Full Year Operating Income Increases to
$103.5 million
Full Year Adjusted EBITDAre Grows to
$192.2 million; AFFO increases 5.6%
to $0.96 per share
Completed Over $200
Million of Accretive Transaction Activity in 2024
AUSTIN,
Texas, Feb. 24, 2025 /PRNewswire/ -- Summit Hotel
Properties, Inc. (NYSE: INN) (the "Company"), today announced
results for the three and twelve months ended December 31, 2024.
"We are pleased with our fourth quarter and full-year 2024
financial results, driven by pro forma RevPAR growth that exceeded
industry average growth for the third consecutive year, effective
expense management, and the continued success of our accretive
capital recycling program. These efforts drove nearly six percent
growth in Adjusted FFO in 2024. Despite a low RevPAR growth
environment, pro forma hotel EBITDA margins remained essentially
unchanged year-over-year, underscoring the strength of our
best-in-class operating platform. During the fourth quarter, we
closed on the acquisition of the Hampton Inn Boston-Logan Airport
and the Hilton Garden Inn Tysons Corner for $96 million, which represents an 8.8 percent net
capitalization rate on 2024 net operating income for the two
hotels. This acquisition was facilitated by nearly $150 million of asset sales completed over the
past 18 months for hotels with lower nominal RevPAR levels and
meaningful upcoming capital requirements. Combined, our
recent transaction activity has been accretive to our financial
results, reduced our balance sheet leverage, and enhanced both the
quality and growth profile of our portfolio," said Jonathan P. Stanner, the Company's President and
Chief Executive Officer.
"Our outlook for 2025 remains positive, supported by stable
demand trends and anticipated growth in urban markets, which we
expect to continue to drive our portfolio performance. Expense
pressures normalized throughout 2024, and we are confident in our
ability to continue managing operating costs effectively this year.
Finally, with historically low industry supply growth and a
stabilizing cost environment, our high-quality portfolio and strong
operating platform position us well for a multi-year revenue and
profitability growth cycle as demand strengthens," continued Mr.
Stanner.
Fourth Quarter 2024 Summary
- Net Income: Net income attributable to common
stockholders was $0.7 million, or
$0.01 per diluted share, compared to
a net loss of $16.6 million, or
$0.16 per diluted share, for the
fourth quarter of 2023.
- Pro forma RevPAR: Pro forma RevPAR increased 1.4 percent
to $117.21 compared to the fourth
quarter of 2023. Pro forma ADR increased 0.9 percent to
$164.00 compared to the same period
in 2023, and pro forma occupancy increased 0.5 percent to 71.5
percent.
- Same Store RevPAR: Same store RevPAR increased 1.3
percent to $116.52 compared to the
fourth quarter of 2023. Same store ADR increased 0.8 percent to
$163.55, and same store occupancy
increased 0.4 percent to 71.2 percent.
- Pro Forma Hotel EBITDA(1): Pro forma hotel
EBITDA decreased 2.8 percent to $60.4
million from $62.1 million in
the same period in 2023. Pro forma hotel EBITDA margin contracted
approximately 140 basis points to 34.1 percent. When adjusting for
property tax increases year-over-year, which were primarily related
to refunds received in 2023, pro forma hotel EBITDA margin
contracted approximately 85 basis points.
- Same Store Hotel EBITDA(1): Same store hotel
EBITDA decreased 4.1 percent to $57.1
million from $59.5 million in
the same period in 2023. Same store hotel EBITDA margin contracted
approximately 187 basis points to 33.6 percent. When adjusting for
property tax increases year-over-year, which were primarily related
to refunds received in 2023, same store hotel EBITDA margin
contracted approximately 125 basis points.
- Adjusted EBITDAre(1): Adjusted
EBITDAre decreased to $42.1
million from $46.4 million in
the fourth quarter of 2023.
- Adjusted FFO(1): Adjusted FFO decreased to
$25.2 million, or $0.20 per diluted share, compared to $26.9 million, or $0.22 per diluted share, in the fourth quarter of
2023.
Full Year 2024 Summary
- Net Income: Net income attributable to common
stockholders was $25.1 million, or
$0.22 per diluted share, compared to
a net loss of $28.0 million, or
$0.27 per diluted share, in the same
period of 2023.
- Pro forma RevPAR: Pro forma RevPAR increased 1.8 percent
to $124.13 compared to the same
period of 2023. Pro forma ADR increased 0.6 percent to $167.84, and pro forma occupancy increased 1.2
percent to 74.0 percent.
- Same Store RevPAR: Same store RevPAR increased 1.7
percent to $123.34 compared to the
same period of 2023. Same store ADR increased 0.4 percent to
$167.30, and same store occupancy
increased 1.2 percent to 73.7 percent.
- Pro Forma Hotel EBITDA(1): Pro forma hotel
EBITDA increased 2.0 percent to $264.7
million from $259.5 million,
and pro forma hotel EBITDA margin contracted 7 basis points to 35.6
percent.
- Same Store Hotel EBITDA(1): Same store hotel
EBITDA increased 1.6 percent to $252.5
million from $248.6 million,
and same store hotel EBITDA margin contracted 18 basis points to
35.5 percent.
- Adjusted EBITDAre(1): Adjusted
EBITDAre increased 1.1 percent to $192.2 million from $190.0
million in the same period of 2023.
- Adjusted FFO(1): Adjusted FFO increased 5.6
percent to $119.2 million, or
$0.96 per diluted share, compared to
$112.9 million, or $0.92 per diluted share, in the same period of
2023.
The Company's results for the three and twelve months ended
December 31, 2024 and 2023 are as follows (in thousands,
except per share amounts and metrics):
|
For the Three Months
Ended
December 31,
|
|
For the Twelve
Months
Ended December 31,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
Net income (loss)
attributable to common stockholders
|
$
680
|
|
$
(16,571)
|
|
$
25,141
|
|
$
(27,990)
|
|
Net income (loss) per
diluted share
|
$
0.01
|
|
$
(0.16)
|
|
$
0.22
|
|
$
(0.27)
|
|
Total
revenues
|
$
172,931
|
|
$
177,435
|
|
$
731,783
|
|
$
736,127
|
|
EBITDAre
(1)
|
$
51,499
|
|
$
56,581
|
|
$
236,198
|
|
$
228,882
|
|
Adjusted EBITDAre
(1)
|
$
42,131
|
|
$
46,384
|
|
$
192,192
|
|
$
190,022
|
|
FFO
(1)
|
$
31,603
|
|
$
24,186
|
|
$
115,160
|
|
$
96,778
|
|
Adjusted FFO
(1)
|
$
25,230
|
|
$
26,935
|
|
$
119,206
|
|
$
112,892
|
|
FFO per diluted share
and unit (1) (2)
|
$
0.25
|
|
$
0.20
|
|
$
0.93
|
|
$
0.79
|
|
Adjusted FFO per
diluted share and unit (1) (2)
|
$
0.20
|
|
$
0.22
|
|
$
0.96
|
|
$
0.92
|
|
|
|
|
|
|
|
|
|
Pro Forma
(2)
|
|
|
|
|
|
|
|
|
RevPAR
|
$
117.21
|
|
$
115.62
|
|
$
124.13
|
|
$
121.93
|
|
RevPAR
Growth
|
1.4 %
|
|
|
|
1.8 %
|
|
|
|
Hotel EBITDA
|
$
60,368
|
|
$
62,076
|
|
$
264,712
|
|
$
259,539
|
|
Hotel EBITDA
Margin
|
34.1 %
|
|
35.5 %
|
|
35.6 %
|
|
35.7 %
|
|
Hotel EBITDA Margin
Change
|
(140) bps
|
|
|
|
(7) bps
|
|
|
|
|
|
|
|
|
|
|
|
Same Store
(3)
|
|
|
|
|
|
|
|
|
RevPAR
|
$
116.52
|
|
$
115.07
|
|
$
123.34
|
|
$
121.31
|
|
RevPAR
Growth
|
1.3 %
|
|
|
|
1.7 %
|
|
|
|
Hotel EBITDA
|
$
57,067
|
|
$
59,529
|
|
$
252,456
|
|
$
248,559
|
|
Hotel EBITDA
Margin
|
33.6 %
|
|
35.5 %
|
|
35.5 %
|
|
35.7 %
|
|
Hotel EBITDA Margin
Change
|
(187) bps
|
|
|
|
(18)
bps
|
|
|
|
|
|
(1)
|
See tables later in this press release for a
discussion and reconciliation of net income (loss) 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 December 31, 2024, as if each hotel had been
owned by the Company since January 1, 2023 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, 2023, 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 93 hotels owned as of December 31, 2024, and
at all times during the three and twelve months ended December 31,
2024, and 2023.
|
|
|
Acquisition Activity
During the fourth quarter 2024, the Company, through its joint
venture with GIC, completed the acquisition of the 250-guestroom
Hampton Inn Boston - Logan Airport and the 149-guestroom Hilton
Garden Inn Tysons Corner for a combined purchase price of
$96.0 million, or $241,000 per key. The purchase price represents
an 8.8% capitalization rate based on 2024 net operating income and
no meaningful capital expenditures are planned prior to the fourth
quarter of 2026. The two premium-branded hotels are located
in high barrier-to-entry, gateway city submarkets and generate
RevPAR, EBITDA margin and EBITDA per key metrics that are accretive
to our existing portfolio. The purchase price represents an
attractive going-in yield and a significant discount to replacement
cost.
The transaction was financed with a mix of cash on hand and a
$50.0 million term loan raised in
conjunction with exercising a portion of the accordion option on
the GIC joint venture's existing $200.0
million credit facility. The term loan has an interest rate
of SOFR + 210 basis points, and a fully extended maturity date of
September 2028. The Company's
$24.0 million of required equity for
its 51% share of the transaction was funded primarily from the net
sale proceeds from sale of the Four Points by Sheraton San
Francisco Airport, which was completed in October 2024, as well as cash on hand.
|
Acquired Hotels
(2023 & 2024)
|
|
Count
|
|
Keys
|
|
Date
|
|
Price (1)
|
|
Year 1
Capex (1)
|
Year 1
RevPAR (1)
|
Cap Rate
(4)
|
|
Residence Inn
Scottsdale North
|
|
1
|
|
120
|
|
June 2023
|
|
$
29,000
|
|
$ 1,800
|
$
141
|
8.4 %
|
|
Nordic Lodge Steamboat
Springs
|
|
1
|
|
46
|
|
June 2023
|
|
13,700
|
|
300
|
127
|
7.1 %
|
|
Hampton Inn
Boston-Logan Airport & Hilton Garden Inn Tysons
Corner
|
|
2
|
|
399
|
|
Dec 2024
|
|
96,000
|
|
N/A
|
145
|
8.8 %
|
|
Total
|
|
4
|
|
565
|
|
|
|
$
138,700
|
|
$
2,100
|
$
143
|
8.5 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Since 2023, the Company has acquired four hotels for
$138.7 million through its joint
venture with GIC at a blended capitalization rate of nearly nine
percent, including near-term capital needs.
Disposition Activity
In 2024, the Company and its affiliates sold five hotels for a
combined sales price of nearly $112
million. Since 2023, the Company and its affiliates have
sold a total of 10 hotels for a combined sales price of nearly
$150 million at a blended
capitalization rate of less than 5%, inclusive of an estimated
$47 million of foregone capital
needs, based on the trailing twelve-month net operating income at
the time of each sale. The combined RevPAR for the sold hotels was
$85 which is an approximate 30%
discount to the current pro forma portfolio. The Company's
disposition activity has facilitated nearly a full turn reduction
in its Net Debt to Adjusted EBITDAre leverage ratio, enhanced the
quality and growth profile of the portfolio, significantly reduced
near-term capital requirements, and enabled the acquisition of two
high quality hotels.
|
Sold Hotels (2023
& 2024)
|
|
Count
|
|
Keys
|
|
Date
|
|
Price (1)
|
|
Capex
(1)(2)
|
|
RevPAR (3)
|
Cap Rate
(5)
|
|
Hyatt Place
Chicago/Lombard
|
|
1
|
|
151
|
|
May 2023
|
|
$
10,500
|
|
$ 5,700
|
|
$
76
|
4.7 %
|
|
Hyatt Place
Chicago/Hoffman Estates
|
|
1
|
|
126
|
|
May 2023
|
|
3,000
|
|
7,200
|
|
68
|
0.4 %
|
|
Hilton Garden Inn
Minneapolis/Eden Prairie
|
|
1
|
|
97
|
|
May 2023
|
|
8,200
|
|
4,300
|
|
81
|
3.1 %
|
|
Holiday Inn Express
& Suites Minnetonka
|
|
1
|
|
93
|
|
May 2023
|
|
6,400
|
|
3,300
|
|
74
|
0.5 %
|
|
Hyatt Place
Baltimore/Owings Mills
|
|
1
|
|
123
|
|
Dec 2023
|
|
8,250
|
|
5,200
|
|
69
|
2.7 %
|
|
Hyatt Place
Dallas/Plano
|
|
1
|
|
127
|
|
Feb 2024
|
|
10,250
|
|
5,200
|
|
69
|
2.9 %
|
|
New Orleans (2)
Convention Center
|
|
2
|
|
410
|
|
Apr 2024
|
|
73,000
|
|
10,250
|
|
111
|
7.1 %
|
|
Hilton Garden Inn
College Station
|
|
1
|
|
119
|
|
Apr 2024
|
|
11,000
|
|
2,975
|
|
86
|
8.4 %
|
|
Four Points San
Francisco Airport
|
|
1
|
|
101
|
|
Oct 2024
|
|
17,700
|
|
3,000
|
|
65
|
N/M
(6)
|
|
Total
|
|
10
|
|
1,347
|
|
|
|
$
148,300
|
|
$
47,125
|
|
$
85
|
4.6 %
|
|
|
|
(1)
|
In
thousands.
|
|
(2)
|
Reflects estimated
near-term foregone capital expenditures for
dispositions.
|
|
(3)
|
Reflects RevPAR
for the twelve-month period immediately prior to
sale.
|
|
(4)
|
Based on 2024 Net
Operating Income.
|
|
(5)
|
Based on trailing
twelve month Net Operating Income through the date of
disposition.
|
|
(6)
|
The hotel's Net
Operating Income at the time of sale was
de minimis.
|
|
|
Capital Markets and Balance Sheet
On a pro rata basis as of December 31, 2024, the Company
had the following outstanding indebtedness and liquidity
available:
- Outstanding debt of $1.1 billion
with a weighted average interest rate of 4.55 percent. After giving
effect to interest rate derivative agreements, $774.9 million, or 72 percent, of our outstanding
debt had a fixed interest rate, and $302.9
million, or 28 percent, had a variable interest rate.
- Unrestricted cash and cash equivalents of $32.5 million.
- Total liquidity of approximately $350
million, including unrestricted cash and cash equivalents
and revolving credit facility availability, which reflects a
liquidity enhancement option available for the Company to exercise
at its sole discretion.
Common and Preferred Dividend Declaration
On January 23, 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 5.1 percent,
based on the closing price of shares of the common stock on
February 21, 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 February 28,
2025 to holders of record as of February 14, 2025.
2025 Outlook
The Company is providing its outlook for the full-year 2025
based on 97 lodging assets owned as of year-end 2024. There are no
additional acquisitions, dispositions, or capital markets
activities assumed in the Company's full year 2025 outlook.
|
|
FYE 2025
Outlook
|
|
|
Low
|
|
High
|
|
Pro Forma RevPAR Growth
(1)
|
|
1.00 %
|
|
3.00 %
|
|
Adjusted
EBITDAre
|
|
$
184,000
|
|
$
198,000
|
|
Adjusted FFO
|
|
$
111,900
|
|
$
125,600
|
|
Adjusted FFO per share
of Common Stock and Common Units
|
|
$
0.90
|
|
$
1.00
|
|
Capital Expenditures,
Pro Rata
|
|
$
65,000
|
|
$
85,000
|
|
|
|
(1)
|
All pro forma
information includes operating and financial results for 97 lodging
assets owned as of December 31, 2024, as if each property had been
owned by the Company since January 1, 2024 and will continue to be
owned through the entire year ending December 31, 2025. As a
result, the pro forma information includes operating and financial
results for lodging assets acquired since January 1, 2024, which
may include periods prior to the Company's ownership. Pro forma and
non-GAAP financial measures are unaudited.
|
|
|
Fourth Quarter 2024 Earnings Conference Call
The Company will conduct its quarterly conference call on
February 25, 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
April 30, 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 February 24, 2025, the
Company's portfolio consisted of 97 assets, 53 of which are wholly
owned, with a total of 14,553 guestrooms located in 25 states.
For additional information, please visit the Company's website,
www.shpreit.com, and follow on X at @SummitHotel_INN.
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)
|
|
|
December 31,
2024
|
|
December 31,
2023
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Investments in lodging
property, net
|
|
$
2,746,340
|
|
$
2,736,975
|
|
Investment in lodging
property under development
|
|
7,617
|
|
1,451
|
|
Assets held for sale,
net
|
|
1,650
|
|
65,736
|
|
Cash and cash
equivalents
|
|
40,637
|
|
37,837
|
|
Restricted
cash
|
|
7,721
|
|
9,931
|
|
Right-of-use assets,
net
|
|
33,309
|
|
34,814
|
|
Trade receivables,
net
|
|
18,625
|
|
21,348
|
|
Prepaid expenses and
other
|
|
9,580
|
|
8,865
|
|
Deferred charges,
net
|
|
6,460
|
|
6,659
|
|
Other assets
|
|
24,291
|
|
15,632
|
|
Total
assets
|
|
$
2,896,230
|
|
$
2,939,248
|
|
|
|
|
|
|
LIABILITIES,
REDEEMABLE NON-CONTROLLING INTERESTS
AND EQUITY
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
Debt, net of debt
issuance costs
|
|
$
1,396,710
|
|
$
1,430,668
|
|
Lease liabilities,
net
|
|
24,871
|
|
25,842
|
|
Accounts
payable
|
|
7,450
|
|
4,827
|
|
Accrued expenses and
other
|
|
82,153
|
|
81,215
|
|
Total
liabilities
|
|
1,511,184
|
|
1,542,552
|
|
|
|
|
|
|
Redeemable
non-controlling interests
|
|
50,219
|
|
50,219
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
909,545
|
|
911,195
|
|
Non-controlling
interests
|
|
425,282
|
|
435,282
|
|
Total
equity
|
|
1,334,827
|
|
1,346,477
|
|
Total liabilities,
redeemable non-controlling interests and equity
|
|
$
2,896,230
|
|
$
2,939,248
|
|
Summit Hotel
Properties, Inc.
Consolidated
Statements of Operations
(In thousands,
except per share amounts)
|
|
|
For the Three
Months
Ended December 31,
|
|
For the Twelve
Months
Ended December 31,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
(Unaudited)
|
|
|
|
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Room
|
|
$
152,849
|
|
$
157,081
|
|
$
650,713
|
|
$
656,063
|
|
Food and
beverage
|
|
10,691
|
|
10,665
|
|
40,865
|
|
41,513
|
|
Other
|
|
9,391
|
|
9,689
|
|
40,205
|
|
38,551
|
|
Total
revenues
|
|
172,931
|
|
177,435
|
|
731,783
|
|
736,127
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
Room
|
|
35,487
|
|
35,798
|
|
146,790
|
|
148,005
|
|
Food and
beverage
|
|
7,834
|
|
7,901
|
|
30,964
|
|
31,580
|
|
Other lodging property
operating expenses
|
|
54,348
|
|
55,121
|
|
224,409
|
|
224,901
|
|
Property taxes,
insurance and other
|
|
13,294
|
|
11,859
|
|
54,116
|
|
55,167
|
|
Management
fees
|
|
3,807
|
|
4,478
|
|
15,866
|
|
18,452
|
|
Depreciation and
amortization
|
|
36,471
|
|
38,624
|
|
146,436
|
|
150,924
|
|
Corporate general and
administrative
|
|
7,403
|
|
7,305
|
|
31,891
|
|
32,530
|
|
Transaction
costs
|
|
—
|
|
(11)
|
|
10
|
|
13
|
|
Loss on impairment and
write-down of assets
|
|
6,723
|
|
16,661
|
|
6,723
|
|
16,661
|
|
Recovery of credit
losses
|
|
—
|
|
(730)
|
|
—
|
|
(1,230)
|
|
Total
expenses
|
|
165,367
|
|
177,006
|
|
657,205
|
|
677,003
|
|
Gain (loss) on
disposal of assets, net
|
|
473
|
|
(1)
|
|
28,912
|
|
(337)
|
|
Operating
income
|
|
8,037
|
|
428
|
|
103,490
|
|
58,787
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(19,792)
|
|
(21,621)
|
|
(82,632)
|
|
(86,798)
|
|
Interest
income
|
|
433
|
|
498
|
|
1,906
|
|
1,688
|
|
Gain on extinguishment
of debt
|
|
—
|
|
—
|
|
3,000
|
|
—
|
|
Other income,
net
|
|
571
|
|
547
|
|
4,384
|
|
1,005
|
|
Total other expense,
net
|
|
(18,788)
|
|
(20,576)
|
|
(73,342)
|
|
(84,105)
|
|
(Loss) income from
continuing operations before income taxes
|
|
(10,751)
|
|
(20,148)
|
|
30,148
|
|
(25,318)
|
|
Income tax benefit
(expense)
|
|
11,667
|
|
(1,119)
|
|
8,743
|
|
(2,798)
|
|
Net income
(loss)
|
|
916
|
|
(21,267)
|
|
38,891
|
|
(28,116)
|
|
Less - Loss
attributable to non-controlling interests
|
|
(4,389)
|
|
(9,321)
|
|
(4,751)
|
|
(18,627)
|
|
Net income (loss)
attributable to Summit Hotel Properties, Inc. before preferred
dividends
|
|
5,305
|
|
(11,946)
|
|
43,642
|
|
(9,489)
|
|
Less - Distributions to
and accretion of redeemable non-controlling interests
|
|
(656)
|
|
(656)
|
|
(2,626)
|
|
(2,626)
|
|
Less - Preferred
dividends
|
|
(3,969)
|
|
(3,969)
|
|
(15,875)
|
|
(15,875)
|
|
Net income (loss)
attributable to common stockholders
|
|
$
680
|
|
$
(16,571)
|
|
$
25,141
|
|
$
(27,990)
|
|
|
|
|
|
|
|
|
|
|
Income (loss) per
common share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.01
|
|
$
(0.16)
|
|
$
0.23
|
|
$
(0.27)
|
|
Diluted
|
|
$
0.01
|
|
$
(0.16)
|
|
$
0.22
|
|
$
(0.27)
|
|
Weighted-average
common shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
106,033
|
|
105,666
|
|
105,927
|
|
105,548
|
|
Diluted
|
|
107,027
|
|
105,666
|
|
132,365
|
|
105,548
|
|
Summit Hotel
Properties, Inc.
Reconciliation of
Net Income (Loss) to Non-GAAP Measures - Funds From
Operations
|
|
(Unaudited)
|
|
(In thousands,
except per share and unit amounts)
|
|
|
For the Three
Months
Ended December 31,
|
|
For the Twelve
Months
Ended December 31,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net income
(loss)
|
|
$
916
|
|
$
(21,267)
|
|
$
38,891
|
|
$
(28,116)
|
|
Preferred
dividends
|
|
(3,969)
|
|
(3,969)
|
|
(15,875)
|
|
(15,875)
|
|
Distributions to and
accretion of redeemable non-controlling interests
|
|
(656)
|
|
(656)
|
|
(2,626)
|
|
(2,626)
|
|
Loss related to
non-controlling interests in consolidated joint ventures
|
|
4,488
|
|
6,731
|
|
8,499
|
|
14,824
|
|
Net income (loss)
applicable to common shares and Common Units
|
|
779
|
|
(19,161)
|
|
28,889
|
|
(31,793)
|
|
Real estate-related
depreciation
|
|
35,903
|
|
37,436
|
|
142,493
|
|
146,187
|
|
Loss on impairment and
write-down of assets
|
|
6,723
|
|
16,661
|
|
6,723
|
|
16,661
|
|
(Gain) loss on disposal
of assets and other dispositions, net
|
|
(473)
|
|
1
|
|
(28,912)
|
|
385
|
|
FFO adjustments related
to non-controlling interests in consolidated joint
ventures
|
|
(11,329)
|
|
(10,751)
|
|
(34,033)
|
|
(34,662)
|
|
FFO applicable to
common shares and Common Units
|
|
31,603
|
|
24,186
|
|
115,160
|
|
96,778
|
|
Recoveries of credit
losses
|
|
—
|
|
(730)
|
|
—
|
|
(1,230)
|
|
Amortization of
deferred financing costs
|
|
1,702
|
|
1,531
|
|
6,582
|
|
5,910
|
|
Amortization of
franchise fees
|
|
177
|
|
156
|
|
671
|
|
595
|
|
Amortization of
intangible assets, net
|
|
266
|
|
909
|
|
2,786
|
|
3,642
|
|
Equity-based
compensation
|
|
1,795
|
|
1,829
|
|
8,132
|
|
7,742
|
|
Transaction
costs
|
|
—
|
|
(11)
|
|
10
|
|
13
|
|
Debt transaction
costs
|
|
—
|
|
43
|
|
647
|
|
461
|
|
Gain on extinguishment
of debt
|
|
—
|
|
—
|
|
(3,000)
|
|
—
|
|
Non-cash interest
income
|
|
—
|
|
(134)
|
|
(400)
|
|
(531)
|
|
Non-cash lease expense,
net
|
|
132
|
|
113
|
|
464
|
|
481
|
|
Casualty losses,
net
|
|
814
|
|
261
|
|
177
|
|
2,112
|
|
Deferred tax
expense
|
|
765
|
|
21
|
|
762
|
|
84
|
|
Reversal of valuation
allowance on deferred tax assets
|
|
(12,061)
|
|
—
|
|
(12,061)
|
|
—
|
|
AFFO adjustments
related to non-controlling interests in consolidated joint
ventures
|
|
259
|
|
(981)
|
|
(1,468)
|
|
(3,612)
|
|
Non-cash state taxes
and other, net
|
|
(222)
|
|
(258)
|
|
744
|
|
447
|
|
AFFO applicable to
common shares and Common Units
|
|
$
25,230
|
|
$
26,935
|
|
$
119,206
|
|
$
112,892
|
|
FFO per share of
common share/Common Unit
|
|
$
0.25
|
|
$
0.20
|
|
$
0.93
|
|
$
0.79
|
|
AFFO per common
share/Common Unit
|
|
$
0.20
|
|
$
0.22
|
|
$
0.96
|
|
$
0.92
|
|
Weighted-average
diluted common shares/Common Units:
|
|
|
|
|
|
|
|
|
|
FFO and AFFO
(2)
|
|
124,502
|
|
122,486
|
|
124,313
|
|
122,355
|
|
|
|
(1)
|
Non-cash interest
income relates to the amortization of the discount on a note
receivable. The discount on the note receivable was recorded at
inception of the related loan based on the estimated value of the
embedded purchase option in the note receivable.
|
|
|
|
(2)
|
The Company includes
the outstanding OP units issued by Summit Hotel OP, LP, the
Company's operating partnership, held by limited partners other
than the Company because the OP units are redeemable for cash or,
at the Company's option, shares of the Company's common stock on a
one-for-one basis.
|
|
Summit Hotel
Properties, Inc.
Reconciliation of
Weighted Average Diluted Common Shares
(Unaudited)
(In
thousands)
|
|
|
For the Three
Months
Ended December 31,
|
|
For the Twelve
Months
Ended December 31,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Weighted average common
shares outstanding - diluted
|
|
107,027
|
|
105,666
|
|
132,365
|
|
105,548
|
|
Adjusted
for:
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjustment for
restricted stock awards (1)
|
|
1,532
|
|
862
|
|
1,780
|
|
837
|
|
Non-GAAP adjustment for
dilutive effects of Common Units
|
|
15,943
|
|
15,958
|
|
15,946
|
|
15,970
|
|
Non-GAAP adjustment for
dilutive effect of shares of common stock issuable upon conversion
of convertible debt (2)
|
|
—
|
|
—
|
|
(25,778)
|
|
—
|
|
Non-GAAP weighted
diluted share of common stock and Common Units
|
|
124,502
|
|
122,486
|
|
124,313
|
|
122,355
|
|
|
|
(1)
|
Adjustment reflects
the difference between the total weighted-average unvested
restricted time-based shares outstanding as of the reporting date
and the weighted-average restricted time-based shares computed for
diluted earnings per share under the treasury stock method in
accordance with GAAP, plus the difference between the estimated
total weighted average unvested restricted performance-based shares
expected to vest based on achievement of the performance measures
as if the vesting date were the reporting date and the estimated
weighted-average unvested restricted performance-based shares
computed for diluted earnings per share under the treasury stock
method in accordance with GAAP.
|
|
|
|
(2)
|
The weighted-average
shares of Common Stock and Common Units used to calculate FFO
and AFFO per share of Common Stock and Common Unit for the three
and twelve months ended December 31, 2024 and 2023 exclude the
potential dilution related to our Convertible Notes as we intend to
settle the principal value of the Convertible Notes in
cash.
|
|
Summit Hotel
Properties, Inc.
Reconciliation of
Net Income (Loss) to Non-GAAP Measures - EBITDAre
|
|
(Unaudited)
|
|
(In
thousands)
|
|
|
For the Three
Months
Ended December 31,
|
|
For the Twelve
Months
Ended December 31,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net income
(loss)
|
|
$
916
|
|
$
(21,267)
|
|
$
38,891
|
|
$
(28,116)
|
|
Depreciation and
amortization
|
|
36,471
|
|
38,624
|
|
146,436
|
|
150,924
|
|
Interest
expense
|
|
19,792
|
|
21,621
|
|
82,632
|
|
86,798
|
|
Interest income on cash
deposits
|
|
(263)
|
|
(178)
|
|
(829)
|
|
(568)
|
|
Income tax (benefit)
expense
|
|
(11,667)
|
|
1,119
|
|
(8,743)
|
|
2,798
|
|
EBITDA
|
|
45,249
|
|
39,919
|
|
258,387
|
|
211,836
|
|
Loss on impairment and
write-down of assets
|
|
6,723
|
|
16,661
|
|
6,723
|
|
16,661
|
|
(Gain) loss on disposal
of assets and other dispositions, net
|
|
(473)
|
|
1
|
|
(28,912)
|
|
385
|
|
EBITDAre
|
|
51,499
|
|
56,581
|
|
236,198
|
|
228,882
|
|
Recoveries of credit
losses
|
|
—
|
|
(730)
|
|
—
|
|
(1,230)
|
|
Amortization of key
money liabilities
|
|
(124)
|
|
(120)
|
|
(486)
|
|
(498)
|
|
Equity-based
compensation
|
|
1,795
|
|
1,829
|
|
8,132
|
|
7,742
|
|
Transaction
costs
|
|
—
|
|
(11)
|
|
10
|
|
13
|
|
Debt transaction
costs
|
|
—
|
|
43
|
|
647
|
|
461
|
|
Gain on extinguishment
of debt
|
|
—
|
|
—
|
|
(3,000)
|
|
—
|
|
Non-cash interest
income
|
|
—
|
|
(134)
|
|
(400)
|
|
(531)
|
|
Non-cash lease expense,
net
|
|
132
|
|
113
|
|
464
|
|
481
|
|
Casualty losses,
net
|
|
814
|
|
261
|
|
177
|
|
2,112
|
|
Loss related to
non-controlling interests in consolidated joint ventures
|
|
4,488
|
|
6,731
|
|
8,499
|
|
14,824
|
|
Adjustments related to
non-controlling interests in consolidated joint ventures
|
|
(16,251)
|
|
(17,921)
|
|
(58,793)
|
|
(62,681)
|
|
Non-cash state taxes
and other, net
|
|
(222)
|
|
(258)
|
|
744
|
|
447
|
|
Adjusted
EBITDAre
|
|
$
42,131
|
|
$
46,384
|
|
$
192,192
|
|
$
190,022
|
|
|
|
(1)
|
Non-cash interest
income relates to the amortization of the discount on a note
receivable. The discount on the note receivable was recorded at
inception of the related loan based on the estimated fair value of
the embedded purchase option in the note receivable.
|
|
Summit Hotel
Properties, Inc.
Pro Forma Hotel
Operating Data
(Unaudited)
(Dollars in
thousands)
|
|
|
For the Three Months
Ended
December 31,
|
|
For the Twelve
Months Ended
December 31,
|
|
Pro Forma Operating
Data: (1)
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Pro forma room
revenue
|
|
$
156,955
|
|
$
154,808
|
|
$
661,199
|
|
$
647,679
|
|
Pro forma other hotel
operations revenue
|
|
20,299
|
|
20,246
|
|
81,523
|
|
79,193
|
|
Pro forma total
revenues
|
|
177,254
|
|
175,054
|
|
742,722
|
|
726,872
|
|
Pro forma total hotel
operating expenses
|
|
116,886
|
|
112,978
|
|
478,010
|
|
467,333
|
|
Pro forma hotel
EBITDA
|
|
$
60,368
|
|
$
62,076
|
|
$
264,712
|
|
$
259,539
|
|
Pro forma hotel EBITDA
Margin
|
|
34.1 %
|
|
35.5 %
|
|
35.6 %
|
|
35.7 %
|
|
|
|
|
|
|
|
|
|
|
Reconciliations of
Non-GAAP financial measures to comparable GAAP financial
measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
$
172,931
|
|
$
177,435
|
|
$
731,783
|
|
$
736,127
|
|
Total revenues -
acquisitions
|
|
4,586
|
|
5,330
|
|
21,843
|
|
26,152
|
|
Total revenues -
dispositions
|
|
(263)
|
|
(7,711)
|
|
(10,904)
|
|
(35,407)
|
|
Pro forma total
revenues (1)
|
|
177,254
|
|
175,054
|
|
742,722
|
|
726,872
|
|
|
|
|
|
|
|
|
|
|
Hotel Operating
Expenses:
|
|
|
|
|
|
|
|
|
|
Hotel operating
expenses
|
|
$
114,770
|
|
$
115,157
|
|
$
472,145
|
|
$
478,105
|
|
Hotel operating
expenses - acquisitions
|
|
2,261
|
|
3,659
|
|
13,609
|
|
16,622
|
|
Hotel operating
expenses - dispositions
|
|
(145)
|
|
(5,838)
|
|
(7,744)
|
|
(27,394)
|
|
Pro forma hotel
operating expense (1)
|
|
116,886
|
|
112,978
|
|
478,010
|
|
467,333
|
|
|
|
|
|
|
|
|
|
|
Hotel
EBITDA:
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
8,037
|
|
428
|
|
103,490
|
|
58,787
|
|
(Gain) loss on disposal
of assets and other dispositions, net
|
|
(473)
|
|
1
|
|
(28,912)
|
|
337
|
|
Loss on impairment and
write-down of assets
|
|
6,723
|
|
16,661
|
|
6,723
|
|
16,661
|
|
Recoveries of credit
losses
|
|
—
|
|
(730)
|
|
—
|
|
(1,230)
|
|
Transaction
costs
|
|
—
|
|
(11)
|
|
10
|
|
13
|
|
Corporate general and
administrative
|
|
7,403
|
|
7,305
|
|
31,891
|
|
32,530
|
|
Depreciation and
amortization
|
|
36,471
|
|
38,624
|
|
146,436
|
|
150,924
|
|
Hotel
EBITDA
|
|
58,161
|
|
62,278
|
|
259,638
|
|
258,022
|
|
Hotel EBITDA -
acquisitions (2)
|
|
(976)
|
|
(876)
|
|
(4,022)
|
|
(1,450)
|
|
Hotel EBITDA -
dispositions (3)
|
|
(118)
|
|
(1,873)
|
|
(3,160)
|
|
(8,013)
|
|
Same Store hotel
EBITDA
|
|
57,067
|
|
59,529
|
|
252,456
|
|
248,559
|
|
Hotel EBITDA -
acquisitions
|
|
3,301
|
|
2,547
|
|
12,256
|
|
10,980
|
|
Pro forma hotel
EBITDA (1)
|
|
$
60,368
|
|
$
62,076
|
|
$
264,712
|
|
$
259,539
|
|
|
|
(1)
|
Unaudited pro forma
information includes operating results for 97 hotels owned as of
December 31, 2024, as if all such hotels had been owned by the
Company since January 1, 2023. For hotels acquired by the Company
after January 1, 2023 (the "Acquired Hotels"), the Company has
included in the pro forma information the financial results of each
of the Acquired Hotels for the period from January 1, 2023, to
December 31, 2024. The financial results for the Acquired Hotels
include information provided by the third-party owner of such
Acquired Hotel prior to purchase by the Company and have not been
audited or reviewed by our auditors or adjusted by us. For
any hotels sold by the Company after January 1, 2023 (the "Disposed
Hotels"), the Company excludes the financial results of each of the
Disposed Hotels from January 1, 2023 to the date the Disposed
Hotels were sold by the Company in determining pro forma
total revenues and pro forma hotel operating expenses. The pro
forma information is included to enable comparison of results for
the current reporting period to results for the comparable period
of the prior year and are not indicative of future
results.
|
|
|
|
(2)
|
For any hotels
acquired by the Company after January 1, 2023 (the "Acquired
Hotels"), the Company has excluded the financial results of each of
the Acquired Hotels for the period the Acquired Hotels were
purchased by the Company to December 31, 2024 (the "Acquisition
Period") in determining same-store hotel
EBITDA.
|
|
|
|
(3)
|
For hotels sold by
the Company between January 1, 2023, and December 31, 2024 (the
"Disposed Hotels"), the Company has excluded the financial results
of each of the Disposed Hotels for the period beginning on January
1, 2023, and ending on the date the Disposed Hotels were sold by
the Company (the "Disposition Period") in determining same-store
hotel EBITDA.
|
|
Summit Hotel
Properties, Inc.
Pro Forma Hotel
Operating Data
(Unaudited)
(In thousands,
except operating statistics)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2024
|
|
Year
Ended
|
|
Pro Forma Operating
Data: (1)
|
|
Q1
|
|
Q2
|
|
Q3
|
|
Q4
|
|
December 31,
2024
|
|
Pro forma room
revenue
|
|
$
164,004
|
|
$
177,392
|
|
$
162,848
|
|
$
156,955
|
|
$
661,199
|
|
Pro forma other hotel
operations revenue
|
|
20,488
|
|
21,047
|
|
19,689
|
|
20,299
|
|
81,523
|
|
Pro forma total
revenues
|
|
184,492
|
|
198,439
|
|
182,537
|
|
177,254
|
|
742,722
|
|
Pro forma total hotel
operating expenses
|
|
117,992
|
|
122,775
|
|
120,357
|
|
116,886
|
|
478,010
|
|
Pro forma hotel
EBITDA
|
|
$
66,500
|
|
$
75,664
|
|
$
62,180
|
|
$
60,368
|
|
$
264,712
|
|
Pro forma hotel EBITDA
Margin
|
|
36.0 %
|
|
38.1 %
|
|
34.1 %
|
|
34.1 %
|
|
35.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro Forma
Statistics: (1)
|
|
|
|
|
|
|
|
|
|
|
|
Rooms sold
|
|
955,533
|
|
1,035,292
|
|
991,580
|
|
957,027
|
|
3,939,432
|
|
Rooms
available
|
|
1,324,414
|
|
1,324,414
|
|
1,338,979
|
|
1,339,060
|
|
5,326,867
|
|
Occupancy
|
|
72.1 %
|
|
78.2 %
|
|
74.1 %
|
|
71.5 %
|
|
74.0 %
|
|
ADR
|
|
$
171.64
|
|
$
171.34
|
|
$
164.23
|
|
$
164.00
|
|
$
167.84
|
|
RevPAR
|
|
$
123.83
|
|
$
133.94
|
|
$
121.62
|
|
$
117.21
|
|
$
124.13
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual
Statistics:
|
|
|
|
|
|
|
|
|
|
|
|
Rooms sold
|
|
969,479
|
|
1,014,864
|
|
966,019
|
|
935,012
|
|
3,885,374
|
|
Rooms
available
|
|
1,351,150
|
|
1,306,712
|
|
1,311,563
|
|
1,312,953
|
|
5,282,378
|
|
Occupancy
|
|
71.8 %
|
|
77.7 %
|
|
73.7 %
|
|
71.2 %
|
|
73.6 %
|
|
ADR
|
|
$
172.70
|
|
$
170.49
|
|
$
162.95
|
|
$
163.47
|
|
$
167.48
|
|
RevPAR
|
|
$
123.92
|
|
$
132.41
|
|
$
120.02
|
|
$
116.42
|
|
$
123.19
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliations of
Non-GAAP financial measures to comparable GAAP financial
measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
$
188,142
|
|
$
193,903
|
|
$
176,807
|
|
$
172,931
|
|
$
731,783
|
|
Total revenues -
acquisitions
|
|
4,075
|
|
6,556
|
|
6,626
|
|
4,586
|
|
21,843
|
|
Total revenues -
dispositions
|
|
(7,725)
|
|
(2,020)
|
|
(896)
|
|
(263)
|
|
(10,904)
|
|
Pro forma total
revenues (1)
|
|
184,492
|
|
198,439
|
|
182,537
|
|
177,254
|
|
742,722
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel Operating
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Hotel operating
expenses
|
|
119,618
|
|
120,874
|
|
116,883
|
|
114,770
|
|
472,145
|
|
Hotel operating
expenses - acquisitions
|
|
3,309
|
|
3,979
|
|
4,060
|
|
2,261
|
|
13,609
|
|
Hotel operating
expenses - dispositions
|
|
(4,935)
|
|
(2,078)
|
|
(586)
|
|
(145)
|
|
(7,744)
|
|
Pro forma hotel
operating expenses (1)
|
|
117,992
|
|
122,775
|
|
120,357
|
|
116,886
|
|
478,010
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
23,489
|
|
56,209
|
|
15,755
|
|
8,037
|
|
103,490
|
|
Gain on disposal of
assets, net
|
|
(75)
|
|
(28,342)
|
|
(22)
|
|
(473)
|
|
(28,912)
|
|
Loss on impairment and
write-down of assets
|
|
—
|
|
—
|
|
—
|
|
6,723
|
|
6,723
|
|
Hotel acquisition and
transition costs
|
|
—
|
|
—
|
|
10
|
|
—
|
|
10
|
|
Corporate general and
administrative
|
|
8,311
|
|
8,704
|
|
7,473
|
|
7,403
|
|
31,891
|
|
Depreciation and
amortization
|
|
36,799
|
|
36,458
|
|
36,708
|
|
36,471
|
|
146,436
|
|
Hotel
EBITDA
|
|
68,524
|
|
73,029
|
|
59,924
|
|
58,161
|
|
259,638
|
|
Hotel EBITDA -
acquisitions (2)
|
|
(1,838)
|
|
(709)
|
|
(499)
|
|
(976)
|
|
(4,022)
|
|
Hotel EBITDA -
dispositions (3)
|
|
(2,790)
|
|
58
|
|
(310)
|
|
(118)
|
|
(3,160)
|
|
Same store hotel
EBITDA
|
|
63,896
|
|
72,378
|
|
59,115
|
|
57,067
|
|
252,456
|
|
Hotel EBITDA -
acquisitions
|
|
2,604
|
|
3,286
|
|
3,065
|
|
3,301
|
|
12,256
|
|
Pro forma hotel
EBITDA (1)
|
|
$
66,500
|
|
$
75,664
|
|
$
62,180
|
|
$
60,368
|
|
$
264,712
|
|
|
|
(1)
|
Unaudited pro forma
information includes operating results for 97 hotels owned as of
December 31, 2024, as if all such hotels had been owned by the
Company since January 1, 2024. For hotels acquired by the Company
after January 1, 2024, the Company has included in the pro forma
information the financial results of each of the hotels acquired
for the period from January 1, 2024, to December 31, 2024. The
financial results for the hotels acquired include information
provided by the third-party owner of such hotel prior to purchase
by the Company and have not been audited or reviewed by our
auditors or adjusted by us. For any hotels sold by the Company
after January 1, 2024, the Company excludes the financial results
of each of those hotels from January 1, 2024 to the date the hotels
were sold by the Company in determining pro forma total
revenues and pro forma hotel operating expenses. The pro forma
information is included to enable comparison of results for the
current reporting period to results for the comparable period of
the prior year and are not indicative of future
results.
|
|
|
|
(2)
|
For any hotels
acquired by the Company after January 1, 2023 (the "Acquired
Hotels"), the Company has excluded the financial results of each of
the Acquired Hotels for the period the Acquired Hotels were
purchased by the Company to December 31, 2024 (the "Acquisition
Period") in determining same-store hotel EBITDA.
|
|
|
|
(3)
|
For hotels sold by
the Company between January 1, 2024, and December 31, 2024, the
Company has excluded the financial results of each of the hotels
for the period beginning on January 1, 2024, and ending on the date
the hotels were sold by the Company in determining same-store hotel
EBITDA.
|
|
Summit Hotel
Properties, Inc.
Pro Forma and Same
Store Data
(Unaudited)
|
|
|
For the Three Months
Ended
December 31,
|
|
For the Twelve
Months
Ended December 31,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Pro Forma
(1)
|
|
|
|
|
|
|
|
|
|
Rooms sold
|
|
957,027
|
|
952,458
|
|
3,939,432
|
|
3,880,938
|
|
Rooms
available
|
|
1,339,060
|
|
1,338,968
|
|
5,326,867
|
|
5,311,998
|
|
Occupancy
|
|
71.5 %
|
|
71.1 %
|
|
74.0 %
|
|
73.1 %
|
|
ADR
|
|
$
164.00
|
|
$
162.54
|
|
$ 167.84
|
|
$ 166.89
|
|
RevPAR
|
|
$
117.21
|
|
$
115.62
|
|
$ 124.13
|
|
$ 121.93
|
|
|
|
|
|
|
|
|
|
|
Occupancy
change
|
|
0.5 %
|
|
|
|
1.2 %
|
|
|
|
ADR
change
|
|
0.9 %
|
|
|
|
0.6 %
|
|
|
|
RevPAR
change
|
|
1.4 %
|
|
|
|
1.8 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
December 31,
|
|
For the Twelve
Months
Ended December 31,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Same-Store
(2)
|
|
|
|
|
|
|
|
|
|
Rooms sold
|
|
916,844
|
|
912,811
|
|
3,774,328
|
|
3,717,805
|
|
Rooms
available
|
|
1,286,988
|
|
1,286,896
|
|
5,119,711
|
|
5,105,408
|
|
Occupancy
|
|
71.2 %
|
|
70.9 %
|
|
73.7 %
|
|
72.8 %
|
|
ADR
|
|
$
163.55
|
|
$
162.23
|
|
$ 167.30
|
|
$ 166.59
|
|
RevPAR
|
|
$
116.52
|
|
$
115.07
|
|
$ 123.34
|
|
$ 121.31
|
|
|
|
|
|
|
|
|
|
|
Occupancy
change
|
|
0.4 %
|
|
|
|
1.2 %
|
|
|
|
ADR
change
|
|
0.8 %
|
|
|
|
0.4 %
|
|
|
|
RevPAR
change
|
|
1.3 %
|
|
|
|
1.7 %
|
|
|
|
|
|
(1)
|
Unaudited pro forma
information includes operating results for 97 hotels owned as of
December 31, 2024, as if each hotel had been owned by the Company
since January 1, 2023. As a result, these pro forma operating and
financial measures include operating results for certain hotels for
periods prior to the Company's ownership.
|
|
|
|
(2)
|
Same-store
information includes operating results for 93 hotels owned by the
Company as of January 1, 2023, and at all times during the three
and twelve months ended December 31, 2024, and 2023.
|
|
Summit Hotel
Properties, Inc.
Reconciliation of
Net (Loss) Income to Non-GAAP Measures - EBITDA for Financial
Outlook
|
|
(In
thousands)
|
|
(Unaudited)
|
|
|
FYE 2025
Outlook
|
|
|
Low
|
|
High
|
|
Net (loss)
income
|
|
$
(3,400)
|
|
$
13,400
|
|
Depreciation and
amortization
|
|
148,600
|
|
148,600
|
|
Interest
expense
|
|
79,800
|
|
79,000
|
|
Interest
income
|
|
(500)
|
|
(500)
|
|
Income tax
expense
|
|
3,000
|
|
3,000
|
|
EBITDA and
EBITDAre
|
|
227,500
|
|
243,500
|
|
Equity-based
compensation
|
|
8,800
|
|
8,800
|
|
Debt transaction
costs
|
|
100
|
|
100
|
|
Other non-cash items,
net
|
|
2,800
|
|
2,800
|
|
Loss (income) related
to non-controlling interests in consolidated joint
ventures
|
|
1,200
|
|
(1,900)
|
|
Adjustments related to
non-controlling interests in consolidated joint ventures
|
|
(56,400)
|
|
(55,300)
|
|
Adjusted
EBITDAre
|
|
$
184,000
|
|
$
198,000
|
|
Summit Hotel
Properties, Inc.
Reconciliation of
Net (Loss) Income to Non-GAAP Measures - Funds From Operations for
Financial Outlook
|
|
(In thousands except
per share and unit)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
FYE 2025
Outlook
|
|
|
Low
|
|
High
|
|
Net (loss)
income
|
|
$
(3,400)
|
|
$
13,400
|
|
Preferred
dividends
|
|
(15,900)
|
|
(15,900)
|
|
Distributions to and
accretion of redeemable non-controlling interests
|
|
(2,600)
|
|
(2,600)
|
|
Loss (income) related
to non-controlling interests in consolidated joint
ventures
|
|
1,200
|
|
(1,900)
|
|
Net loss applicable
to common shares and Common Units
|
|
(20,700)
|
|
(7,000)
|
|
Real estate-related
depreciation
|
|
147,900
|
|
147,900
|
|
Adjustments related to
non-controlling interests in consolidated joint ventures
|
|
(31,700)
|
|
(31,700)
|
|
FFO applicable to
common shares and Common Units
|
|
95,500
|
|
109,200
|
|
Amortization of
deferred financing costs
|
|
6,500
|
|
6,500
|
|
Amortization of
franchise fees
|
|
700
|
|
700
|
|
Equity-based
compensation
|
|
8,800
|
|
8,800
|
|
Debt transaction
costs
|
|
100
|
|
100
|
|
Other non-cash items,
net
|
|
2,800
|
|
2,800
|
|
Adjustments related to
non-controlling interests in consolidated joint ventures
|
|
(2,500)
|
|
(2,500)
|
|
AFFO applicable to
common shares and Common Units
|
|
$
111,900
|
|
$
125,600
|
|
Weighted average
diluted common shares/Common Units for FFO and AFFO
|
|
125,000
|
|
125,000
|
|
FFO per common share
and Common Unit
|
|
$
0.76
|
|
$
0.87
|
|
AFFO per common
share/Common Unit
|
|
$
0.90
|
|
$
1.00
|
|
Non-GAAP Financial Measures
We disclose certain "non-GAAP financial measures," which are
measures of our historical financial performance. Non-GAAP
financial measures are financial measures not prescribed by
Generally Accepted Accounting Principles ("GAAP"). These measures
are as follows: (i) Funds From Operations ("FFO") and Adjusted
Funds from Operations ("AFFO"), (ii) Earnings before Interest,
Taxes, Depreciation and Amortization ("EBITDA"), Earnings before
Interest, Taxes, Depreciation and Amortization for Real Estate
("EBITDAre"), Adjusted EBITDAre, and hotel EBITDA (as
described below). We caution investors that amounts presented in
accordance with our definitions of non-GAAP financial measures may
not be comparable to similar measures disclosed by other companies,
since not all companies calculate these non-GAAP financial measures
in the same manner. Our non-GAAP financial measures should be
considered along with, but not as alternatives to, net income
(loss) as a measure of our operating performance. Our non-GAAP
financial measures may include funds that may not be available for
our discretionary use due to functional requirements to conserve
funds for capital expenditures, property acquisitions, debt service
obligations and other commitments and uncertainties. Although we
believe that our non-GAAP financial measures can enhance the
understanding of our financial condition and results of operations,
these non-GAAP financial measures are not necessarily better
indicators of any trend as compared to a comparable measure
prescribed by GAAP such as net income (loss).
Funds From Operations ("FFO") and Adjusted FFO
("AFFO")
As defined by Nareit, FFO represents net income or loss
(computed in accordance with GAAP), excluding preferred dividends,
gains (or losses) from sales of real property, impairment losses on
real estate assets, items classified by GAAP as extraordinary, the
cumulative effect of changes in accounting principles, plus
depreciation and amortization related to real estate assets, and
adjustments for unconsolidated partnerships, and joint ventures.
AFFO represents FFO excluding amortization of deferred financing
costs, franchise fees, equity-based compensation expense, debt
transaction costs, premiums on redemption of preferred shares,
losses from net casualties, non-cash lease expense, non-cash
interest income and non-cash income tax related adjustments to our
deferred tax assets. Unless otherwise indicated, we present FFO and
AFFO applicable to our common shares and common units. We present
FFO and AFFO because we consider FFO and AFFO an important
supplemental measure of our operational performance and believe it
is frequently used by securities analysts, investors, and other
interested parties in the evaluation of REITs, many of which
present FFO and AFFO when reporting their results. FFO and AFFO are
intended to exclude GAAP historical cost depreciation and
amortization, which assumes that the value of real estate assets
diminishes ratably over time. Historically, however, real estate
values have risen or fallen with market conditions. Because FFO and
AFFO exclude depreciation and amortization related to real estate
assets, gains and losses from real property dispositions and
impairment losses on real estate assets, FFO and AFFO provide
performance measures that, when compared year over year, reflect
the effect to operations from trends in occupancy, guestroom rates,
operating costs, development activities and interest costs,
providing perspective not immediately apparent from net income. Our
computation of FFO differs slightly from the computation of
Nareit-defined FFO related to the reporting of corporate
depreciation and amortization expense. Our computation of FFO may
also differ from the methodology for calculating FFO used by other
equity REITs and, accordingly, may not be comparable to such other
REITs. FFO and AFFO should not be considered as an alternative to
net income (loss) (computed in accordance with GAAP) as an
indicator of our liquidity, nor is it indicative of funds available
to fund our cash needs, including our ability to pay dividends or
make distributions. Where indicated in this release, FFO is based
on our computation of FFO and not the computation of Nareit-defined
FFO unless otherwise noted.
EBITDA, EBITDAre, Adjusted EBITDAre, and Hotel
EBITDA
In September 2017, Nareit proposed
a standardized performance measure, called EBITDAre, which is based
on EBITDA and is expected to provide additional relevant
information about REITs as real estate companies in support of
growing interest among generalist investors. The conclusion was
reached that, while dedicated REIT investors have long been
accustomed to utilizing the industry's supplemental measures such
as FFO and net operating income ("NOI") to evaluate the investment
quality of REITs as real estate companies, it would be helpful to
generalist investors for REITs as real estate companies to also
present EBITDAre as a more widely known and understood supplemental
measure of performance. EBITDAre is intended to be a supplemental
non-GAAP performance measure that is independent of a company's
capital structure and will provide a uniform basis for one
measurement of the enterprise value of a company compared to other
REITs.
EBITDAre, as defined by Nareit, is calculated as EBITDA,
excluding: (i) loss and gains on disposition of property and (ii)
asset impairments, if any. We believe EBITDAre is useful to an
investor in evaluating our operating performance because it
provides investors with an indication of our ability to incur and
service debt, to satisfy general operating expenses, to make
capital expenditures and to fund other cash needs or reinvest cash
into our business. We also believe it helps investors meaningfully
evaluate and compare the results of our operations from period to
period by removing the effect of our asset base (primarily
depreciation and amortization) from our operating results.
We make additional adjustments to EBITDAre when evaluating our
performance because we believe that the exclusion of certain
additional non-recurring or unusual items described below provides
useful supplemental information to investors regarding our ongoing
operating performance. We believe that the presentation of Adjusted
EBITDAre, when combined with the primary GAAP presentation of net
income, is useful to an investor in evaluating our operating
performance because it provides investors with an indication of our
ability to incur and service debt, to satisfy general operating
expenses, to make capital expenditures and to fund other cash needs
or reinvest cash into our business. We also believe it helps
investors meaningfully evaluate and compare the results of our
operations from period to period by removing the effect of our
asset base (primarily depreciation and amortization) from our
operating results.
With respect to hotel EBITDA, we believe that excluding the
effect of corporate-level expenses and non-cash items provides a
more complete understanding of the operating results over which
individual hotels and operators have direct control. We believe the
property-level results provide investors with supplemental
information on the ongoing operational performance of our hotels
and effectiveness of the third-party management companies operating
our business on a property-level basis.
We caution investors that amounts presented in accordance with
our definitions of EBITDA, EBITDAre, adjusted EBITDAre, and hotel
EBITDA may not be comparable to similar measures disclosed by other
companies, since not all companies calculate these non-GAAP
measures in the same manner. EBITDA, EBITDAre, adjusted EBITDAre,
and hotel EBITDA should not be considered as an alternative measure
of our net income (loss) or operating performance. EBITDA,
EBITDAre, adjusted EBITDAre, and hotel EBITDA may include funds
that may not be available for our discretionary use due to
functional requirements to conserve funds for capital expenditures
and property acquisitions and other commitments and uncertainties.
Although we believe that EBITDA, EBITDAre, adjusted EBITDAre, and
hotel EBITDA can enhance your understanding of our financial
condition and results of operations, these non-GAAP financial
measures are not necessarily a better indicator of any trend as
compared to a comparable GAAP measure such as net income (loss).
Above, we include a quantitative reconciliation of EBITDA,
EBITDAre, adjusted EBITDAre and hotel EBITDA to the most directly
comparable GAAP financial performance measure, which is net income
(loss) and operating income (loss).
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SOURCE Summit Hotel Properties, Inc.
