Completed Refinancing of $400 Million NCI Term Loan at Accretive Pricing to Further Strengthen Balance Sheet
AUSTIN, Texas, Nov. 4, 2025 /PRNewswire/ -- Summit Hotel Properties, Inc. (NYSE:INN) (the "Company"), today announced results for the three and nine months ended September 30, 2025.
"Operating fundamentals in the third quarter remained relatively stable compared to the trends we observed in the second quarter, as reduced government demand and slower international inbound travel continued to pressure average daily rates. Despite this challenging backdrop, we continued to grow market share, with our RevPAR index increasing 140 basis points to ~116% in the third quarter. Our disciplined approach to cost management also resulted in pro forma operating expenses increasing less than 2% during the quarter and just over 1.5% year-to-date. Encouragingly, our outlook for the remainder of the year reflects expectations for sequential improvement in operating trends in the fourth quarter, and our longer-term outlook for better operating fundamentals is positive as the industry will benefit from a lack of new supply growth," said Jonathan P. Stanner, President and Chief Executive Officer.
"We also continued to strengthen our balance sheet through the sale of two hotels for gross proceeds of $39.0 million subsequent to quarter end. The combined sales price reflects a blended trailing twelve-month net operating income capitalization rate of 4.3%. These transactions extend our successful capital recycling strategy, as we have sold 12 hotels since 2023, generating approximately $187 million of gross proceeds at a blended capitalization rate of 4.5%, inclusive of foregone capital expenditures. The strength of our balance sheet, which effectively has no debt maturities until 2028, together with our high-quality portfolio of well-located hotels, positions the Company favorably for long-term growth," continued Mr. Stanner.
Third Quarter 2025 Summary
Net Loss: Net loss attributable to common stockholders was $11.3 million, or $0.11 per diluted share, compared to net loss of $4.3 million, or $0.04 per diluted share, for the third quarter of 2024.
Same Store RevPAR: Same store RevPAR decreased 3.7 percent to $115.77 compared to the third quarter of 2024. Same store ADR decreased 3.4 percent to $157.62, and same store occupancy decreased 0.3 percent to 73.5 percent.
Pro forma RevPAR: Pro forma RevPAR decreased 4.2 percent to $116.57 compared to the third quarter of 2024. Pro forma ADR decreased 3.6 percent to $158.25 compared to the same period in 2024, and pro forma occupancy decreased 0.5 percent to 73.7 percent.
Same Store Hotel EBITDA(1): Same store hotel EBITDA decreased to $52.0 million from $59.6 million in the same period in 2024. Same store hotel EBITDA margin contracted approximately 356 basis points to 30.3 percent.
Pro Forma Hotel EBITDA(1): Pro forma hotel EBITDA decreased to $54.1 million from $62.2 million in the same period in 2024. Pro forma hotel EBITDA margin contracted approximately 351 basis points to 30.6 percent.
Adjusted EBITDAre(1): Adjusted EBITDAre decreased to $39.3 million from $45.3 million in the third quarter of 2024.
Adjusted FFO(1): Adjusted FFO decreased to $21.3 million, or $0.17 per diluted share, compared to $27.6 million, or $0.22 per diluted share, in the third quarter of 2024.
Year-to-Date 2025 Summary
Net Loss: Net loss attributable to common stockholders was $17.6 million, or $0.17 per diluted share, compared to net income of $24.5 million, or $0.21 per diluted share, in the same period of 2024.
Same Store RevPAR: Same store RevPAR decreased 2.0 percent to $123.32 compared to the same period of 2024. Same store ADR decreased 2.0 percent to $165.46, and same store occupancy remained unchanged at 74.5 percent.
Pro forma RevPAR: Pro forma RevPAR decreased 2.4 percent to $123.42 compared to the same period of 2024. Pro forma ADR decreased 2.1 percent to $165.56, and pro forma occupancy decreased 0.3 percent to 74.5 percent.
Same Store Hotel EBITDA(1): Same store hotel EBITDA decreased to $183.0 million from $198.4 million, and same store hotel EBITDA margin contracted 229 basis points to 33.9 percent.
Pro Forma Hotel EBITDA(1): Pro forma hotel EBITDA decreased to $188.1 million from $204.3 million, and pro forma hotel EBITDA margin contracted 221 basis points to 33.9 percent.
Adjusted EBITDAre(1): Adjusted EBITDAre decreased to $135.2 million from $150.1 million in the same period of 2024.
Adjusted FFO(1): Adjusted FFO decreased to $81.3 million, or $0.66 per diluted share, compared to $94.0 million, or $0.76 per diluted share, in the same period of 2024.
The Company's results for the three and nine months ended September 30, 2025 and 2024 are as follows (in thousands, except per share amounts and metrics):
For the Three MonthsEnded September 30,
For the Nine MonthsEnded September 30,
2025
2024
2025
2024
Net (loss) income attributable to common stockholders
$ (11,301)
$ (4,272)
$ (17,597)
$ 24,461
Net (loss) income per diluted share
$ (0.11)
$ (0.04)
$ (0.17)
$ 0.21
Total revenues
$ 177,117
$ 176,807
$ 554,512
$ 558,852
EBITDAre (1)
$ 46,166
$ 53,745
$ 165,665
$ 184,699
Adjusted EBITDAre (1)
$ 39,263
$ 45,340
$ 135,189
$ 150,061
FFO (1)
$ 16,289
$ 23,135
$ 66,371
$ 83,557
Adjusted FFO (1)
$ 21,253
$ 27,610
$ 81,319
$ 93,976
FFO per diluted share and unit (1)
$ 0.13
$ 0.19
$ 0.54
$ 0.67
Adjusted FFO per diluted share and unit (1)
$ 0.17
$ 0.22
$ 0.66
$ 0.76
Pro Forma (2)
RevPAR
$ 116.57
$ 121.62
$ 123.42
$ 126.45
RevPAR Growth
(4.2) %
(2.4) %
Hotel EBITDA
$ 54,118
$ 62,180
$ 188,144
$ 204,344
Hotel EBITDA Margin
30.6 %
34.1 %
33.9 %
36.1 %
Hotel EBITDA Margin Change
(351) bps
(221) bps
Same Store (3)
RevPAR
$ 115.77
$ 120.23
$ 123.32
$ 125.82
RevPAR Growth
(3.7) %
(2.0) %
Hotel EBITDA
$ 51,993
$ 59,615
$ 182,980
$ 198,436
Hotel EBITDA Margin
30.3 %
33.9 %
33.9 %
36.2 %
Hotel EBITDA Margin Change
(356) bps
(229) bps
(1)
See tables later in this press release for a discussion and reconciliation of net (loss) income 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 September 30, 2025, as if each hotel had been owned by the Company since January 1, 2024 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, 2024, 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 95 hotels owned as of January 1, 2024 and at all times during the three and nine months ended September 30, 2025, and 2024.
Transaction Activity
In October 2025, the Company completed the sale of two hotels for a combined sales price of $39.0 million, including the Courtyard Kansas City Country Club Plaza for $19.0 million and the Courtyard Amarillo Downtown, which was owned in the Company's joint venture with GIC, for $20.0 million. The aggregate sales price for the transaction represented a blended 4.3 percent capitalization rate based on the estimated net operating income for the trailing twelve months ended September 2025 and after consideration of approximately $10.2 million of foregone near-term required capital expenditures. Net proceeds from the transaction of $24.0 million (pro-rata), which will generate a net gain on sale of approximately $6.7 million, were used to repay debt, enhance liquidity and for other general corporate purposes. The combined RevPAR for the sold hotels was $89 which is a nearly 27% discount to the current pro forma portfolio.
Since 2023, the Company and its affiliates have sold 12 hotels for a combined sales price of $187.3 million at a blended capitalization rate of approximately 4.5%, inclusive of an estimated $57.4 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 a nearly 30% discount to the current pro forma portfolio.
Sold Hotels
Keys
Date
Price (1)
Forgone
Capex (1)(2)
RevPAR (3)
T-12 NOI Cap Rate Including Capex
Summit Ownership Percentage
Courtyard - Kansas City Country Club Plaza
123
Oct 2025
$ 19,000
$ 5,500
$ 81
1.4 %
100 %
Courtyard - Amarillo Downtown
107
Oct 2025
20,000
4,700
97
7.3 %
51 %
Total
230
$ 39,000
$ 10,200
$ 89
4.3 %
(4)
(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)
Blended
Capital Markets Activity
NCI Term Loan RefinancingIn July 2025, the Company, together with its joint venture partner, GIC, closed a $400.0 million senior unsecured term loan (the "2025 GIC Joint Venture Term Loan") to refinance the previous GIC joint venture term loan that was scheduled to mature in January 2026.
The 2025 GIC Joint Venture Term Loan provides for an interest rate equal to SOFR plus 235 basis points, which represents a 50 basis point reduction from the previous loan, and has a fully extended maturity date of July 2030, subject to extensions and certain other conditions.
GIC Joint Venture Interest Rate SwapsIn August 2025, the GIC joint venture entered into two $150 million forward starting interest rate swaps to fix one-month term SOFR until January 2028. The interest rate swaps have an effective date of January 13, 2026 and a termination date of January 13, 2028. The two $150 million interest rate swaps with an average SOFR rate of 3.26% will replace $300 million of existing GIC Joint Venture interest rate swaps with an average SOFR rate of 3.49% scheduled to mature in January 2026.
Balance Sheet Summary
On a pro rata basis as of September 30, 2025, the Company had the following outstanding indebtedness and liquidity available:
Outstanding debt of $1.1 billion with a weighted average interest rate of 4.52 percent. After giving effect to interest rate derivative agreements, $826.9 million, or 75 percent, of our outstanding debt had a fixed interest rate, and $273.5 million, or 25 percent, had a variable interest rate.
Unrestricted cash and cash equivalents of $33.8 million.
Total liquidity of over $280 million, including unrestricted cash and cash equivalents and revolving credit facility availability.
Common and Preferred Dividend Declaration
On October 31, 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 6.1 percent, based on the closing price of shares of the common stock on November 3, 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 November 28, 2025 to holders of record as of November 14, 2025.
2025 Outlook
While we remain confident in the long-term fundamentals in our portfolio, near-term results are being negatively affected by increased price sensitivity and continued macroeconomic volatility. We currently expect fourth quarter 2025 RevPAR growth to range from -2.0% to -2.5% as operating trends reflect sequential improvement from the second and third quarters of this year. We expect capital expenditures for full year 2025 of $60 million to $65 million on a pro rata basis.
Third Quarter 2025 Earnings Conference Call
The Company will conduct its quarterly conference call on November 5, 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 February 2, 2026.
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 November 4, 2025, the Company's portfolio consisted of 95 assets, 52 of which are wholly owned, with a total of 14,347 guestrooms located in 24 states.
For additional information, please visit the Company's website, www.shpreit.com, and follow on X at
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)
September 30, 2025
December 31, 2024
(Unaudited)
ASSETS
Investments in lodging property, net
$ 2,677,174
$ 2,746,765
Investment in lodging property under development
—
7,617
Assets held for sale, net
31,548
1,225
Cash and cash equivalents
41,135
40,637
Restricted cash
6,270
7,721
Right-of-use assets, net
32,482
33,309
Trade receivables, net
19,022
18,625
Prepaid expenses and other
14,319
9,580
Deferred charges, net
10,335
6,460
Other assets
16,195
24,291
Total assets
$ 2,848,480
$ 2,896,230
LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY
Liabilities:
Debt, net of debt issuance costs
$ 1,421,777
$ 1,396,710
Lease liabilities, net
24,421
24,871
Accounts payable
9,859
7,450
Accrued expenses and other
92,907
82,153
Total liabilities
1,548,964
1,511,184
Redeemable non-controlling interests
50,219
50,219
Total stockholders' equity
875,794
909,545
Non-controlling interests
373,503
425,282
Total equity
1,249,297
1,334,827
Total liabilities, redeemable non-controlling interests and equity
$ 2,848,480
$ 2,896,230
Summit Hotel Properties, Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
(Unaudited)
For the Three MonthsEnded September 30,
For the Nine MonthsEnded September 30,
2025
2024
2025
2024
Revenues:
Room
$ 156,323
$ 157,408
$ 490,653
$ 497,864
Food and beverage
10,017
9,272
32,202
30,174
Other
10,777
10,127
31,657
30,814
Total revenues
177,117
176,807
554,512
558,852
Expenses:
Room
38,958
37,286
114,256
111,303
Food and beverage
8,217
7,289
24,596
23,130
Other lodging property operating expenses
58,575
56,330
174,440
170,061
Property taxes, insurance and other
14,106
13,250
41,123
40,822
Management fees
3,142
2,728
12,048
12,059
Depreciation and amortization
37,634
36,708
112,123
109,965
Corporate general and administrative
7,845
7,473
24,696
24,488
Transaction costs
—
10
—
10
Total expenses
168,477
161,074
