Summit Hotel Properties Stock Earnings Reports

Q3 2025 highlights: Summit reported same-store RevPAR down 3.7% (ADR down 3.4%, occupancy roughly flat) as reduced government and inbound international travel (each down ~20%) drove a mix shift into lower-rated channels and accounted for nearly half of the year-over-year RevPAR decline. Non-rooms revenue grew (Q3 +5.6%) and operating expense control remained strong (pro forma operating expenses +1.8% YoY, ~2% per occupied room), which helped mitigate EBITDA pressure. Q3 adjusted EBITDA was $39.3M and adjusted FFO was $21.3M ($0.17/share). Capital recycling continues: two noncore hotels sold post-quarter for $39M; since May 2023 the company has sold 12 hotels for >$185M proceeds and eliminated ~$60M of near-term capex needs. Acquisitions (via GIC JV) have higher NOI yields. Balance sheet moves include refinancing a $396M GIC JV term loan to $400M at SOFR+235bps, entering a forward swap to lower fixed rates, and a plan to draw $275M in February to retire convertible notes; pro forma no maturities until 2028, average interest ~4.5%, ~75% of pro rata debt rate-fixed (80% fixed including preferreds). Board declared $0.08 quarterly common dividend (annualized $0.32, ~6% yield; payout ~38% of trailing AFFO). Guidance: Q4 RevPAR expected down 2% to 2.5% YoY (full year RevPAR down ~2.25%–2.5%); FY pro rata interest expense ~$50–55M; pro rata capex targeted $60–65M. 2026 outlook: management expects a more favorable setup driven by easier comps for government travel, major events (2026 World Cup exposure in 6 markets), and constrained new supply supporting recovery.