proceeds [9] - The board declared a quarterly common dividend of $0.08 per share, representing a dividend yield of approximately 7.7% [25] Q&A Session Summary Question: Can you discuss the visibility and length of the booking window that underlies your confidence in the trends in the months ahead? - Management noted positive indications from pacing, with March pacing slightly positive and April showing mid-single-digit increases, driven by solid performance in urban markets [30][31] Question: Is rate growth consistent with the pace figures in the months ahead, and which segments are expected to drive improvement? - Management indicated that the majority of the lift is expected from business transient and group segments, with a two-thirds contribution from rate growth [32] Question: How much lift do you expect from the World Cup, and how does it factor into your RevPAR growth outlook? - Management expects the World Cup to add approximately 50 to 75 basis points to the full-year expectations, with significant exposure in key markets [36] Question: Can you provide insights on market-specific drivers boosting your forecast? - Management highlighted strong performance in Fort Lauderdale post-renovation, expected growth in Asheville, and continued strength in markets like San Francisco and South Florida [42][43] Question: Any changes in discounting or advanced purchase rates that give you more confidence looking ahead? - Management noted that while there has been less remixing of business, stability and growth in other segments are encouraging, with no significant widening of the booking window [48]

Financial Data and Key Metrics Changes - In Q4 2025, RevPAR improved sequentially by over 200 basis points compared to Q3 2025, resulting in a same-store RevPAR decline of 1.6% [4] - For the full year 2025, same-store RevPAR declined 1.8%, primarily due to lower average daily rates [6][20] - Adjusted EBITDA for Q4 2025 was $39.7 million, and adjusted FFO was $22.3 million, or $0.18 per share [20] - Full year 2025 adjusted EBITDA was $174.8 million, and adjusted FFO was $0.85 per share [20] Business Line Data and Key Metrics Changes - The company closed on the sale of two non-core hotels in Q4 2025, generating gross proceeds of $39 million [8] - Non-rooms revenue increased by 9% in Q4 2025, driven by food and beverage revenue and other ancillary revenue streams [19][20] - Contract labor costs declined nearly 9%, approaching pre-pandemic levels, contributing to improved employee retention and productivity [21] Market Data and Key Metrics Changes - Government and international inbound demand declined approximately 20% in Q4 2025, impacting overall performance [5] - RevPAR for San Francisco properties increased over 40% year-over-year in Q4 2025, driven by citywide conventions and improving business travel [16] - Orlando properties saw a 9% increase in RevPAR in Q4 2025, supported by strong demand and higher-rated retail channels [17] Company Strategy and Development Direction - The company is focused on optimizing hotel profitability, prudent capital allocation, and strengthening the balance sheet to drive long-term shareholder value [14] - The company expects to benefit from several special events in 2026, including the FIFA World Cup, which will provide a unique demand tailwind [10][11] - A disciplined capital recycling strategy has been implemented, with 13 non-core hotels sold since 2023, generating approximately $200 million in gross proceeds [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about improving demand trends and easing year-over-year comparisons starting in Q2 2026 [11][13] - The company anticipates RevPAR growth of 0%-3% for the full year 2026, primarily driven by gains in average daily rates [25] - Management highlighted that the first quarter of 2026 is expected to be the most challenging, with RevPAR trends in line with Q4 2025 results [12] Other Important Information - The company declared a quarterly common dividend of $0.08 per share, representing a yield of approximately 7.7% [24] - The 2026 pro rata capital expenditure guidance is set at $55 million-$65 million, consistent with 2025 spending levels [22] Q&A Session Summary Question: Can you discuss the visibility and length of the booking window that underlies your confidence in the trends ahead? - Management noted positive indications from pacing, with March pacing slightly positive and April showing mid-single-digit increases, driven by solid performance in urban markets [30] Question: Is rate growth consistent with the pace figures in the months ahead, and which segments will drive improvement? - Management indicated that the majority of the lift is expected from business transient and group segments, with a two-thirds contribution from rate growth [32] Question: How much lift do you expect from the World Cup, and how does it impact your RevPAR growth outlook? - Management expects the World Cup to add approximately 50 to 75 basis points to the full year expectations, with significant exposure in key markets [35]

Earnings Release Supplement Fourth Quarter 2025 (UNAUDITED) February 25, 2026 1 Table of Contents | Section I | Forward-Looking Statements and Non-GAAP Financial Measure Disclosures | | --- | --- | | Section II | Corporate Financial Schedules | | Section III | Operating & Property-Level Schedules | | Section IV | Capitalization and Debt Schedules | | Section V | Asset Listing | 2 Forward-Looking Statements We make forward-looking statements in this presentation that are subject to risks and uncertainties. T ...

Financial Performance - In 2025, the company experienced a modest same-store revenue decline of 1.1% in room revenue, primarily due to reduced government-related and inbound international travel [225]. - The total revenue for 2025 was $729.5 million, a slight decrease of 0.3% compared to $731.8 million in 2024 [241]. - The average daily rate (ADR) decreased by 1.6% to $164.85 in 2025 from $167.48 in 2024 [241]. - Revenue per available room (RevPAR) declined by 1.4% to $121.44 in 2025 compared to $123.19 in 2024 [241]. - Net loss for the year ended December 31, 2025, was $11.7 million, compared to a net income of $38.9 million in 2024 [259]. - FFO applicable to common shares and Common Units for 2025 was $85.2 million, down from $115.2 million in 2024 [259]. - Adjusted EBITDAre for the year ended December 31, 2025, decreased by $17.3 million to $174.8 million compared to $192.2 million in 2024, primarily due to a decline in Hotel EBITDA and same-store RevPAR [257]. - EBITDAre for the year ended December 31, 2025, was $214.2 million, compared to $236.2 million in 2024 [257]. Operating Expenses - Total operating expenses increased by 3.4% to $415.7 million in 2025, up from $402.2 million in 2024 [241]. - Corporate general and administrative expenses increased by $0.9 million for the year ended December 31, 2025, mainly due to a $0.7 million increase in non-cash stock compensation expenses [246]. - Property taxes, insurance, and other increased by $0.6 million for the year ended December 31, 2025, primarily due to a $1.1 million increase in property taxes [246]. - Room expenses for the total portfolio increased by $4.7 million for the year ended December 31, 2025, due to a $3.3 million increase in same-store room expenses [243]. Asset Sales and Acquisitions - The company sold the 127-guestroom Hyatt Place Dallas for $10.3 million, recording a write-down of $4.0 million in Q4 2023 [230]. - In April 2024, the company completed the sale of two properties in New Orleans for a total of $73.0 million, resulting in a gain of approximately $28.3 million [231]. - The company acquired two properties in December 2024 for a combined purchase price of $96.0 million, funded through various sources including borrowings and capital contributions [233]. - The gain on disposal of assets, net for the year ended December 31, 2025, was $6.6 million, primarily from the sale of two Courtyard by Marriott properties [247]. Debt and Liquidity - As of December 31, 2025, the company had $200.0 million outstanding on the 2024 Term Loan and $287.5 million of outstanding Convertible Notes [271]. - The GIC Joint Venture had $250.0 million in outstanding loans under its Credit Facility, including a $125.0 million term loan and a $125.0 million revolving line of credit [272]. - In March 2025, the company entered into a $275 million delayed draw term loan to refinance a significant portion of its Convertible Notes [270]. - The company believes it will have adequate liquidity to meet scheduled maturities and principal repayments [276]. - As of December 31, 2025, total debt amounted to $1,404,143,000, with pro rata debt outstanding at $1,075,608,000 [278]. Cash Flow - Net cash provided by operating activities for the year ended December 31, 2025, was $149,030,000, a decrease of $17,293,000 compared to 2024 [285]. - Net cash used in investing activities for 2025 was $43,387,000, a decrease of $28,112,000 compared to 2024 [285]. - Net cash used in financing activities for 2025 was $112,789,000, an increase of $18,555,000 compared to 2024 [287]. Risks and Challenges - Cybersecurity risks could disrupt operations and compromise sensitive information, potentially affecting the company's financial condition and stock price [105]. - The lodging industry is sensitive to economic conditions, with performance closely tied to U.S. GDP growth and discretionary spending levels, which can impact revenue and profitability [120]. - The company faces significant competition from other hotels and alternative accommodations, which can affect occupancy rates and average daily rates (ADR) due to price transparency in the market [121]. - The company is exposed to risks from infectious disease outbreaks, which can significantly disrupt travel patterns and adversely affect guest numbers [119]. - Development of lodging properties involves risks related to timing and budgeting, which can affect financial performance if projects are not completed on time or within budget [128]. Regulatory and Compliance - The company’s ability to maintain REIT status is contingent on compliance with complex tax regulations, including the treatment of its Operating Partnership [173]. - The company may face a 100% excise tax on certain transactions with its TRSs if not conducted on arm's-length terms, impacting overall tax liability [177]. - Changes in state and local tax regimes could increase tax liabilities, adversely impacting the company's financial position and cash flows [141]. Shareholder Matters - The company has authorized a share repurchase program of up to $50.0 million for its outstanding common stock, but there is no obligation to repurchase any specific amount [164]. - The company’s stock may be affected by various factors, including quarterly results, interest rates, debt levels, and changes in market valuations within the lodging industry [160]. - The company’s stockholders have limited voting rights, and removal of directors requires a two-thirds affirmative vote, which may hinder stockholder influence [149].

Core Insights - Summit Hotel Properties reported a stabilization in demand across its portfolio in Q4 2025, with RevPAR growth improving by 240 basis points sequentially despite challenges from lower international travel and government demand due to a prolonged government shutdown [1][2] - The company is optimistic about 2026, anticipating strengthened fundamentals supported by special event demand, including World Cup matches, and growth in corporate transient and group demand [1][2] - The capital recycling program continued with the sale of non-core hotels, generating over $51 million in gross proceeds and eliminating approximately $13 million in near-term capital expenditures [1][2] Fourth Quarter 2025 Summary - Adjusted FFO decreased to $22.3 million, or $0.18 per diluted share, from $25.2 million, or $0.20 per diluted share in Q4 2024 [1][2] - Adjusted EBITDAre fell to $39.7 million from $42.1 million in Q4 2024 [1][2] - Pro forma RevPAR decreased by 1.8% to $115.58, with pro forma ADR down 1.1% to $162.66 and occupancy down 0.7% to 71.1% [1][2] Full Year 2025 Summary - Adjusted FFO for the full year decreased to $103.6 million, or $0.85 per diluted share, compared to $119.2 million, or $0.96 per diluted share in 2024 [1][2] - Adjusted EBITDAre decreased to $174.8 million from $192.2 million in 2024 [1][2] - Pro forma RevPAR decreased by 2.2% to $121.85, with pro forma ADR down 1.8% to $165.28 and occupancy down 0.4% to 73.7% [1][2] Transaction Activity - In February 2026, the company sold the Hilton Garden Inn Longview for $12.3 million, representing a 6.7% capitalization rate [2] - In October 2025, two hotels were sold for a combined $39 million, with a blended capitalization rate of 4.3% [2] - Since 2023, the company has sold 13 hotels for approximately $200 million at a blended capitalization rate of about 4.6% [2] Capital Markets Activity - The company fully repaid $287.5 million in Convertible Notes using a $275 million Delayed Draw Term Loan [2] - An interest rate swap was entered into for $125 million to fix one-month term SOFR at 3.31% until December 2027 [2] Balance Sheet Summary - As of December 31, 2025, the company had unrestricted cash of $30.1 million and outstanding debt of $1.1 billion with a weighted average interest rate of 4.48% [2] - 77% of the outstanding debt had a fixed interest rate, while 23% had a variable interest rate [2] Dividend Declaration - A quarterly cash dividend of $0.08 per share was declared, representing an annualized yield of 7.7% [2] - Additional dividends were declared on preferred units and shares [2] 2026 Outlook - The company projects pro forma RevPAR growth between 0.00% and 3.00% for 2026 [2] - Adjusted EBITDAre is expected to be between $167 million and $181 million, with Adjusted FFO projected between $89 million and $103.5 million [2]

Core Insights - The real estate sector has identified oversold stocks, presenting potential buying opportunities for undervalued companies [1] - The Relative Strength Index (RSI) is a key indicator for assessing stock performance, with an RSI below 30 indicating that a stock is typically considered oversold [1] Company Summaries - Vornado Realty Trust (NYSE:VNO) has an RSI of 29.9, indicating it is near the oversold threshold. The stock has experienced a 12% decline over the past month, reaching a 52-week low of $27.76. On the latest trading day, shares closed at $27.90, down 0.5% [3] - Summit Hotel Properties Inc (NYSE:INN) is listed among the major oversold players in the real estate sector, with an RSI near or below 30 [2] - Kilroy Realty Corp (NYSE:KRC) is also included in the list of oversold stocks, indicating potential investment opportunities [2]