#United States #Austin #Summit Hotel #Hampton Inn #Hilton Garden Inn

Summit Hotel Properties Reports Strong Financial Performance

Summit Hotel Properties, Inc. (NYSE: INN) has shared promising results for the fourth quarter and full year of 2024, indicating significant growth and strategic advancements within its portfolio. The company's financial performance highlights a robust recovery and proactive management strategies in a challenging economic environment.

In the fourth quarter of 2024, Summit reported a notable rise in net income attributable to common stockholders, achieving $0.7 million or $0.01 per diluted share. This marked a substantial recovery from a net loss of $16.6 million in the same quarter of the previous year. Additionally, the Pro forma Revenue Per Available Room (RevPAR) advanced by 1.4% to $117.21, coupled with a 0.5% uptick in occupancy rates, demonstrating effective operational strategies.

For the entire year, the firm recorded a net income of $25.1 million, shifting from a net loss of $28 million in 2023. The full-year Pro forma RevPAR improved by 1.8% to $124.13, signifying the company’s adaptive growth even amidst fluctuating market conditions.

CEO Jonathan P. Stanner attributed this success to thorough expense management and the ongoing success of the company's capital recycling program. This optimization of resources led to nearly 6% growth in the Adjusted Funds From Operations (AFFO), reaching $119.2 million or $0.96 per diluted share for the year. Moreover, the company's strategic asset transactions included over $200 million in significant acquisitions, showcasing a proactive stance on value creation and investment in high-quality assets.

Among significant transactions, the acquisition of the Hampton Inn Boston-Logan Airport and the Hilton Garden Inn Tysons Corner for $96 million in December was particularly noteworthy. These investments, backed by nearly $150 million from prior asset sales, exemplify Summit’s strategy to enhance its portfolio by focusing on premium-branded hotels in high-demand urban markets.

Stanner expressed optimism for a positive outlook in 2025, supported by expected growth in urban markets and solid demand trends, further reinforcing the company’s strategic direction. He noted that with operating pressures beginning to normalize, Summit is comfortable with its ability to handle costs and maintain profitability.

For the fourth quarter, key performance metrics included:

• - Net Income: $680,000 (up from a loss of $16.57 million in Q4 2023)
• - Total Revenues: $172.93 million
• - Pro forma Hotel EBITDA: $60.4 million (down from $62.1 million)

The overall performance for the year spanned significant revenue and operational achievements:

• - Total Revenues: $731.78 million
• - Adjusted EBITDAre: $192.2 million (up 1.1% from 2023)
• - Same Store RevPAR: Up by 1.7% to $123.34

In terms of future projections, Summit anticipates continued growth, with expectations of a RevPAR growth between 1% and 3%. The company also plans strategic capital expenditures amounting to around $65 million to $85 million for the upcoming year, focusing on enhancing their property portfolio and utilities.

In conjunction with their impressive financial results, Summit also declared a quarterly cash dividend of $0.08 per common share, reflecting a commitment to returning value to shareholders. This highlights the company’s stability as it continues to navigate the evolving landscape of the hospitality industry.

In summary, Summit Hotel Properties has solidified its footing through effective expense management, strategic asset transactions, and a sustained focus on quality within its portfolio. With a forward-looking strategy, the company is set to embrace growth opportunities in 2025 and beyond.