First Quarter 2023 Pro Forma RevPAR Grows 19.3% - Operating Income Increase Drives Adjusted EBITDAre Growth of 35% to $44.4 Million - Common Dividend Increased 50% to an Annualized $0.24 Per Share
Summit Hotel Properties, Inc. (NYSE: INN), yesterday announced results for the first quarter ended March 31, 2023.
"We are pleased with our first quarter operating results as average daily rate in our pro forma portfolio reached the highest level in the Company's history, increasing 11% year-over-year and driving 19% RevPAR growth for the quarter. Our operating results were particularly strong in urban markets, where RevPAR increased 25% from the prior year and the recently acquired NewcrestImage hotels where RevPAR grew 22% year-over-year and exceeded 2019 levels for the first time in our ownership history. The industry's recovery is increasingly being driven by midweek, group and business-oriented demand which positions our high-quality portfolio – of which approximately half is located in urban markets – particularly well for this new phase of growth," said Jonathan P. Stanner, the Company's President and Chief Executive Officer.
"Given the continued recovery in operating fundamentals and strength of our balance sheet, our Board of Directors has authorized an increase of our common dividend by 50%, to $0.24 per share on an annualized basis. This increase reflects the confidence we have in the ongoing strength and durability of our business, supported by continued positive forward booking trends and pace data, while still maintaining a prudent payout ratio," continued Mr. Stanner.
First Quarter 2023 Summary
- Net Loss: Net loss attributable to common stockholders narrowed to $5.2 million, or $0.05 per diluted share, compared to a net loss of $12.4 million, or $0.12 per diluted share, for the first quarter of 2022.
- Pro forma RevPAR: Pro forma RevPAR increased 19.3 percent to $118.18 compared to the first quarter of 2022. Pro forma ADR increased 11.2 percent to $171.63 compared to the same period in 2022, and pro forma occupancy increased 7.3 percent to 68.9 percent.
- Same Store RevPAR: Same Store RevPAR increased 19.3 percent to $116.28 compared to the first quarter of 2022. Same store ADR increased 11.2 percent to $169.33 compared to the same period in 2022, and same store occupancy increased 7.3 percent to 68.7 percent.
- Pro Forma Hotel EBITDA (1): Pro forma hotel EBITDA increased 26.8 percent to $62.9 million from $49.6 million in the same period in 2022. Pro forma hotel EBITDA margin expanded to 34.5 percent from 33.0 percent in the same period of 2022.
- Same Store Hotel EBITDA (1): Same store hotel EBITDA increased 25.8 percent to $59.0 million from $46.8 million in the same period in 2022. Same store hotel EBITDA margin expanded to 34.3 percent from 32.5 percent in the same period of 2022.
- Adjusted EBITDAre (1): Adjusted EBITDAre increased 35.0 percent to $44.4 million from $32.9 million in the first quarter of 2022.
- Adjusted FFO (1): Adjusted FFO was $26.3 million, or $0.22 per diluted share, compared to $20.1 million, or $0.17 per diluted share, in the first quarter of 2022.
The Company's results for the three months ended March 31, 2023, are as follows (in thousands, except per share amounts):
| For the Three Months Ended March 31, | |||
| 2023 | 2022 | ||
| Net loss attributable to common stockholders | $ (5,228) | $ (12,379) | |
| Net loss per diluted share | $ (0.05) | $ (0.12) | |
| Total revenues | $ 182,383 | $ 141,869 | |
| EBITDAre (1) | $ 55,340 | $ 38,738 | |
| Adjusted EBITDAre (1) | $ 44,428 | $ 32,921 | |
| FFO (1) | $ 22,076 | $ 14,493 | |
| Adjusted FFO (1) | $ 26,261 | $ 20,141 | |
| FFO per diluted share and unit (1) | $ 0.18 | $ 0.12 | |
| Adjusted FFO per diluted share and unit (1) | $ 0.22 | $ 0.17 | |
| Pro Forma (2) | |||
| RevPAR | $ 118.18 | $ 99.08 | |
| RevPAR Growth | 19.3 % | ||
| Hotel EBITDA | $ 62,865 | $ 49,573 | |
| Hotel EBITDA margin | 34.5 % | 33.0 % | |
| Hotel EBITDA margin growth | 147 bps | ||
| Same Store (3) | |||
| RevPAR | $ 116.28 | $ 97.46 | |
| RevPAR Growth | 19.3 % | ||
| Hotel EBITDA | $ 58,955 | $ 46,848 | |
| Hotel EBITDA margin | 34.3 % | 32.5 % | |
| Hotel EBITDA margin growth | 173 bps | ||
| (1) | See tables later in this press release for a discussion and reconciliation of net 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 (loss) 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 103 hotels owned as of March 31, 2023, as if each hotel had been owned by the Company since January 1, 2022, and remained open for the entirety of the measurement period. As a result, all pro forma information includes operating and financial results for hotels acquired since January 1, 2022, 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 99 hotels owned as of March 31, 2023, and at all times during the three months ended March 31, 2023, and 2022. |
Pending Transaction Activity
As previously announced, the Company remains under contract to dispose of an aggregate of six hotels totaling 750 guestrooms and a vacant land parcel. The aggregate gross sales price for the pending disposition activity is $79.9 million and the hotel transactions are expected to close during the second quarter of 2023 with the vacant land sale closing expected in the second half of 2023. The sales price for all transactions represents a 3.9% capitalization rate based on net operating income after a 4% FF&E reserve for the year ended December 31, 2022. The Company expects to forego between $33 million and $38 million of future near-term required capital expenditures at the six hotels as a result of the sales which would reduce the all-in capitalization rate to approximately 2.6%. All of the pending dispositions are wholly owned assets and net proceeds will be used to reduce the Company's overall balance sheet net leverage by repaying outstanding debt and increasing liquidity.
The four-hotel portfolio totaling 467 guestrooms is under contract for a gross sales price of $28.1 million. The hotels for sale are:
- 151-guestroom – Hyatt Place Chicago/Lombard/Oak Brook
- 126-guestroom – Hyatt Place Chicago/Hoffman Estates
- 97-guestroom – Hilton Garden Inn Minneapolis/Eden Prairie
- 93-guestroom – Holiday Inn Express & Suites Eden Prairie – Minnetonka
The two-hotel portfolio totaling 283 guestrooms is under contract for a gross sales price of $50.5 million. The hotels for sale are:
- 160-guestroom – Residence Atlanta Midtown/Peachtree at 17th
- 123-guestroom – Courtyard Kansas City Country Club Plaza
The Company makes no assurances that it will be able to complete the sale transactions based on the current contractual terms or at all.
Capital Markets & Balance Sheet
On March 24, 2023, subsidiaries of the GIC joint venture entered into two $100 million interest rate swaps to fix one-month term SOFR at 3.354% until January 2026. The interest rate swaps have an effective date of July 1, 2023, and will increase the Company's fixed rate indebtedness to approximately 73% of total pro rata debt outstanding and approximately 79% when included the Company's fixed coupon preferred securities.
On March 31, 2023, the Company exercised the first of four available maturity date extension options on its $400 million senior revolving credit facility. The new maturity date of the revolving credit facility is September 30, 2023, and the Company has three remaining six-month extension options at the Company's sole discretion available that result in a fully extended maturity date of March 31, 2025.
As of March 31, 2023, inclusive of its pro rata share of the GIC Joint Venture credit facility, the Company had the following:
- Outstanding debt of $1.2 billion with a weighted average interest rate of 4.81 percent. After giving effect to interest rate derivative agreements, $748.4 million, or 64 percent, of our outstanding debt had an average fixed interest rate, and $416.0 million, or 36 percent, had a variable interest rate.
- Unrestricted cash and cash equivalents of $45.9 million.
- Revolving credit facility availability of $366.5 million on its $400.0 million credit facility.
- Total liquidity of $412.4 million, including unrestricted cash and cash equivalents and revolving credit facility availability.
Common Dividend Increased 50%
On April 27, 2023, the Company declared an increase to its quarterly cash dividend rate to $0.06 per share on its common stock and per common unit of limited partnership interest in Summit Hotel OP, LP. The quarterly dividend of $0.06 per share represents an increase of $0.02 per share, or 50%, and an annualized dividend yield of 3.9% based on the closing price of shares of the common stock on April 26, 2023.
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 May 31, 2023, to holders of record as of May 17, 2023.
2023 Outlook
The Company is reiterating its previously provided outlook for the full year 2023 based on 103 lodging assets, 61 of which were wholly owned as of May 3, 2023. There are no pending acquisitions, dispositions, or additional capital markets activities assumed in the Company's full year 2023 outlook.
| FYE 2023 Outlook | ||||
| Low | High | |||
| Pro Forma RevPAR (103 Lodging Assets) (1) | $ 117.50 | $ 123.00 | ||
| Pro Forma RevPAR Growth | 6.00 % | 11.00 % | ||
| Adjusted EBITDAre | $ 190,400 | $ 205,900 | ||
| Adjusted FFO | $ 112,100 | $ 128,100 | ||
| Adjusted FFO per Diluted Unit | $ 0.92 | $ 1.05 | ||
| Capital Expenditures, Pro Rata | $ 60,000 | $ 80,000 | ||
| (1) | All pro forma information includes operating and financial results for 103 lodging assets owned as of May 3, 2023, as if each property had been owned by the Company since January 1, 2022, and will continue to be owned through the entire year ending December 31, 2023. As a result, the pro forma information includes operating and financial results for lodging assets acquired since January 1, 2022, which may include periods prior to the Company's ownership. Pro forma and non-GAAP financial measures are unaudited. |
About Summit Hotel Properties
Summit Hotel Properties, Inc. is a publicly traded real estate investment trust focused on owning premium-branded lodging properties with efficient operating models primarily in the upscale segment of the lodging industry. As of May 3, 2023, the Company's portfolio consisted of 103 assets, 61 of which are wholly owned, with a total of 15,334 guestrooms located in 24 states.
| Summit Hotel Properties, Inc. | |||
| Condensed Consolidated Balance Sheets | |||
| (In thousands) | |||
| March 31, 2023 | December 31, 2022 | ||
| (unaudited) | |||
| ASSETS | |||
| Investments in lodging property, net | $ 2,776,947 | $ 2,792,552 | |
| Assets held for sale, net | 79,172 | 78,576 | |
| Cash and cash equivalents | 60,678 | 51,255 | |
| Restricted cash | 11,153 | 10,553 | |
| Right-of-use assets, net | 35,697 | 35,023 | |
| Trade receivables, net | 24,070 | 21,015 | |
| Prepaid expenses and other | 19,348 | 8,378 | |
| Deferred charges, net | 6,932 | 7,074 | |
| Other assets | 14,260 | 17,844 | |
| Total assets | $ 3,028,257 | $ 3,022,270 | |
| LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS, AND EQUITY | |||
| Liabilities: | |||
| Debt, net of debt issuance costs | $ 1,467,123 | $ 1,451,796 | |
| Lease liabilities, net | 26,309 | 25,484 | |
| Accounts payable | 5,460 | 5,517 | |
| Accrued expenses and other | 86,499 | 81,304 | |
| Total liabilities | 1,585,391 | 1,564,101 | |
| Redeemable non-controlling interests | 50,219 | 50,219 | |
| Total stockholders' equity | 946,219 | 959,813 | |
| Non-controlling interests | 446,428 | 448,137 | |
| Total equity | 1,392,647 | 1,407,950 | |
| Total liabilities, redeemable non-controlling interests, and equity | $ 3,028,257 | $ 3,022,270 | |
| Summit Hotel Properties, Inc. | ||||
| Condensed Consolidated Statements of Operations | ||||
| (Unaudited) | ||||
| (In thousands, except per share amounts) | ||||
| For the Three Months Ended March 31, | ||||
| 2023 | 2022 | |||
| Revenues: | ||||
| Room | $ 163,089 | $ 128,810 | ||
| Food and beverage | 10,630 | 5,662 | ||
| Other | 8,664 | 7,397 | ||
| Total revenues | 182,383 | 141,869 | ||
| Expenses: | ||||
| Room expense | 35,909 | 28,410 | ||
| Food and beverage | 7,955 | 4,114 | ||
| Other lodging property operating expenses | 56,125 | 46,277 | ||
| Property taxes, insurance and other | 14,724 | 13,138 | ||
| Management fees | 4,805 | 3,795 | ||
| Depreciation and amortization | 36,908 | 36,274 | ||
| Corporate general and administrative | 8,005 | 9,137 | ||
| Recoveries of credit losses | (250) | - | ||
| Total expenses | 164,181 | 141,145 | ||
| Operating income | 18,202 | 724 | ||
| Other income (expense): | ||||
| Interest expense | (20,909) | (13,439) | ||
| Other income, net | 265 | 1,742 | ||
| Total other expense, net | (20,644) | (11,697) | ||
| Loss from continuing operations before income taxes | (2,442) | (10,973) | ||
| Income tax benefit | 472 | 2,000 | ||
| Net loss | (1,970) | (8,973) | ||
| Loss attributable to non-controlling interests | 1,369 | 1,119 | ||
| Net loss attributable to Summit Hotel Properties, Inc. before preferred dividends and distributions | (601) | (7,854) | ||
| Distributions to and accretion of redeemable non-controlling interests | (657) | (555) | ||
| Preferred dividends | (3,970) | (3,970) | ||
| Net loss attributable to common stockholders | $ (5,228) | $ (12,379) | ||
| Loss per share: | ||||
| Basic and diluted | $ (0.05) | $ (0.12) | ||
| Weighted average common shares outstanding: | ||||
| Basic and diluted | 105,312 | 104,896 | ||
| Summit Hotel Properties, Inc. | |||
| Reconciliation of Net Loss to Non-GAAP Measures – Funds From Operations | |||
| (Unaudited) | |||
| (In thousands, except per share and unit amounts) | |||
| For the Three Months Ended March 31, | |||
| 2023 | 2022 | ||
| Net loss | $ (1,970) | $ (8,973) | |
| Preferred dividends | (3,970) | (3,970) | |
| Distributions to and accretion of redeemable non-controlling interests | (657) | (555) | |
| Loss related to non-controlling interests in consolidated joint ventures | 680 | 82 | |
| Net loss applicable to Common Stock and Common Units | $ (5,917) | $ (13,416) | |
| Real estate-related depreciation | 35,727 | 35,195 | |
| Disposition of assets, net | 48 | - | |
| Adjustments related to non-controlling interests in consolidated joint ventures | (7,782) | (7,286) | |
| FFO applicable to Common Stock and Common Units | $ 22,076 | $ 14,493 | |
| Recoveries of credit losses | (250) | - | |
| Amortization of debt issuance costs | 1,399 | 1,412 | |
| Amortization of franchise fees | 142 | 168 | |
| Amortization of intangible assets, net | 903 | 911 | |
| Equity-based compensation | 1,469 | 3,698 | |
| Debt transaction costs | 87 | - | |
| Non-cash interest income (1) | (130) | (122) | |
| Non-cash lease expense, net | 133 | 128 | |
| Casualty losses, net | 536 | 185 | |
| Change in deferred tax asset valuation allowance | 63 | - | |
| Other non-cash items, net | 711 | - | |
| Adjustments related to non-controlling interests in consolidated joint ventures | (878) | (732) | |
| AFFO applicable to Common Stock and Common Units | $ 26,261 | $ 20,141 | |
| FFO per share of Common Stock and Common Units | $ 0.18 | $ 0.12 | |
| AFFO per share of Common Stock and Common Units | $ 0.22 | $ 0.17 | |
| Weighted average diluted shares of Common Stock and Common Units for FFO and AFFO (2) | 122,010 | 118,976 | |
| (1) | Non-cash interest income relates to the amortization of the discount on certain notes receivable. The discount on these notes receivable was recorded at inception of the related loans based on the estimated value of the embedded purchase options in the notes 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 March 31, | |||
| 2023 | 2022 | ||
| Weighted average shares of Common Stock outstanding | 105,312 | 104,896 | |
| Dilutive effect of unvested restricted stock awards | 138 | 627 | |
| Dilutive effect of shares of Common Stock issuable upon conversion of convertible debt | 24,324 | 23,978 | |
| Adjusted weighted diluted shares of Common Stock | 129,774 | 129,501 | |
| Non-GAAP adjustment for dilutive effects of Common Units | 15,977 | 13,453 | |
| Non-GAAP adjustment for dilutive effects of restricted stock awards | 583 | - | |
| Non-GAAP adjustment for dilutive effect of shares of Common Stock issuable upon conversion of convertible debt | (24,324) | (23,978) | |
| Non-GAAP weighted dilutive share of Common Stock and Common Units | 122,010 | 118,976 | |
| Summit Hotel Properties, Inc. | ||||
| Reconciliation of Net Loss to Non-GAAP Measures – EBITDAre | ||||
| (Unaudited) | ||||
| (In thousands) | ||||
| For the Three Months Ended March 31, | ||||
| 2023 | 2022 | |||
| Net loss | $ (1,970) | $ (8,973) | ||
| Depreciation and amortization | 36,908 | 36,274 | ||
| Interest expense | 20,909 | 13,439 | ||
| Interest income | (83) | (2) | ||
| Income tax benefit | (472) | (2,000) | ||
| EBITDA | $ 55,292 | $ 38,738 | ||
| Disposition of assets, net | 48 | - | ||
| EBITDAre | $ 55,340 | $ 38,738 | ||
| Recoveries of credit losses | (250) | - | ||
| Amortization of key money liabilities | (136) | - | ||
| Equity-based compensation | 1,469 | 3,698 | ||
| Debt transaction costs | 87 | - | ||
| Non-cash interest income (1) | (130) | (122) | ||
| Non-cash lease expense, net | 133 | 128 | ||
| Casualty losses, net | 536 | 185 | ||
| Loss related to non-controlling interests in consolidated joint ventures | 680 | 82 | ||
| Other non-cash items, net | 711 | - | ||
| Adjustments related to non-controlling interests in consolidated joint ventures | (14,012) | (9,788) | ||
| Adjusted EBITDAre | $ 44,428 | $ 32,921 | ||
| (1) | Non-cash interest income relates to the amortization of the discount on certain notes receivable. The discount on these notes receivable was recorded at inception of the related loans based on the estimated value of the embedded purchase options in the notes receivable. |
| Summit Hotel Properties, Inc. | ||||
| Pro Forma Hotel Operating Data | ||||
| (Unaudited) | ||||
| (In thousands) | ||||
| For the Three Months Ended March 31, | ||||
| Pro Forma Operating Data (1,2) | 2023 | 2022 | ||
| Pro forma room revenue | $ 163,089 | $ 135,280 | ||
| Pro forma other hotel operating revenue | 19,294 | 14,969 | ||
| Pro forma total revenues | 182,383 | 150,249 | ||
| Pro forma total hotel operating expenses | 119,518 | 100,676 | ||
| Pro forma hotel EBITDA | $ 62,865 | $ 49,573 | ||
| Pro forma hotel EBITDA Margin | 34.5 % | 33.0 % | ||
| Reconciliations of Non-GAAP financial measures to comparable GAAP financial measures | ||||
| Revenue: | ||||
| Total revenues | $ 182,383 | $ 141,869 | ||
| Total revenues - acquisitions (1) | - | 9,514 | ||
| Total revenues - dispositions (2) | - | (1,134) | ||
| Pro forma total revenues | 182,383 | 150,249 | ||
| Hotel Operating Expenses: | ||||
| Total hotel operating expenses | 119,518 | 95,734 | ||
| Hotel operating expenses - acquisitions (1) | - | 6,010 | ||
| Hotel operating expenses - dispositions (2) | - | (1,068) | ||
| Pro forma hotel operating expenses | 119,518 | 100,676 | ||
| Hotel EBITDA: | ||||
| Operating income | 18,202 | 724 | ||
| Recoveries of credit losses | (250) | - | ||
| Corporate general and administrative | 8,005 | 9,137 | ||
| Depreciation and amortization | 36,908 | 36,274 | ||
| Hotel EBITDA | 62,865 | 46,135 | ||
| Hotel EBITDA - acquisitions (1) | (3,910) | 779 | ||
| Hotel EBITDA - dispositions (2) | - | (66) | ||
| Same store hotel EBITDA | $ 58,955 | $ 46,848 | ||
| Hotel EBITDA - acquisitions (3) | 3,910 | 2,725 | ||
| Pro forma hotel EBITDA | $ 62,865 | $ 49,573 | ||
| (1) | For any hotels acquired by the Company after January 1, 2022 (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 March 31, 2023 (the "Acquisition Period") in determining same-store hotel EBITDA. |
| (2) | For hotels sold by the Company between January 1, 2022, and March 31, 2023 (the "Disposed Hotels"), the Company has excluded the financial results of each of the Disposed Hotels for the period beginning on January 1, 2022, and ending on the date the Disposed Hotels were sold by the Company (the "Disposition Period") in determining same-store hotel EBITDA. |
| (3) | Unaudited pro forma information includes operating results for 103 hotels owned as of March 31, 2023, as if all such hotels had been owned by the Company since January 1, 2022. For hotels acquired by the Company after January 1, 2022 (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, 2022, to March 31, 2023. 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. 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. |
| Summit Hotel Properties, Inc. | |||||||||||||||||||||||||||||
| Pro Forma Hotel Operating Data | |||||||||||||||||||||||||||||
| (Unaudited) | |||||||||||||||||||||||||||||
| (In thousands, except operating statistics) | |||||||||||||||||||||||||||||
| 2022 | 2023 | Trailing Twelve | |||||||||||||||||||||||||||
| Pro Forma Operating Data (1,2) | Q2 | Q3 | Q4 | Q1 | Months Ended March 31, 2023 | ||||||||||||||||||||||||
| Pro forma room revenue | $ 169,513 | $ 160,478 | $ 153,736 | $ 163,089 | $ 646,816 | ||||||||||||||||||||||||
| Pro forma other hotel operating revenue | 18,280 | 18,118 | 18,703 | 19,294 | 74,395 | ||||||||||||||||||||||||
| Pro forma total revenues | 187,793 | 178,596 | 172,439 | 182,383 | 721,211 | ||||||||||||||||||||||||
| Pro forma total hotel operating expenses | 116,894 | 117,258 | 110,319 | 119,518 | 463,989 | ||||||||||||||||||||||||
| Pro forma hotel EBITDA | $ 70,899 | $ 61,338 | $ 62,120 | $ 62,865 | $ 257,222 | ||||||||||||||||||||||||
| Pro forma hotel EBITDA Margin | 37.8 % | 34.3 % | 36.0 % | 34.5 % | 35.7 % | ||||||||||||||||||||||||
| Pro Forma Statistics (1,2) | |||||||||||||||||||||||||||||
| Rooms sold | 1,034,603 | 1,011,675 | 963,342 | 950,214 | 3,959,834 | ||||||||||||||||||||||||
| Rooms available | 1,395,182 | 1,410,544 | 1,410,583 | 1,380,060 | 5,596,369 | ||||||||||||||||||||||||
| Occupancy | 74.2 % | 71.7 % | 68.3 % | 68.9 % | 70.8 % | ||||||||||||||||||||||||
| ADR | $ 163.84 | $ 158.63 | $ 159.59 | $ 171.63 | $ 163.34 | ||||||||||||||||||||||||
| RevPAR | $ 121.50 | $ 113.77 | $ 108.99 | $ 118.18 | $ 115.58 | ||||||||||||||||||||||||
| Actual Statistics | |||||||||||||||||||||||||||||
| Rooms sold | 1,025,340 | 1,010,996 | 963,151 | 950,214 | 3,949,701 | ||||||||||||||||||||||||
| Rooms available | 1,382,673 | 1,409,716 | 1,410,358 | 1,380,060 | 5,582,807 | ||||||||||||||||||||||||
| Occupancy | 74.2 % | 71.7 % | 68.3 % | 68.9 % | 70.7 % | ||||||||||||||||||||||||
| ADR | $ 162.68 | $ 158.39 | $ 159.50 | $ 171.63 | $ 162.96 | ||||||||||||||||||||||||
| RevPAR | $ 120.64 | $ 113.59 | $ 108.92 | $ 118.18 | $ 115.29 | ||||||||||||||||||||||||
| Reconciliations of Non-GAAP financial measures to comparable GAAP financial measures | |||||||||||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||||||||
| Total revenues | $ 183,248 | $ 178,252 | $ 172,326 | $ 182,383 | $ 716,209 | ||||||||||||||||||||||||
| Total revenues from acquisitions (1) | 5,253 | 344 | 113 | - | 5,710 | ||||||||||||||||||||||||
| Total revenues from dispositions (2) | (708) | - | - | - | (708) | ||||||||||||||||||||||||
| Pro forma total revenues | 187,793 | 178,596 | 172,439 | 182,383 | 721,211 | ||||||||||||||||||||||||
| Hotel Operating Expenses: | |||||||||||||||||||||||||||||
| Total hotel operating expenses | 114,074 | 117,149 | 110,277 | 119,518 | 461,018 | ||||||||||||||||||||||||
| Total hotel operating expenses from acquisitions (1) | 3,337 | 109 | 42 | - | 3,488 | ||||||||||||||||||||||||
| Total hotel operating expenses from dispositions (2) | (517) | - | - | - | (517) | ||||||||||||||||||||||||
| Pro forma total hotel operating expenses | 116,894 | 117,258 | 110,319 | 119,518 | 463,989 | ||||||||||||||||||||||||
| Hotel EBITDA: | |||||||||||||||||||||||||||||
| Operating income | 43,095 | 17,230 | 6,733 | 18,202 | 85,260 | ||||||||||||||||||||||||
| (Gain) loss on disposal of assets, net | (20,484) | 5 | 164 | - | (20,315) | ||||||||||||||||||||||||
| Loss on write down of assets | - | - | 10,420 | - | 10,420 | ||||||||||||||||||||||||
| Recoveries of credit losses | (250) | (850) | - | (250) | (1,350) | ||||||||||||||||||||||||
| Transaction costs | 681 | 56 | 12 | - | 749 | ||||||||||||||||||||||||
| Corporate general and administrative | 8,074 | 6,532 | 7,022 | 8,005 | 29,633 | ||||||||||||||||||||||||
| Depreciation and amortization | 38,058 | 38,130 | 37,698 | 36,908 | 150,794 | ||||||||||||||||||||||||
| Hotel EBITDA | 69,174 | 61,103 | 62,049 | 62,865 | 255,191 | ||||||||||||||||||||||||
| Hotel EBITDA from acquisitions (1) | (575) | (205) | (2,900) | (3,910) | (7,590) | ||||||||||||||||||||||||
| Hotel EBITDA from dispositions (2) | (191) | - | - | - | (191) | ||||||||||||||||||||||||
| Same store hotel EBITDA | $ 68,408 | $ 60,898 | $ 59,149 | $ 58,955 | $ 247,410 | ||||||||||||||||||||||||
| Hotel EBITDA from acquisitions (3) | 2,491 | 440 | 2,971 | 3,910 | 9,812 | ||||||||||||||||||||||||
| Pro forma hotel EBITDA | $ 70,899 | $ 61,338 | $ 62,120 | $ 62,865 | $ 257,222 | ||||||||||||||||||||||||
| (1) | For any hotels acquired by the Company after April 1, 2022 (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 March 31, 2023 (the "Acquisition Period") in determining same-store hotel EBITDA. |
| (2) | For hotels sold by the Company between April 1, 2022, and March 31, 2023 (the "Disposed Hotels"), the Company has excluded the financial results of each of the Disposed Hotels for the period beginning on April 1, 2022, and ending on the date the Disposed Hotels were sold by the Company (the "Disposition Period") in determining same-store hotel EBITDA. |
| (3) | Unaudited pro forma information includes operating results for 103 hotels owned as of March 31, 2023, as if all such hotels had been owned by the Company since April 1, 2022. For hotels acquired by the Company after April 1, 2022 (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 April 1, 2022, to March 31, 2023. 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. 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. |
| Summit Hotel Properties, Inc. | |||
| Pro Forma and Same Store Data | |||
| (Unaudited) | |||
| For the Three Months Ended March 31, | |||
| 2023 | 2022 | ||
| Pro Forma (103) | |||
| Rooms sold | 950,214 | 876,489 | |
| Rooms available | 1,380,060 | 1,365,327 | |
| Occupancy | 68.9 % | 64.2 % | |
| ADR | $ 171.63 | $ 154.34 | |
| RevPAR | $ 118.18 | $ 99.08 | |
| Occupancy change | 7.3 % | ||
| ADR change | 11.2 % | ||
| RevPAR change | 19.3 % | ||
| For the Three Months Ended March 31, | |||
| 2023 | 2022 | ||
| Same-Store (99) | |||
| Rooms sold | 919,767 | 857,146 | |
| Rooms available | 1,339,470 | 1,339,439 | |
| Occupancy | 68.7 % | 64.0 % | |
| ADR | $ 169.33 | $ 152.30 | |
| RevPAR | $ 116.28 | $ 97.46 | |
| Occupancy change | 7.3 % | ||
| ADR change | 11.2 % | ||
| RevPAR change | 19.3 % | ||
| (1) | Unaudited pro forma information includes operating results for 103 hotels owned as of March 31, 2023, as if each hotel had been owned by the Company since January 1, 2022. 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 99 hotels owned by the Company as of January 1, 2022, and at all times during the three months ended March 31, 2023, and 2022. |
| Summit Hotel Properties, Inc. | ||||
| Reconciliation of Net (Loss) Income to Non-GAAP Measures – EBITDA for Financial Outlook | ||||
| (in thousands) | ||||
| (Unaudited) | ||||
| FYE 2023 Outlook | ||||
| Low | High | |||
| Net (loss) income | $ (9,100) | $ 10,000 | ||
| Depreciation and amortization | 150,100 | 150,100 | ||
| Interest expense | 84,600 | 84,100 | ||
| Interest income | (100) | (100) | ||
| Income tax expense | 3,100 | 3,100 | ||
| EBITDA | $ 228,600 | $ 247,200 | ||
| Disposition of assets, net | 100 | 100 | ||
| EBITDAre | $ 228,700 | $ 247,300 | ||
| Recoveries of credit losses | (300) | (300) | ||
| Amortization of key money liabilities | (100) | (100) | ||
| Equity-based compensation | 7,300 | 7,300 | ||
| Debt transaction costs | 300 | 300 | ||
| Other non-cash items, net | 800 | 800 | ||
| Loss related to non-controlling interests in consolidated joint ventures | 12,300 | 9,200 | ||
| Adjustments related to non-controlling interests in consolidated joint ventures | (58,600) | (58,600) | ||
| Adjusted EBITDAre | $ 190,400 | $ 205,900 | ||
| 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 2023 Outlook | ||||
| Low | High | |||
| Net (loss) income | $ (9,100) | $ 10,000 | ||
| Preferred dividends | (15,900) | (15,900) | ||
| Distributions to and accretion of redeemable non-controlling interests | (2,600) | (2,600) | ||
| Loss related to non-controlling interests in consolidated joint ventures | 12,300 | 9,200 | ||
| Net (loss) income applicable to Common Stock and Common Units | $ (15,300) | $ 700 | ||
| Real estate-related depreciation | 145,800 | 145,800 | ||
| Disposition of assets, net | 100 | 100 | ||
| Adjustments related to non-controlling interests in consolidated joint ventures | (30,900) | (30,900) | ||
| FFO applicable to Common Stock and Common Units | $ 99,700 | $ 115,700 | ||
| Recoveries of credit losses | (300) | (300) | ||
| Amortization of debt issuance costs | 3,000 | 3,000 | ||
| Amortization of franchise fees | 600 | 600 | ||
| Amortization of intangible assets, net | 900 | 900 | ||
| Equity-based compensation | 7,300 | 7,300 | ||
| Debt transaction costs | 300 | 300 | ||
| Other non-cash items, net | 3,400 | 3,400 | ||
| Adjustments related to non-controlling interests in consolidated joint ventures | (2,800) | (2,800) | ||
| AFFO applicable to Common Stock and Common Units | $ 112,100 | $ 128,100 | ||
| Weighted average diluted shares of Common Stock and Common Units for FFO and AFFO | 122,400 | 122,400 | ||
| FFO per Common Stock and Common Units | $ 0.81 | $ 0.95 | ||
| AFFO per Common Stock and Common Units | $ 0.92 | $ 1.05 | ||