SUMMIT HOTEL PROPERTIES REPORTS SECOND QUARTER 2025 RESULTS

Core Insights - The company reported a net loss of $1.6 million, or $0.02 per diluted share, for the second quarter of 2025, compared to a net income of $30.8 million, or $0.23 per diluted share, in the same period of 2024 [5][6][29] - Pro forma RevPAR decreased by 3.8% to $128.79, while same store RevPAR decreased by 3.6% to $128.07 compared to the second quarter of 2024 [5][6][29] - The company successfully executed a $50 million share repurchase program, utilizing $15.4 million to repurchase 3.6 million shares at an average price of $4.30 per share, representing a 15% discount to the current trading price [2][5][14] Financial Performance - Total revenues for the second quarter of 2025 were $192.9 million, a slight decrease from $193.9 million in the same quarter of 2024 [5][29] - Pro forma hotel EBITDA decreased to $68.4 million from $75.7 million in the same period in 2024, with a margin contraction of approximately 266 basis points to 35.5% [5][6][29] - Adjusted EBITDAre decreased to $50.9 million from $55.9 million in the second quarter of 2024 [5][6][29] Balance Sheet and Liquidity - The company closed two additional financings, resulting in over $310 million of corporate liquidity and no debt maturities until 2028 [2][19] - The company has outstanding debt of $1.1 billion with a weighted average interest rate of 4.60%, of which 75% is fixed [19] - The company declared a quarterly cash dividend of $0.08 per share, representing an annualized dividend yield of 6.3% based on the closing price of shares [15][19] Strategic Initiatives - The company completed the expansion of Onera Fredericksburg, adding 23 units and increasing the total unit count to 35, with expectations of generating an unlevered yield on cost in the low to mid-teens [16][20] - The company is tracking modestly below the lower end of the guidance ranges for full year Adjusted EBITDAre and Adjusted FFO based on first half results and recent portfolio trends [17][19] Market Position - The RevPAR index increased nearly 150 basis points to 115%, indicating a strong market share despite a decline in same store RevPAR [1][5] - The company maintains a portfolio of high-quality, well-located hotels that are in excellent physical condition, positioning it for long-term growth [1][5]