UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________________________________________ FORM 10-Q ____________________________________________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ...

Summit Hotel Properties, Inc. (NYSE:INN) Q4 2022 Results Conference Call February 28, 2023 9:00 AM ET Company Participants Adam Wudel - Senior Vice President of Finance, Capital Markets and Treasurer Jon Stanner - President and Chief Executive Officer Trey Conkling - Executive Vice President and Chief Financial Officer Conference Call Participants Austin Wurschmidt - KeyBank Capital Market William Crow - Raymond James Michael Bellisario - Robert W. Baird Operator Good day, and thank you for standing by. Wel ...

Ownership and Structure - The company owns approximately 87.0% of the Common Units in the Operating Partnership and all issued Series E and Series F Preferred Units[150]. - Stockholders' claims are structurally subordinated to all liabilities of the Operating Partnership, affecting their recovery in bankruptcy scenarios[149]. - The company has a 9.8% stock ownership limit in its charter, which may restrict market activity and business combination opportunities[176]. - To qualify as a REIT, at least 100 persons must beneficially own the company's capital stock for at least 335 days of a taxable year[176]. - The board of directors has the authority to revoke the company's REIT qualification without stockholder approval, which could lead to federal income tax liabilities[147]. Financial Performance and Risks - The cash available for distribution may not be sufficient to meet expected levels, potentially requiring the use of borrowed funds or other sources[153]. - The company may need to borrow funds or sell assets to satisfy REIT distribution requirements, which could adversely affect liquidity[164]. - Future issuances of debt securities may be senior to common and preferred stock, potentially diluting existing stockholders' interests[159]. - The company anticipates increasing regulation and scrutiny regarding ESG matters, which could lead to higher costs and negative investor sentiment[187]. - The company may face adverse effects on cash flows due to the timing differences between actual income receipt and income recognition for federal tax purposes[164]. Market and Economic Conditions - The market price of the company's stock may be volatile due to changes in market interest rates and the annual yield from distributions compared to other financial instruments[155]. - The U.S. economy experienced the highest inflation rate in 40 years during the year ended December 31, 2022, which could adversely affect operating costs and consumer demand for lodging[114]. - The lodging industry is sensitive to economic conditions, with declines in corporate budgets and consumer demand potentially lowering revenue and profitability[118]. - The company faces high competition from other hotels and alternative accommodations, which could adversely affect occupancy, average daily rate (ADR), and revenue per available room (RevPAR)[119]. Regulatory and Taxation Issues - The company must distribute at least 90% of its REIT taxable income to maintain its REIT status, or it will face federal corporate income tax[163]. - The formation of TRSs increases the overall tax liability, as they are subject to federal, state, and local income tax on their taxable income[165]. - The company is subject to a 100% prohibited transactions tax, which may limit its ability to dispose of properties and incur material tax liabilities[179]. - If any subsidiary REIT fails to qualify as a REIT, it could lead to higher taxes and jeopardize the company's REIT status[173]. - The company may be subject to adverse legislative or regulatory tax changes that could affect its operations and stock price[174]. Operational Challenges - The TRS Lessees are subject to increased lodging property operating expenses, which could adversely affect their ability to pay rent[166]. - The company selectively provides mezzanine financing to developers, exposing it to credit financing risk in case of borrower default[115]. - The outbreak of highly infectious diseases, such as COVID-19, could significantly reduce the number of guests visiting the company's lodging properties, adversely affecting operations[116]. - Ongoing capital expenditures are required for renovations and improvements at lodging properties, which may impact financial position and cash flows[123]. - Development of lodging properties involves risks related to timing and budgeting, which could adversely affect financial results[124]. Environmental and Social Governance (ESG) - The company has established a Corporate Responsibility program since 2017 to address ESG concerns, which may lead to increased costs and compliance obligations[185]. - The company faces risks from climate change, including increased costs and potential business interruptions due to natural disasters[182]. - Regulatory developments related to climate change may impose substantial monitoring and compliance costs on the company[183]. - Increasing scrutiny on ESG matters may lead to higher costs and potential negative publicity, impacting consumer preference and investor sentiment[185]. - Unfavorable ESG ratings could negatively affect the company's share price and access to capital[187]. Internal Controls and Governance - The company cannot guarantee it will remain qualified as a REIT, which could impair its ability to expand and raise capital[160]. - The company may face challenges in maintaining effective internal controls, which are critical for accurate financial reporting[151]. - The company’s charter limits stockholders' voting rights and makes it difficult to remove directors[144]. - The company relies on third-party information for its ESG efforts, which may be prone to errors and could adversely affect its sustainability goals[186]. - Cybersecurity risks, including potential breaches and system disruptions, could negatively impact the company's operations and financial results[105].

Summit Hotel Properties, Inc. (NYSE:INN) Q3 2022 Results Conference Call November 2, 2022 9:00 AM ET Company Participants Adam Wudel - Senior Vice President of Finance, Capital Markets and Treasurer Jon Stanner - President and Chief Executive Officer Trey Conkling - Executive Vice President and CFO Conference Call Participants Neil Malkin - Capital One Michael Bellisario - Baird Austin Wurschmidt - KeyBanc Operator Good day, and thank you for standing by. Welcome to the Summit Hotel Properties Q3, 2022 Conf ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________________________________________ FORM 10-Q ____________________________________________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period ...

Financial Data and Key Metrics Changes - Second quarter pro forma RevPAR increased approximately 54% from the second quarter of last year, driven by a 12.5% increase in occupancy and a 37% increase in ADR [6] - Hotel EBITDA recapture in the portfolio was 89% of 2019 second quarter results, with pro forma gross operating profit margins reaching just under 48%, representing 125 basis points of margin expansion over June of last year [7][11] - Pro forma hotel EBITDA for the second quarter was $70.7 million, a 94% increase from the second quarter of 2021, resulting in a 38% margin, the highest quarterly hotel EBITDA margin during the pandemic era [31] Business Line Data and Key Metrics Changes - The urban portfolio produced a second quarter RevPAR of $125, the highest quarterly RevPAR since the onset of the pandemic, surpassing first quarter 2022 urban RevPAR by approximately $34 or 38% [23] - Non-urban hotels achieved a second quarter RevPAR of $119, an increase of over 13% relative to first quarter 2022 and a 33% increase compared to the second quarter of 2021 [25] - The group segment's recovery was notable, with group room night contribution reaching 15% of the total portfolio mix, essentially flat to pre-pandemic levels [10] Market Data and Key Metrics Changes - Weekday pro forma RevPAR increased 26% from the first quarter and 67% from the same period last year, with weekday occupancy exceeding 71% for the quarter [9] - September RevPAR is pacing 14% ahead of August in the pro forma portfolio, positioning the company to achieve recapture rates to 2019 that are in line or potentially above the highest experienced in June [13] - Booking windows expanded, with same-day bookings declining from 19% to 15% of total bookings, indicating a return to pre-pandemic norms [27] Company Strategy and Development Direction - The company reinstated a quarterly common dividend of $0.04 per share, reflecting confidence in the cash flow profile and business outlook [14] - The company remains bullish on the long-term outlook for the NewcrestImage portfolio, expecting to realize benefits from recently implemented asset and revenue management strategies [19] - The company is focused on thoughtful transactions and executing its operating plan to enhance earnings and share price over time [50] Management's Comments on Operating Environment and Future Outlook - Management noted that the consumer remains healthy, with no signs of softness in leisure travel demand despite inflation concerns [102] - The company is optimistic about the recovery in urban markets, particularly as business transient travel continues to improve [47] - Management expects stabilization in the Newcrest portfolio to occur in 2023 or 2024, with benefits starting to show in the fall [75] Other Important Information - The company invested approximately $15 million in its portfolio during the second quarter, with expectations to spend $60 million to $80 million on a consolidated basis for the full year [33] - The overall liquidity position remains robust at more than $480 million, with ample liquidity to repay all maturing debt through 2024 [34] - The company has entered into two $100 million interest rate swap agreements to manage interest rate risk, extending the average duration of its swap portfolio [35] Q&A Session Summary Question: Insights on ADR for business travelers - Management indicated that historically, their portfolio has run higher rates than negotiated channels, and as business travel returns, there is significant upside potential for ADR [42][44] Question: Stock performance and catalysts for growth - Management expressed frustration with stock performance, noting that it does not reflect the quality of the portfolio and the transactions completed since the pandemic [46][48] Question: Urban vs. resort market performance - Management acknowledged that while leisure travel remains strong, there has been a shift of some leisure travel to urban markets, particularly those with leisure attractions [56] Question: Recent investment performance and future expectations - Management stated that recent acquisitions are trending ahead of underwriting, with expectations for stabilization in 2023 and 2024 [66][75] Question: Changes in buyer-seller expectations in the current market - Management noted that asset prices have trended lower, but there remains a deep buyer pool for high-quality assets, and they are open to evaluating seller financing if it makes sense [78][79]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________________________________________ FORM 10-Q ____________________________________________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ...

Financial Data and Key Metrics Changes - The company reported a pro forma RevPAR increase of approximately 78% from Q1 2021, driven by a 21% increase in occupancy and a 47% increase in ADR [9][32] - First quarter RevPAR reached $87 for the urban portfolio, with March and April RevPAR at $113 and $120 respectively, marking a 7% and 14% premium to the previous pandemic monthly high [23][24] - Pro forma hotel EBITDA for Q1 was $47.3 million, a 200% increase from Q1 2021, resulting in a 33% margin, nearly 13 percentage points higher than the previous year [32] Business Line Data and Key Metrics Changes - The urban portfolio saw significant growth, particularly in mid-week occupancy driven by corporate and group travel, with preliminary April occupancy at approximately 70% [8][11] - Non-urban hotels reported a Q1 RevPAR of $106, with resort hotels achieving a RevPAR of $183 due to strong spring break demand [26][27] - The company anticipates a combined hotel EBITDA yield of 8% to 9% for the newly acquired hotels in Miami and San Francisco [17] Market Data and Key Metrics Changes - RevPAR in March reached a pandemic era high of over $120, a 61% increase from January results, indicating strong recovery trends [7] - Preliminary April pro forma RevPAR was expected to be $119, approximately 90% of 2019 levels, despite entering slower seasonal periods for some markets [10] - The company noted that weekday pro forma RevPAR increased significantly, achieving $113 and $110 in March and April respectively, both over 20% higher than the previous pandemic peak [12] Company Strategy and Development Direction - The company is focused on opportunistic capital allocation, having executed approximately $1 billion in transactions since July 2021, with a strategy to identify and execute accretive transactions [21] - The company plans to close on the sale of the Hilton Garden Inn in San Francisco for $75 million, which will allow it to avoid a $7 million renovation [14][36] - The management emphasized the uniqueness of their mezzanine lending program, which allows for capturing better risk-adjusted returns without taking on outright development risk [17][58] Management Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery trajectory, noting that pricing power remained strong in March and April, with no significant pushback from customers despite rising inflation [56] - The company expects continued improvement in weekday demand and strong performance during the summer season, with May and June recapture rates anticipated to be in line or better than April [13] - Management highlighted that the balance sheet remains robust, with over $450 million in liquidity and a well-positioned interest rate risk management strategy [39] Other Important Information - The company plans to invest $60 million to $80 million in capital expenditures for 2022, focusing on renovations across 13 hotels [34][41] - The company reported an adjusted FFO of $20.1 million for Q1, an increase of $27.1 million from Q1 2021 [33] Q&A Session Summary Question: Performance of Newcrest portfolio - Management indicated that the Newcrest portfolio is tracking slightly ahead of underwriting, with expectations of a 7% EBITDA yield for the full year [47] Question: Balance sheet and deleveraging strategy - Management discussed plans to use proceeds from the San Francisco asset sale to pay down debt, aiming for a more normalized debt to EBITDA ratio [49][50] Question: Impact of inflation on leisure travelers - Management noted no significant signs of pushback from customers regarding rising hotel rates, maintaining strong pricing power [56] Question: Future appetite for mezzanine investments - Management expressed a positive outlook on the mezzanine lending program, indicating a willingness to explore more opportunities despite current market challenges [58] Question: Differences in recovery pace among brand families - Management clarified that recovery differences are more market-driven rather than brand-driven, with leisure-oriented properties recovering more robustly [64]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________________________________________ FORM 10-Q ____________________________________________________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ...

Financial Data and Key Metrics Changes - The pro forma portfolio of 74 hotels generated RevPAR of $81 for the full year, representing a 55% increase over 2020 and a 63% recapture rate relative to 2019 [5] - Fourth quarter pro forma RevPAR was $94, driven by a 51% increase in occupancy and a 44% increase in average rate [7] - Adjusted FFO for the fourth quarter was $14.8 million, resulting in a full year adjusted FFO of $36.8 million [23] - Operating costs per occupied room declined more than 5% compared to 2019, leading to a gross operating profit margin of 44% and hotel EBITDA margin of 33% in the fourth quarter [23][24] Business Line Data and Key Metrics Changes - Urban hotels generated outsized year-over-year growth in the third and fourth quarters of 160% and 200%, respectively, translating to nominal RevPAR of $94 and $88 [19] - Non-urban portfolio RevPAR was approximately $98 in the fourth quarter, driven by strength in non-resort properties, which generated a RevPAR of $118 [20] - Average daily rate (ADR) increased 2% relative to the third quarter across the entire portfolio, with a 100% ADR recapture rate to Q4 2019 [21] Market Data and Key Metrics Changes - January RevPAR was approximately $75, which was 31% below January 2019 levels, but February RevPAR pace was up over 30% from January [11] - The Dallas market recovery is over 80% of 2019 levels, while other gateway urban markets lag behind [36] - January RevPAR at the Embassy Suites in Tucson exceeded last year by nearly 80% and surpassed January 2019 levels [15] Company Strategy and Development Direction - The company was active in transactions, completing over $1 billion of transaction activity in 2021, increasing the number of hotels in the portfolio by 40% [17] - The joint venture with GIC now totals 40 hotels, representing over $1.3 billion of invested capital, which will increase ancillary fee streams for asset and capital project management services [17] - The company plans to continue a more typical renovation program in line with pre-pandemic levels throughout 2022 [26] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in the favorable demand backdrop for the portfolio, anticipating a meaningful return of corporate travel alongside robust leisure demand [12] - The company noted that while staffing shortages and rising labor costs affect the industry, they have managed to operate efficiently with a lean staffing model [24] - Management highlighted that guest satisfaction scores have improved as amenities and services have been restored [68] Other Important Information - The company maintains a liquidity position of nearly $450 million, enhanced through various capital markets transactions [27] - The average interest rate on the balance sheet is 3.3%, with approximately 70% of current outstanding debt fixed [28] - The company expects to exit existing waivers on certain financial covenants in the second quarter of 2022, providing more capital allocation flexibility [28] Q&A Session Summary Question: How does the pace of acceleration in booking trends compare across segments? - Management noted strength in leisure-dominated markets, with midweek performance improving recently [34] Question: What is Summit's leverage to urban recovery post-Newcrest acquisition? - The urban mix has shifted towards Sun Belt markets, with recovery rates varying significantly by market [35] Question: How is the labor market affecting staffing levels? - Staffing levels are currently at about 55% of pre-pandemic levels, with challenges in finding labor persisting [39] Question: What is the outlook for capital allocation and acquisitions? - The company has nearly $450 million in liquidity and plans to be a net acquirer early in the cycle, while remaining opportunistic [43] Question: What benefits are expected from the Aimbridge takeover of Newcrest hotels? - Management anticipates operational synergies and improved performance from the integration of the Newcrest portfolio [47] Question: How does the company view leverage and balance sheet health? - The company assesses balance sheet health holistically, feeling confident about its current position and future deleveraging [51] Question: What is the expected run rate for capital expenditures in the coming years? - The company expects capital expenditures to be elevated in 2022, with a run rate similar to pre-pandemic levels in subsequent years [61] Question: Are there any non-core hotels that could be sold? - Management indicated that while there is always a bottom 10% of the portfolio, they do not feel pressured to sell assets [66]