#United States #Austin #Summit Hotel #RevPAR #$INN

Summary of the Second Quarter of 2026

Summit Hotel Properties, Inc. (NYSE: INN) has reported its financial results for the second quarter ended June 30, 2026, revealing a robust performance this quarter. The company reported an operating income of $28.9 million, an impressive 27.3% increase compared to the same period last year. This significant growth was accompanied by a 7.7% rise in Adjusted EBITDAre, reaching $54.8 million.

Key Metrics

The highlights of the second quarter include:

• - Pro forma RevPAR (Revenue per Available Room) increased by 5.0%, reaching $136.06, primarily driven by a 7.1% growth in average daily rates (ADR) to $178.42.
• - Despite these positive trends, the occupancy rate saw a slight decrease of 1.9%, settling at 76.3%.

Operational Excellence and Portfolio Strength

Jonathan Stanner, President and CEO, expressed optimism regarding these results, stating that operational fundamentals saw an acceleration that exceeded expectations this quarter as demand across market segments remained robust. Management effectively leveraged a favorable market environment, resulting in a 7.8% year-over-year increase in hotel EBITDA.

Balance Sheet Strengthening
The balance sheet also saw enhancements, with the successful refinancing of a $650 million senior credit facility and the strategic sale of two hotels that contributed positively to reducing leverage and paving the way for future growth.

Year-to-Date Performance

In the year-to-date comparison, Summit reported a net loss of $6.6 million, or $0.06 per diluted share. In contrast, for the same period in 2025, the net loss was $6.3 million. Notable metrics include:

• - Pro forma RevPAR growth of 2.7% year-over-year to $131.34.
• - Adjusted FFO (Funds from Operations) also experienced an increase, rolling over into $60.4 million or $0.50 per diluted share.

Strategic Transactions

The company executed key transactions to enhance its operational capacity. In July, Summit completed the sale of two hotels in Arlington, Texas, generating $19 million in revenue while reducing its overall debt portfolio. Summing up all transactions since 2023, Summit has divested 15 hotels for approximately $219 million, indicating a strategic recycle of capital aimed to strengthen future growth potential.

Capital Markets Activity

On June 29, 2026, the refinance of the senior credit facility marked a significant milestone for Summit. This newly structured facility is projected to save on interest expenses, with pricing improvements leading to enhanced cash flow. The company’s financial agility is evident with no debt maturities pending until 2028, combined with significant liquidity of over $29 million in cash reserves.

Dividend Declarations

In a move reflecting the company’s financial health, on July 28, 2026, Summit declared its quarterly cash dividend of $0.08 per share. The annualized dividend yield stands around 4.6% based on the closing share price, further positioning the company favorably among investors.

Looking Forward

As the company projects growth for the rest of 2026, it has revised its guidance upwards based on thrived operational results and robust trends observed in the hotel industry metrics. With a continued commitment to capital efficiency and organic growth, Summit Hotel Properties is poised to navigate the evolving market landscape successfully.

• ---

In conclusion, the second quarter of 2026 reflected a healthy uptick in financial performance and operational metrics for Summit Hotel Properties, underscoring its potential for continued growth and profitability in an increasingly competitive market.