Four Points San Francisco Airport Hotel Sold
for $17.7 Million Subsequent to
Quarter-End
AUSTIN,
Texas, Nov. 4, 2024 /PRNewswire/ -- Summit Hotel
Properties, Inc. (NYSE: INN) (the "Company"), today announced
results for the three and nine months ended September 30, 2024.
"We are pleased with our third quarter financial results
highlighted by our third consecutive quarter of Adjusted FFO growth
as our accretive capital recycling program strategy offset moderate
top-line growth in the quarter, that was negatively affected by
disruption from Hurricane Helene in September in several of our key
markets. Year-to-date, Adjusted FFO per share has increased
by nearly eight percent driven by a 4.5 percent increase in
Adjusted EBITDA despite being a net seller of assets. Pro
forma hotel EBITDA margins expanded by over 30 basis points during
that period reflecting the efficiency of our hotels' operating
models and the strength of our operating platform," said
Jonathan P. Stanner, the Company's
President and Chief Executive Officer.
"We also continued our capital recycling program subsequent to
quarter-end, as we completed the sale of the Four Points San
Francisco Airport for $17.7
million. Over the last 18 months, we have sold 10
hotels generating nearly $150 million
of proceeds at less than a 5% capitalization rate including
foregone capital expenditures. Our disposition activity has
facilitated nearly a full turn reduction in leverage ratio,
enhanced the quality and growth profile of the portfolio,
significantly reduced near-term capital requirements, and created
capacity for future external growth," continued Mr. Stanner.
Third Quarter 2024 Summary
- Net Loss: Net loss attributable to common stockholders
was $4.3 million, or $0.04 per diluted share, compared to a net loss
of $5.4 million, or $0.05 per diluted share, for the third quarter of
2023.
- Pro forma RevPAR: Pro forma RevPAR increased 0.1 percent
to $120.02 compared to the third
quarter of 2023. Pro forma ADR increased 1.3 percent to
$162.95 compared to the same period
in 2023, and pro forma occupancy decreased 1.2 percent to 73.7
percent.
- Same Store RevPAR: Same Store RevPAR increased 0.2
percent to $120.28 compared to the
third quarter of 2023. Same store ADR increased 1.2 percent to
$163.06 and same store occupancy
decreased 1.0 percent to 73.8 percent.
- Pro Forma Hotel EBITDA(1): Pro forma hotel
EBITDA decreased 2.9 percent to $59.7
million from $61.5 million in
the same period in 2023. Pro forma hotel EBITDA margin contracted
approximately 99 basis points to 33.8 percent.
- Same Store Hotel EBITDA(1): Same store hotel
EBITDA decreased 2.9 percent to $59.2
million from $61.0 million in
the same period in 2023. Same store hotel EBITDA margin contracted
approximately 101 basis points to 33.8 percent.
- Adjusted EBITDAre(1): Adjusted
EBITDAre decreased 2.1 percent to $45.3 million from $46.3
million in the third quarter of 2023.
- Adjusted FFO(1): Adjusted FFO increased 4.0
percent to $27.6 million, or
$0.22 per diluted share, compared to
$26.5 million, or $0.22 per diluted share, in the third quarter of
2023.
Year-to-Date 2024 Summary
- Net Income: Net income attributable to common
stockholders was $24.5 million, or
$0.21 per diluted share, compared to
a net loss of $11.4 million, or
$0.11 per diluted share, in the same
period of 2023.
- Pro forma RevPAR: Pro forma RevPAR increased 1.6 percent
to $125.41 compared to the same
period of 2023. Pro forma ADR increased 0.3 percent to $168.67, and pro forma occupancy increased 1.2
percent to 74.4 percent.
- Same Store RevPAR: Same Store RevPAR increased 1.6
percent to $125.22 compared to the
same period of 2023. Same store ADR increased 0.3 percent to
$168.35, and same store occupancy
increased 1.3 percent to 74.4 percent.
- Pro Forma Hotel EBITDA(1): Pro forma hotel
EBITDA increased 3.1 percent to $198.5
million from $192.5 million,
and pro formal hotel EBITDA margin expanded 32 basis points to 36.1
percent.
- Same Store Hotel EBITDA(1): Same store hotel
EBITDA increased 3.1 percent to $195.5
million from $189.5 million,
and same store hotel EBITDA margin expanded 32 basis points to 36.0
percent.
- Adjusted EBITDAre(1): Adjusted
EBITDAre increased 4.5 percent to $150.1 million from $143.6
million in the same period of 2023.
- Adjusted FFO(1): Adjusted FFO increased 9.3
percent to $94.0 million, or
$0.76 per diluted share, compared to
$86.0 million, or $0.70 per diluted share, in the same period of
2023.
The Company's results for the three and nine months ended
September 30, 2024 and 2023 are as follows (in thousands,
except per share amounts and metrics):
|
For the Three Months
Ended
September 30,
|
|
For the Nine Months
Ended
September 30,
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
|
Net (loss) income
attributable to common stockholders
|
$
(4,272)
|
|
$
(5,438)
|
|
$
24,461
|
|
$
(11,419)
|
|
Net (loss) income per
diluted share
|
$
(0.04)
|
|
$
(0.05)
|
|
$
0.21
|
|
$
(0.11)
|
|
Total
revenues
|
$
176,807
|
|
$
181,816
|
|
$
558,852
|
|
$
558,692
|
|
EBITDAre
(1)
|
$
53,745
|
|
$
55,359
|
|
$
184,699
|
|
$
172,301
|
|
Adjusted EBITDAre
(1)
|
$
45,340
|
|
$
46,315
|
|
$
150,061
|
|
$
143,638
|
|
FFO
(1)
|
$
23,135
|
|
$
22,669
|
|
$
83,557
|
|
$
72,592
|
|
Adjusted FFO
(1)
|
$
27,610
|
|
$
26,546
|
|
$
93,976
|
|
$
85,957
|
|
FFO per diluted share
and unit (1) (2)
|
$
0.19
|
|
$
0.19
|
|
$
0.67
|
|
$
0.59
|
|
Adjusted FFO per
diluted share and unit (1) (2)
|
$
0.22
|
|
$
0.22
|
|
$
0.76
|
|
$
0.70
|
|
|
|
|
|
|
|
|
|
Pro Forma
(2)
|
|
|
|
|
|
|
|
|
RevPAR
|
$
120.02
|
|
$
119.90
|
|
$
125.41
|
|
$
123.47
|
|
RevPAR
Growth
|
0.1 %
|
|
|
|
1.6 %
|
|
|
|
Hotel EBITDA
|
$
59,745
|
|
$
61,516
|
|
$
198,497
|
|
$
192,531
|
|
Hotel EBITDA
Margin
|
33.8 %
|
|
34.8 %
|
|
36.1 %
|
|
35.8 %
|
|
Hotel EBITDA Margin
(Contraction) Growth
|
(99) bps
|
|
|
|
32
bps
|
|
|
|
|
|
|
|
|
|
|
|
Same Store
(3)
|
|
|
|
|
|
|
|
|
RevPAR
|
$
120.28
|
|
$
120.08
|
|
$
125.22
|
|
$
123.22
|
|
RevPAR
Growth
|
0.2 %
|
|
|
|
1.6 %
|
|
|
|
Hotel EBITDA
|
$
59,245
|
|
$
61,011
|
|
$
195,451
|
|
$
189,520
|
|
Hotel EBITDA
Margin
|
33.8 %
|
|
34.8 %
|
|
36.0 %
|
|
35.6 %
|
|
Hotel EBITDA Margin
(Contraction) Growth
|
(101) bps
|
|
|
|
32 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
(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 96 hotels owned as of
September 30, 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 94 hotels
owned as of September 30, 2024, and at all times during the
three and nine months ended September 30, 2024, and
2023.
|
Transaction Activity
Four Points San Francisco Airport Sold for $17.7 Million
Subsequent to the end of the third quarter, the Company
completed the sale of the 101-guestroom Four Points by Sheraton San
Francisco Airport for a gross sales price of $17.7 million. The hotel's net operating income
at the time of sale was de minimis and net proceeds were used for
debt repayment and general corporate purposes.
Over the last eighteen months, the Company and its affiliates
have sold ten 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 : Adjusted EBITDAre leverage ratio,
enhanced the quality and growth profile of the portfolio, and
significantly reduced near-term capital requirements.
|
Sold Hotels (2023
& YTD 2024)
|
|
Count
|
|
Keys
|
|
Date
|
|
Price (1)
|
|
Capex (1)(2)
|
|
RevPAR (3)
|
|
Hyatt Place
Chicago/Lombard
|
|
1
|
|
151
|
|
May 2023
|
|
$
10,500
|
|
$ 5,700
|
|
$
76
|
|
Hyatt Place
Chicago/Hoffman Estates
|
|
1
|
|
126
|
|
May 2023
|
|
3,000
|
|
7,200
|
|
68
|
|
Hilton Garden Inn
Minneapolis/Eden Prairie
|
|
1
|
|
97
|
|
May 2023
|
|
8,200
|
|
4,300
|
|
81
|
|
Holiday Inn Express
& Suites Minnetonka
|
|
1
|
|
93
|
|
May 2023
|
|
6,400
|
|
3,300
|
|
74
|
|
Hyatt Place
Baltimore/Owings Mills
|
|
1
|
|
123
|
|
Dec 2023
|
|
8,250
|
|
5,200
|
|
69
|
|
Hyatt Place
Dallas/Plano
|
|
1
|
|
127
|
|
Feb 2024
|
|
10,250
|
|
5,200
|
|
69
|
|
New Orleans (2)
Convention Center
|
|
2
|
|
410
|
|
Apr 2024
|
|
73,000
|
|
10,250
|
|
111
|
|
Hilton Garden Inn
College Station
|
|
1
|
|
119
|
|
Apr 2024
|
|
11,000
|
|
2,975
|
|
86
|
|
Four Points San
Francisco Airport
|
|
1
|
|
101
|
|
Oct 2024
|
|
17,700
|
|
3,000
|
|
65
|
|
Total
|
|
10
|
|
1,347
|
|
|
|
$
148,300
|
|
$
47,125
|
|
$
85
|
|
(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.
|
Capital Markets and Balance Sheet
On a pro rata basis as of September 30, 2024, the Company
had the following outstanding indebtedness and liquidity
available:
- Outstanding debt of $1.0 billion
with a weighted average interest rate of 4.68 percent. After giving
effect to interest rate derivative agreements, $798.9 million, or 77 percent, of our outstanding
debt had a fixed interest rate, and $243.9
million, or 23 percent, had a variable interest rate.
- Unrestricted cash and cash equivalents of $41.4 million.
- Total liquidity of over $400
million, including unrestricted cash and cash equivalents
and revolving credit facility availability, which reflects a
liquidity enhancement option available for the Company to exercise
in its sole discretion.
Common and Preferred Dividend Declaration
On October 24, 2024, 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 5.2 percent, based
on the closing price of shares of the common stock on November 1, 2024.
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 29,
2024, to holders of record as of November 15, 2024.
2024 Outlook
The Company is revising its full-year 2024 outlook to reflect
the moderating RevPAR growth environment and disruption related to
Hurricanes Helene and Milton in the third and fourth quarter.
The revised Adjusted EBITDAre range incorporates a high-end that
has been modestly tightened and Adjusted FFO and Adjusted FFO per
share ranges that have been tightened and midpoints maintained.
The full-year 2024 outlook is based on 95 lodging assets
currently owned, 53 of which were wholly owned as of
November 4, 2024. The updated outlook incorporates all
transaction activity closed to date and there are no additional
acquisitions, dispositions, or capital markets activities assumed
in the Company's full-year 2024 outlook beyond the transactions
already completed. The revised 2024 outlook incorporates the
sale of the 101-guestroom Four Points San Francisco Airport.
|
|
FYE 2024
Outlook
|
|
|
Low
|
|
High
|
|
Variance to
Prior
Midpoint
|
|
% Change to
Prior
Midpoint
|
|
Pro Forma RevPAR Growth
(1)
|
|
1.00 %
|
|
2.00 %
|
|
(0.25) %
|
|
— %
|
|
Adjusted
EBITDAre
|
|
$
188,000
|
|
$
194,000
|
|
$
(1,000)
|
|
(0.5) %
|
|
Adjusted FFO
|
|
$
113,000
|
|
$
121,000
|
|
$
—
|
|
— %
|
|
Adjusted FFO per
Diluted Unit
|
|
$
0.92
|
|
$
0.98
|
|
$
—
|
|
— %
|
|
Capital Expenditures,
Pro Rata
|
|
$
75,000
|
|
$
85,000
|
|
$
5,000
|
|
6.7 %
|
|
(1) All pro forma information includes operating and
financial results for 95 lodging assets owned as of
November 4, 2024, as if each property had been owned by the
Company since January 1, 2023 and will continue to be owned through
the entire year ending December 31, 2024. As a result, the pro
forma information includes operating and financial results for
lodging assets acquired since January 1, 2023, which may include
periods prior to the Company's ownership. Pro forma and non-GAAP
financial measures are unaudited.
|
Third Quarter 2024 Earnings Conference Call
The Company will conduct its quarterly conference call on
November 5, 2024, 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
January 31, 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 November 4, 2024, the
Company's portfolio consisted of 95 assets, 53 of which are wholly
owned, with a total of 14,154 guestrooms located in 24 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, 2023, 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.
Condensed
Consolidated Balance Sheets
(In
thousands)
|
|
|
September 30,
2024
|
|
December 31,
2023
|
|
|
(Unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
|
Investments in lodging
property, net
|
|
$
2,669,478
|
|
$
2,736,975
|
|
Investment in lodging
property under development
|
|
5,397
|
|
1,451
|
|
Assets held for sale,
net
|
|
18,621
|
|
65,736
|
|
Cash and cash
equivalents
|
|
51,698
|
|
37,837
|
|
Restricted
cash
|
|
7,339
|
|
9,931
|
|
Right-of-use assets,
net
|
|
33,454
|
|
34,814
|
|
Trade receivables,
net
|
|
20,724
|
|
21,348
|
|
Prepaid expenses and
other
|
|
16,647
|
|
8,865
|
|
Deferred charges,
net
|
|
6,237
|
|
6,659
|
|
Other assets
|
|
7,688
|
|
15,632
|
|
Total
assets
|
|
$
2,837,283
|
|
$
2,939,248
|
|
|
|
|
|
|
LIABILITIES,
REDEEMABLE NON-CONTROLLING INTERESTS
AND EQUITY
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
Debt, net of debt
issuance costs
|
|
$
1,336,095
|
|
$
1,430,668
|
|
Lease liabilities,
net
|
|
24,879
|
|
25,842
|
|
Accounts
payable
|
|
6,130
|
|
4,827
|
|
Accrued expenses and
other
|
|
96,679
|
|
81,215
|
|
Total
liabilities
|
|
1,463,783
|
|
1,542,552
|
|
|
|
|
|
|
Redeemable
non-controlling interests
|
|
50,219
|
|
50,219
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
911,436
|
|
911,195
|
|
Non-controlling
interests
|
|
411,845
|
|
435,282
|
|
Total
equity
|
|
1,323,281
|
|
1,346,477
|
|
Total liabilities,
redeemable non-controlling interests and equity
|
|
$
2,837,283
|
|
$
2,939,248
|
|
Summit Hotel
Properties, Inc.
Condensed
Consolidated Statements of Operations
(Unaudited)
(In thousands,
except per share amounts)
|
|
|
For the Three
Months
Ended September 30,
|
|
For the Nine
Months
Ended September 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Room
|
|
$
157,408
|
|
$
161,712
|
|
$
497,864
|
|
$
498,982
|
|
Food and
beverage
|
|
9,272
|
|
9,949
|
|
30,174
|
|
30,848
|
|
Other
|
|
10,127
|
|
10,155
|
|
30,814
|
|
28,862
|
|
Total
revenues
|
|
176,807
|
|
181,816
|
|
558,852
|
|
558,692
|
|
|
|
|
|
|
|
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
Room
|
|
37,286
|
|
37,510
|
|
111,303
|
|
112,207
|
|
Food and
beverage
|
|
7,289
|
|
7,684
|
|
23,130
|
|
23,679
|
|
Other lodging property
operating expenses
|
|
56,330
|
|
55,826
|
|
170,061
|
|
169,780
|
|
Property taxes,
insurance and other
|
|
13,250
|
|
14,369
|
|
40,822
|
|
43,308
|
|
Management
fees
|
|
2,728
|
|
4,177
|
|
12,059
|
|
13,974
|
|
Depreciation and
amortization
|
|
36,708
|
|
37,882
|
|
109,965
|
|
112,300
|
|
Corporate general and
administrative
|
|
7,473
|
|
8,126
|
|
24,488
|
|
25,225
|
|
Transaction
costs
|
|
10
|
|
—
|
|
10
|
|
24
|
|
Recovery of credit
losses
|
|
—
|
|
(250)
|
|
—
|
|
(500)
|
|
Total
expenses
|
|
161,074
|
|
165,324
|
|
491,838
|
|
499,997
|
|
Gain (loss) on
disposal of assets, net
|
|
22
|
|
(16)
|
|
28,439
|
|
(336)
|
|
Operating
income
|
|
15,755
|
|
16,476
|
|
95,453
|
|
58,359
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
(20,428)
|
|
(22,020)
|
|
(62,840)
|
|
(65,177)
|
|
Interest
income
|
|
450
|
|
474
|
|
1,473
|
|
1,190
|
|
Gain on extinguishment
of debt
|
|
—
|
|
—
|
|
3,000
|
|
—
|
|
Other income,
net
|
|
999
|
|
661
|
|
3,813
|
|
458
|
|
Total other expense,
net
|
|
(18,979)
|
|
(20,885)
|
|
(54,554)
|
|
(63,529)
|
|
(Loss) income from
continuing operations before income
taxes
|
|
(3,224)
|
|
(4,409)
|
|
40,899
|
|
(5,170)
|
|
Income tax
expense
|
|
(332)
|
|
(1,360)
|
|
(2,924)
|
|
(1,679)
|
|
Net (loss)
income
|
|
(3,556)
|
|
(5,769)
|
|
37,975
|
|
(6,849)
|
|
Less - Loss
attributable to non-controlling interests
|
|
3,908
|
|
4,955
|
|
362
|
|
9,306
|
|
Net income (loss)
attributable to Summit Hotel Properties,
Inc. before preferred dividends
|
|
352
|
|
(814)
|
|
38,337
|
|
2,457
|
|
Less - Distributions to
and accretion of redeemable non-
controlling interests
|
|
(656)
|
|
(656)
|
|
(1,970)
|
|
(1,970)
|
|
Less - Preferred
dividends
|
|
(3,968)
|
|
(3,968)
|
|
(11,906)
|
|
(11,906)
|
|
Net (loss) income
attributable to common stockholders
|
|
$
(4,272)
|
|
$
(5,438)
|
|
$
24,461
|
|
$
(11,419)
|
|
|
|
|
|
|
|
|
|
|
(Loss) income per
common share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
(0.04)
|
|
$
(0.05)
|
|
$
0.23
|
|
$
(0.11)
|
|
Diluted
|
|
$
(0.04)
|
|
$
(0.05)
|
|
$
0.21
|
|
$
(0.11)
|
|
Weighted-average
common shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
106,033
|
|
105,650
|
|
105,891
|
|
105,510
|
|
Diluted
|
|
106,033
|
|
105,650
|
|
150,003
|
|
105,510
|
|
Summit Hotel
Properties, Inc.
Reconciliation of
Net (Loss) Income to Non-GAAP Measures - Funds From
Operations
|
|
(Unaudited)
|
|
(In thousands,
except per share and unit amounts)
|
|
|
For the Three
Months
Ended September 30,
|
|
For the Nine
Months
Ended September 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net (loss)
income
|
|
$
(3,556)
|
|
$
(5,769)
|
|
$
37,975
|
|
$
(6,849)
|
|
Preferred
dividends
|
|
(3,968)
|
|
(3,968)
|
|
(11,906)
|
|
(11,906)
|
|
Distributions to and
accretion of redeemable non-controlling
interests
|
|
(656)
|
|
(656)
|
|
(1,970)
|
|
(1,970)
|
|
Loss related to
non-controlling interest in consolidated joint
ventures
|
|
3,274
|
|
4,442
|
|
4,011
|
|
8,093
|
|
Net (loss) income
applicable to Common Stock and
Common Units
|
|
(4,906)
|
|
(5,951)
|
|
28,110
|
|
(12,632)
|
|
Real estate-related
depreciation
|
|
35,721
|
|
36,697
|
|
106,590
|
|
108,751
|
|
(Gain) loss on disposal
of assets and other dispositions, net
|
|
(22)
|
|
16
|
|
(28,439)
|
|
384
|
|
Adjustments related to
non-controlling interests in
consolidated joint ventures
|
|
(7,658)
|
|
(8,093)
|
|
(22,704)
|
|
(23,911)
|
|
FFO applicable to
Common Stock and Common Units
|
|
23,135
|
|
22,669
|
|
83,557
|
|
72,592
|
|
Recoveries of credit
losses
|
|
—
|
|
(250)
|
|
—
|
|
(500)
|
|
Amortization of debt
issuance costs
|
|
1,640
|
|
1,594
|
|
4,880
|
|
4,379
|
|
Amortization of
franchise fees
|
|
169
|
|
153
|
|
494
|
|
439
|
|
Amortization of
intangible assets, net
|
|
698
|
|
911
|
|
2,520
|
|
2,733
|
|
Equity-based
compensation
|
|
1,854
|
|
1,867
|
|
6,337
|
|
5,913
|
|
Transaction costs and
other
|
|
10
|
|
—
|
|
10
|
|
24
|
|
Debt transaction
costs
|
|
66
|
|
90
|
|
647
|
|
418
|
|
Gain on extinguishment
of debt
|
|
—
|
|
—
|
|
(3,000)
|
|
—
|
|
Non-cash interest
income, net (1)
|
|
(134)
|
|
(134)
|
|
(400)
|
|
(397)
|
|
Non-cash lease expense,
net
|
|
110
|
|
106
|
|
332
|
|
368
|
|
Casualty loss
(gain)
|
|
244
|
|
380
|
|
(637)
|
|
1,851
|
|
Other non-cash items,
net
|
|
604
|
|
—
|
|
963
|
|
768
|
|
Adjustments related to
non-controlling interests in
consolidated joint ventures
|
|
(786)
|
|
(840)
|
|
(1,727)
|
|
(2,631)
|
|
AFFO applicable to
Common Stock and Common
Units
|
|
$
27,610
|
|
$
26,546
|
|
$
93,976
|
|
$
85,957
|
|
FFO per share of
Common Stock and Common Units
|
|
$
0.19
|
|
$
0.19
|
|
$
0.67
|
|
$
0.59
|
|
AFFO per share of
Common Stock and Common Units
|
|
$
0.22
|
|
$
0.22
|
|
$
0.76
|
|
$
0.70
|
|
Weighted-average
diluted shares of Common Stock and
Common Units:
|
|
|
|
|
|
|
|
|
|
FFO and AFFO
(2)
|
|
124,580
|
|
122,513
|
|
124,389
|
|
122,312
|
|
(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 September 30,
|
|
For the Nine
Months
Ended September 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Weighted average common
shares outstanding - diluted
|
|
106,033
|
|
105,650
|
|
150,003
|
|
105,510
|
|
Adjusted
for:
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjustment for
restricted stock awards
|
|
2,604
|
|
893
|
|
—
|
|
828
|
|
Non-GAAP adjustment for
dilutive effects of Common
Units
|
|
15,943
|
|
15,970
|
|
—
|
|
15,974
|
|
Non-GAAP adjustment for
dilutive effect of shares of
Common Stock issuable upon conversion of convertible
debt (1)
|
|
—
|
|
—
|
|
(25,614)
|
|
—
|
|
Non-GAAP
weighted diluted share of Common Stock
and Common Units
|
|
124,580
|
|
122,513
|
|
124,389
|
|
122,312
|
|
(1) The
weighted-average shares of Common Stock and Common Units used to
calculate FFO and AFFO per share of Common Stock and Common Units
for the three and nine months ended September 30, 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 (Loss) Income to Non-GAAP Measures - EBITDAre
|
|
(Unaudited)
|
|
(In
thousands)
|
|
|
For the Three
Months
Ended September 30,
|
|
For the Nine
Months
Ended September 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net (loss)
income
|
|
$
(3,556)
|
|
$
(5,769)
|
|
$
37,975
|
|
$
(6,849)
|
|
Depreciation and
amortization
|
|
36,708
|
|
37,882
|
|
109,965
|
|
112,300
|
|
Interest
expense
|
|
20,428
|
|
22,020
|
|
62,840
|
|
65,177
|
|
Interest income on cash
deposits
|
|
(145)
|
|
(150)
|
|
(566)
|
|
(390)
|
|
Income tax
expense
|
|
332
|
|
1,360
|
|
2,924
|
|
1,679
|
|
EBITDA
|
|
53,767
|
|
55,343
|
|
213,138
|
|
171,917
|
|
(Gain) loss on disposal
of assets and other dispositions, net
|
|
(22)
|
|
16
|
|
(28,439)
|
|
384
|
|
EBITDAre
|
|
53,745
|
|
55,359
|
|
184,699
|
|
172,301
|
|
Recoveries of credit
losses
|
|
—
|
|
(250)
|
|
—
|
|
(500)
|
|
Amortization of key
money liabilities
|
|
(120)
|
|
(121)
|
|
(362)
|
|
(378)
|
|
Equity-based
compensation
|
|
1,854
|
|
1,867
|
|
6,337
|
|
5,913
|
|
Transaction costs and
other
|
|
10
|
|
—
|
|
10
|
|
24
|
|
Debt transaction
costs
|
|
66
|
|
90
|
|
647
|
|
418
|
|
Gain on extinguishment
of debt
|
|
—
|
|
—
|
|
(3,000)
|
|
—
|
|
Non-cash interest
income, net (1)
|
|
(134)
|
|
(134)
|
|
(400)
|
|
(397)
|
|
Non-cash lease expense,
net
|
|
110
|
|
106
|
|
332
|
|
368
|
|
Casualty loss
(gain)
|
|
244
|
|
380
|
|
(637)
|
|
1,851
|
|
Loss related to
non-controlling interest in consolidated joint
ventures
|
|
3,274
|
|
4,442
|
|
4,011
|
|
8,093
|
|
Other non-cash items,
net
|
|
604
|
|
—
|
|
966
|
|
705
|
|
Adjustments related to
non-controlling interests in
consolidated joint ventures
|
|
(14,313)
|
|
(15,424)
|
|
(42,542)
|
|
(44,760)
|
|
Adjusted
EBITDAre
|
|
$
45,340
|
|
$
46,315
|
|
$
150,061
|
|
$
143,638
|
|
(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
September 30,
|
|
For the Nine Months
Ended
September 30,
|
|
Pro Forma Operating
Data
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Pro forma room
revenue
|
|
$
157,408
|
|
$
157,247
|
|
$
489,889
|
|
$
480,492
|
|
Pro forma other hotel
operations revenue
|
|
19,399
|
|
19,617
|
|
60,325
|
|
57,983
|
|
Pro forma total
revenues
|
|
176,807
|
|
176,864
|
|
550,214
|
|
538,475
|
|
Pro forma total hotel
operating expenses
|
|
117,062
|
|
115,348
|
|
351,717
|
|
345,944
|
|
Pro forma hotel
EBITDA
|
|
$
59,745
|
|
$
61,516
|
|
$
198,497
|
|
$
192,531
|
|
Pro forma hotel EBITDA
Margin
|
|
33.8 %
|
|
34.8 %
|
|
36.1 %
|
|
35.8 %
|
|
|
|
|
|
|
|
|
|
|
Reconciliations of
Non-GAAP financial measures to comparable GAAP
financial measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
$
176,807
|
|
$
181,816
|
|
$
558,852
|
|
$
558,692
|
|
Total revenues -
acquisitions (1)
|
|
—
|
|
—
|
|
—
|
|
4,715
|
|
Total revenues -
dispositions (2)
|
|
—
|
|
(4,952)
|
|
(8,638)
|
|
(24,932)
|
|
Pro forma total
revenues
|
|
176,807
|
|
176,864
|
|
550,214
|
|
538,475
|
|
|
|
|
|
|
|
|
|
|
Hotel Operating
Expenses:
|
|
|
|
|
|
|
|
|
|
Hotel operating
expenses
|
|
$
116,883
|
|
$
119,566
|
|
$
357,375
|
|
$
362,948
|
|
Hotel operating
expenses - acquisitions (1)
|
|
—
|
|
—
|
|
—
|
|
2,279
|
|
Hotel operating
expenses - dispositions (2)
|
|
179
|
|
(4,218)
|
|
(5,658)
|
|
(19,283)
|
|
Pro forma hotel
operating expense
|
|
117,062
|
|
115,348
|
|
351,717
|
|
345,944
|
|
|
|
|
|
|
|
|
|
|
Hotel
EBITDA:
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
15,755
|
|
16,476
|
|
95,453
|
|
58,359
|
|
(Gain) loss on disposal
of assets and other dispositions, net
|
|
(22)
|
|
16
|
|
(28,439)
|
|
336
|
|
Recoveries of credit
losses
|
|
—
|
|
(250)
|
|
—
|
|
(500)
|
|
Transaction
costs
|
|
10
|
|
—
|
|
10
|
|
24
|
|
Corporate general and
administrative
|
|
7,473
|
|
8,126
|
|
24,488
|
|
25,225
|
|
Depreciation and
amortization
|
|
36,708
|
|
37,882
|
|
109,965
|
|
112,300
|
|
Hotel
EBITDA
|
|
59,924
|
|
62,250
|
|
201,477
|
|
195,744
|
|
Hotel EBITDA -
acquisitions (1)
|
|
(499)
|
|
(505)
|
|
(3,046)
|
|
(574)
|
|
Hotel EBITDA -
dispositions (2)
|
|
(180)
|
|
(734)
|
|
(2,980)
|
|
(5,650)
|
|
Same Store hotel
EBITDA
|
|
59,245
|
|
61,011
|
|
195,451
|
|
189,520
|
|
Hotel EBITDA -
acquisitions (3)
|
|
500
|
|
505
|
|
3,046
|
|
3,011
|
|
Pro forma hotel
EBITDA
|
|
$
59,745
|
|
$
61,516
|
|
$
198,497
|
|
$
192,531
|
|
(1) For any hotels
acquired by the Company after October 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 September 30, 2024 (the "Acquisition
Period") in determining same-store hotel
EBITDA.
|
|
|
(2) For hotels sold
by the Company between October 1, 2023, and September 30, 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.
|
|
|
(3) Unaudited pro
forma information includes operating results for 96 hotels owned as
of September 30, 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
September 30, 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. 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)
|
|
|
|
|
|
|
|
|
|
|
Trailing
Twelve
|
|
|
2023
|
|
2024
|
|
Months
Ended
|
|
Pro Forma Operating
Data (1)
|
|
Q4
|
|
Q1
|
|
Q2
|
|
Q3
|
|
September 30,
2024
|
|
Pro forma room
revenue
|
|
$
150,382
|
|
$
160,705
|
|
$
171,776
|
|
$
157,408
|
|
$
640,271
|
|
Pro forma other hotel
operations revenue
|
|
19,861
|
|
20,187
|
|
20,739
|
|
19,399
|
|
80,186
|
|
Pro forma total
revenues
|
|
170,243
|
|
180,892
|
|
192,515
|
|
176,807
|
|
720,457
|
|
Pro forma total hotel
operating expenses
|
|
110,014
|
|
115,235
|
|
119,420
|
|
117,062
|
|
461,731
|
|
Pro forma hotel
EBITDA
|
|
$
60,229
|
|
$
65,657
|
|
$
73,095
|
|
$
59,745
|
|
$
258,726
|
|
Pro forma hotel EBITDA
Margin
|
|
35.4 %
|
|
36.3 %
|
|
38.0 %
|
|
33.8 %
|
|
35.9 %
|
|
|
|
|
|
|
|
|
|
|
|
|
Pro Forma Statistics
(1)
|
|
|
|
|
|
|
|
|
|
|
|
Rooms sold
|
|
926,797
|
|
930,768
|
|
1,007,709
|
|
966,019
|
|
3,831,293
|
|
Rooms
available
|
|
1,311,552
|
|
1,297,296
|
|
1,297,296
|
|
1,311,563
|
|
5,217,707
|
|
Occupancy
|
|
70.7 %
|
|
71.7 %
|
|
77.7 %
|
|
73.7 %
|
|
73.4 %
|
|
ADR
|
|
$
162.26
|
|
$
172.66
|
|
$
170.46
|
|
$
162.95
|
|
$
167.12
|
|
RevPAR
|
|
$
114.66
|
|
$
123.88
|
|
$
132.41
|
|
$
120.02
|
|
$
122.71
|
|
|
|
|
|
|
|
|
|
|
|
|
Actual
Statistics
|
|
|
|
|
|
|
|
|
|
|
|
Rooms sold
|
|
970,959
|
|
969,479
|
|
1,014,864
|
|
966,019
|
|
3,921,321
|
|
Rooms
available
|
|
1,381,867
|
|
1,351,150
|
|
1,306,712
|
|
1,311,563
|
|
5,351,292
|
|
Occupancy
|
|
70.3 %
|
|
71.8 %
|
|
77.7 %
|
|
73.7 %
|
|
73.3 %
|
|
ADR
|
|
$
161.78
|
|
$
172.70
|
|
$
170.49
|
|
$
162.95
|
|
$
167.02
|
|
RevPAR
|
|
$
113.67
|
|
$
123.92
|
|
$
132.41
|
|
$
120.02
|
|
$
122.39
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliations of
Non-GAAP financial measures to comparable GAAP financial
measures
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenues
|
|
$
177,436
|
|
$
188,142
|
|
$
193,903
|
|
$
176,807
|
|
$
736,288
|
|
Total revenues -
acquisitions (1)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Total revenues -
dispositions (2)
|
|
(7,193)
|
|
(7,250)
|
|
(1,388)
|
|
—
|
|
(15,831)
|
|
Pro forma total
revenues
|
|
170,243
|
|
180,892
|
|
192,515
|
|
176,807
|
|
720,457
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel Operating
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
Hotel operating
expenses
|
|
115,158
|
|
119,618
|
|
120,874
|
|
116,883
|
|
472,533
|
|
Hotel operating
expenses - acquisitions (1)
|
|
—
|
|
—
|
|
—
|
|
—
|
|
—
|
|
Hotel operating
expenses - dispositions (2)
|
|
(5,144)
|
|
(4,383)
|
|
(1,454)
|
|
179
|
|
(10,802)
|
|
Pro forma hotel
operating expenses
|
|
110,014
|
|
115,235
|
|
119,420
|
|
117,062
|
|
461,731
|
|
|
|
|
|
|
|
|
|
|
|
|
Hotel
EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
428
|
|
23,489
|
|
56,209
|
|
15,755
|
|
95,881
|
|
Loss (gain) on disposal
of assets, net
|
|
1
|
|
(75)
|
|
(28,342)
|
|
(22)
|
|
(28,438)
|
|
Loss on impairment and
write-off of assets
|
|
16,661
|
|
—
|
|
—
|
|
—
|
|
16,661
|
|
Recoveries of credit
losses
|
|
(730)
|
|
—
|
|
—
|
|
—
|
|
(730)
|
|
Hotel acquisition and
transition costs
|
|
(11)
|
|
—
|
|
—
|
|
10
|
|
(1)
|
|
Corporate general and
administrative
|
|
7,305
|
|
8,311
|
|
8,704
|
|
7,473
|
|
31,793
|
|
Depreciation and
amortization
|
|
38,624
|
|
36,799
|
|
36,458
|
|
36,708
|
|
148,589
|
|
Hotel
EBITDA
|
|
62,278
|
|
68,524
|
|
73,029
|
|
59,924
|
|
263,755
|
|
Hotel EBITDA -
acquisitions (1)
|
|
(876)
|
|
(1,838)
|
|
(709)
|
|
(499)
|
|
(3,922)
|
|
Hotel EBITDA -
dispositions (2)
|
|
(2,049)
|
|
(2,867)
|
|
67
|
|
(180)
|
|
(5,029)
|
|
Same store hotel
EBITDA
|
|
59,353
|
|
63,819
|
|
72,387
|
|
59,245
|
|
254,804
|
|
Hotel EBITDA -
acquisitions (3)
|
|
876
|
|
1,838
|
|
708
|
|
500
|
|
3,922
|
|
Pro forma hotel
EBITDA
|
|
$
60,229
|
|
$
65,657
|
|
$
73,095
|
|
$
59,745
|
|
$
258,726
|
|
(1) For any hotels
acquired by the Company after January 1, 2024 (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 September 30, 2024 (the "Acquisition
Period") in determining same-store hotel
EBITDA.
|
|
|
(2) For hotels sold
by the Company between January 1, 2024, and
September 30, 2024 (the "Disposed Hotels"), the Company has
excluded the financial results of each of the Disposed Hotels for
the period beginning on October 1, 2023 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 96 hotels owned as
of September 30, 2024, as if all such hotels had been owned by
the Company since January 1, 2024. For hotels acquired by the
Company after October 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
October 1, 2023, to September 30, 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. 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
September 30,
|
|
For the Nine Months
Ended
September 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Pro Forma
(1)
|
|
|
|
|
|
|
|
|
|
Rooms sold
|
|
966,019
|
|
977,432
|
|
2,904,496
|
|
2,858,359
|
|
Rooms
available
|
|
1,311,563
|
|
1,311,521
|
|
3,906,155
|
|
3,891,676
|
|
Occupancy
|
|
73.7 %
|
|
74.5 %
|
|
74.4 %
|
|
73.4 %
|
|
ADR
|
|
$
162.95
|
|
$
160.88
|
|
$ 168.67
|
|
$ 168.10
|
|
RevPAR
|
|
$
120.02
|
|
$
119.90
|
|
$ 125.41
|
|
$ 123.47
|
|
|
|
|
|
|
|
|
|
|
Occupancy
change
|
|
(1.2) %
|
|
|
|
1.2 %
|
|
|
|
ADR
change
|
|
1.3 %
|
|
|
|
0.3 %
|
|
|
|
RevPAR
change
|
|
0.1 %
|
|
|
|
1.6 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three Months
Ended
September 30,
|
|
For the Nine
Months
Ended September 30,
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Same-Store
(2)
|
|
|
|
|
|
|
|
|
|
Rooms sold
|
|
956,116
|
|
966,097
|
|
2,871,356
|
|
2,824,349
|
|
Rooms
available
|
|
1,296,199
|
|
1,296,157
|
|
3,860,397
|
|
3,846,085
|
|
Occupancy
|
|
73.8 %
|
|
74.5 %
|
|
74.4 %
|
|
73.4 %
|
|
ADR
|
|
$
163.06
|
|
$
161.11
|
|
$ 168.35
|
|
$ 167.80
|
|
RevPAR
|
|
$
120.28
|
|
$
120.08
|
|
$ 125.22
|
|
$ 123.22
|
|
|
|
|
|
|
|
|
|
|
Occupancy
change
|
|
(1.0) %
|
|
|
|
1.3 %
|
|
|
|
ADR
change
|
|
1.2 %
|
|
|
|
0.3 %
|
|
|
|
RevPAR
change
|
|
0.2 %
|
|
|
|
1.6 %
|
|
|
|
(1) Unaudited pro
forma information includes operating results for 96 hotels owned as
of September 30, 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 94 hotels owned by the
Company as of January 1, 2023, and at all times during the three
and nine months ended September 30, 2024, and
2023.
|
|
Summit Hotel
Properties, Inc.
Reconciliation of
Net Income to Non-GAAP Measures - EBITDA for Financial
Outlook
|
|
(In
thousands)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
Low
|
|
High
|
|
Net income
|
|
$
31,000
|
|
$
38,600
|
|
Depreciation and
amortization
|
|
146,800
|
|
146,800
|
|
Interest
expense
|
|
82,000
|
|
81,900
|
|
Interest
income
|
|
(600)
|
|
(600)
|
|
Income tax
expense
|
|
2,500
|
|
2,500
|
|
EBITDA
|
|
261,700
|
|
269,200
|
|
Gain on disposal of
assets and other dispositions, net
|
|
(30,100)
|
|
(30,100)
|
|
EBITDAre
|
|
231,600
|
|
239,100
|
|
Equity-based
compensation
|
|
8,300
|
|
8,300
|
|
Debt transaction
costs
|
|
(2,200)
|
|
(2,200)
|
|
Other non-cash items,
net
|
|
(100)
|
|
(100)
|
|
Loss related to
non-controlling interests in consolidated joint ventures
|
|
4,100
|
|
4,500
|
|
Adjustments related to
non-controlling interests in consolidated joint ventures
|
|
(53,700)
|
|
(55,600)
|
|
Adjusted
EBITDAre
|
|
$
188,000
|
|
$
194,000
|
|
Summit Hotel
Properties, Inc.
Reconciliation of
Net Income to Non-GAAP Measures - Funds From Operations for
Financial Outlook
|
|
(In thousands except
per share and unit)
|
|
(Unaudited)
|
|
|
|
|
|
|
|
FYE 2024
Outlook
|
|
|
Low
|
|
High
|
|
Net income
|
|
$
31,000
|
|
$
38,600
|
|
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
|
|
4,100
|
|
4,500
|
|
Net income
applicable to Common Stock and Common Units
|
|
16,600
|
|
24,600
|
|
Real estate-related
depreciation
|
|
143,300
|
|
143,300
|
|
Gain on disposal of
assets and other dispositions, net
|
|
(30,100)
|
|
(30,100)
|
|
Adjustments related to
non-controlling interests in consolidated joint ventures
|
|
(30,900)
|
|
(30,900)
|
|
FFO applicable to
Common Stock and Common Units
|
|
98,900
|
|
106,900
|
|
Amortization of debt
issuance costs
|
|
6,600
|
|
6,600
|
|
Amortization of
franchise fees
|
|
600
|
|
600
|
|
Equity-based
compensation
|
|
8,300
|
|
8,300
|
|
Debt transaction
costs
|
|
(2,200)
|
|
(2,200)
|
|
Other non-cash items,
net
|
|
2,800
|
|
2,800
|
|
Adjustments related to
non-controlling interests in consolidated joint ventures
|
|
(2,000)
|
|
(2,000)
|
|
AFFO applicable to
Common Stock and Common Units
|
|
$
113,000
|
|
$
121,000
|
|
Weighted average
diluted shares of Common Stock and Common Units for FFO and
AFFO
|
|
123,400
|
|
123,400
|
|
FFO per Common Stock
and Common Units
|
|
$
0.80
|
|
$
0.87
|
|
AFFO per Common Stock
and Common Units
|
|
$
0.92
|
|
$
0.98
|
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.