SUMMIT HOTEL PROPERTIES REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS

Rhea-AI Summary

Summit Hotel Properties (NYSE: INN) reported fourth-quarter and full-year 2025 results, citing portfolio RevPAR declines and portfolio stabilization late in Q4. Net loss for FY2025 was $23.6M and adjusted FFO was $103.6M. The company completed multiple asset sales (~$200M since 2023) and repaid convertible notes via a delayed draw term loan, leaving no debt maturities until 2028 and pro rata unrestricted cash of $30.1M. FYE 2026 guidance: pro forma RevPAR growth 0–3% and adjusted FFO $89M–$103.5M.

Positive

• No debt maturities until 2028
• Asset sales totaling ~$200M since 2023
• Preserved ~$59.9M of near-term capex via disposals
• Repaid $287.5M convertible notes using term loan

Negative

• Full-year net loss of $23.6M
• Adjusted FFO down ~13% to $103.6M
• Hotel EBITDA margin decline of ~222 bps pro forma
• Outstanding debt of $1.1B with 4.48% average rate

Market Reaction – INN

+6.31% $4.55

15m delay 9 alerts

+6.31% Since News

$4.55 Last Price

$4.42 $4.59 Day Range

+$29M Valuation Impact

$495M Market Cap

0.2x Rel. Volume

Following this news, INN has gained 6.31%, reflecting a notable positive market reaction. Our momentum scanner has triggered 9 alerts so far, indicating moderate trading interest and price volatility. The stock is currently trading at $4.55. This price movement has added approximately $29M to the company's valuation.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Silver for real-time data.

Key Figures

Q4 2025 net loss: $6.0 million (−$0.06 per diluted share) FY 2025 net loss: $23.6 million (−$0.22 per diluted share) Q4 same-store RevPAR: $115.34 (−1.6%) +5 more

8 metrics

Q4 2025 net loss $6.0 million (−$0.06 per diluted share) Q4 2025 vs Q4 2024 net income of $0.7 million

FY 2025 net loss $23.6 million (−$0.22 per diluted share) Full year 2025 vs FY 2024 net income of $25.1 million

Q4 same-store RevPAR $115.34 (−1.6%) Q4 2025 vs Q4 2024

FY same-store RevPAR $121.73 (−1.8%) Full year 2025 vs 2024

FY 2025 Adjusted FFO $103.6 million ($0.85 per diluted share) Down from $119.2 million ($0.96 per share) in 2024

2026 Adjusted FFO outlook $89.0–$103.5 million Company’s full-year 2026 guidance range

Common dividend $0.08 per share quarterly Declared Jan 22, 2026; yield 7.7% on Feb 24, 2026 close

Outstanding debt $1.1 billion at 4.48% rate Pro rata as of December 31, 2025; 77% fixed after swaps

Market Reality Check

Price: $4.28 Vol: Volume 892,631 vs 20-day ...

normal vol

$4.28 Last Close

Volume Volume 892,631 vs 20-day average 751,779 (relative volume 1.19x). normal

Technical Price $4.28 is trading below the 200-day MA at $5.07 and well under the $6.65 52-week high.

Peers on Argus

INN is down 1.65% while peers show mixed moves (some positive like SVC, SHO and ...

INN is down 1.65% while peers show mixed moves (some positive like SVC, SHO and others negative like AHT, RLJ, XHR), pointing to a stock-specific reaction.

Previous Earnings Reports

5 past events · Latest: Nov 04 (Negative)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Nov 04	Q3 2025 earnings	Negative	+2.5%	Net loss and RevPAR declines alongside asset sales and refinancing steps.
Aug 05	Q2 2025 earnings	Negative	+0.4%	Net loss, lower pro forma RevPAR and Adjusted FFO versus prior year.
Apr 30	Q1 2025 earnings	Neutral	+1.5%	Modest RevPAR growth but higher net loss and slightly lower hotel EBITDA.
Feb 24	FY 2024 earnings	Positive	-1.1%	Improved 2024 Adjusted FFO and EBITDAre with active deal activity.
Nov 04	Q3 2024 earnings	Neutral	-1.9%	Net loss but flat RevPAR and higher Adjusted FFO amid hurricane impacts.

Pattern Detected

Earnings releases have typically produced small price moves (average 0.27%), with several instances of share price moves diverging from the underlying earnings tone.

Recent Company History

Across the last five earnings releases from Nov 2024 to Nov 2025, Summit reported recurring net losses and softening RevPAR in 2025 after a stronger 2024, when Adjusted FFO per share rose to $0.96. 2025 results highlighted RevPAR pressure and lower Adjusted FFO, partly offset by capital recycling, debt refinancings and a delayed draw term loan to address 2026 convertible notes. This new Q4/FY 2025 release continues the themes of weaker operating metrics but active balance sheet and portfolio management.

Historical Comparison

+0.3% avg move · Over the last 5 earnings releases, average next-day move was 0.27%. Today’s -1.65% reaction to Q4/FY...

earnings

+0.3%

Average Historical Move earnings

Over the last 5 earnings releases, average next-day move was 0.27%. Today’s -1.65% reaction to Q4/FY 2025 results is somewhat larger but still within a modest range.

Earnings since late 2024 show a shift from improving metrics and higher Adjusted FFO in 2024 toward 2025 headwinds: recurring net losses, RevPAR softness and margin pressure, partly offset by capital recycling, share repurchases and term loan refinancings that push out debt maturities.

Market Pulse Summary

The stock is up +6.3% following this news. A strong positive reaction aligns with the company’s emph...

Analysis

The stock is up +6.3% following this news. A strong positive reaction aligns with the company’s emphasis on balance sheet strength and capital recycling despite weaker 2025 metrics. Earnings history shows modest average moves of 0.27% around prior releases, so any outsized gain would stand out versus typical trading. Investors would likely weigh ongoing RevPAR pressure and lower Adjusted FFO against reduced near-term debt risk, including no maturities until 2028 and recent refinancing of the $287.5 million convertible notes.

Key Terms

revpar, adr, ebitdare, ffo, +4 more

8 terms

revpar financial

"Demand across our portfolio stabilized in the fourth quarter, with RevPAR growth improving..."

RevPAR, or revenue per available room, is a measure used in the hotel industry to show how much money a hotel earns from each of its rooms over a certain period. It helps investors understand how well a hotel is performing financially, similar to how a store's sales per square foot reveal its profitability. Higher RevPAR indicates better use of resources and stronger financial health.

adr financial

"Same store ADR decreased 1.0 percent to $162.69..."

An American Depositary Receipt (ADR) is a financial certificate that lets investors buy shares of a foreign company through U.S. stock markets, similar to buying a local wrapper that represents the underlying foreign shares. ADRs matter because they make investing in overseas companies easier and more liquid by trading in U.S. dollars and under U.S. market rules, while still carrying currency, regulatory, and country-specific risks that can affect share value.

ebitdare financial

"Adjusted EBITDAre decreased to $39.7 million from $42.1 million..."

EBITDARE is a financial measure that shows a company's earnings before accounting for interest, taxes, depreciation, amortization, and restructuring costs. It helps investors understand how well a business is performing by focusing on its core operations, ignoring one-time or non-operational expenses. Think of it as checking a company's true earning power, similar to assessing a car’s performance by its engine without considering external factors like fuel costs or repairs.

ffo financial

"Funds from operations ("FFO"), FFO per diluted share and unit..."

Funds from operations (FFO) is a performance metric used mainly for real estate companies that measures the cash generated by their core rental and property-management activities, while removing accounting items such as building depreciation and one-time gains or losses from property sales. Investors rely on FFO to assess a real estate firm's ability to pay and sustain dividends and fund growth—similar to checking how much actual rent a landlord collects each month rather than paper profits.

affo financial

"Adjusted FFO ("AFFO"), and AFFO per diluted share and unit..."

AFFO (Adjusted Funds from Operations) is a measure of how much cash a real estate company or investment trust generates from its core operations after subtracting routine upkeep, leasing costs and other recurring expenses. Investors use it as a rough proxy for the cash available to pay dividends or reinvest, like checking how much money remains in your household budget after paying regular bills to see what you can spend or save.

capitalization rate financial

"combined sales price of ~$200 million at a blended capitalization rate of approximately 4.6 percent..."

The capitalization rate is a percentage that helps investors estimate how much money a property or investment might generate relative to its value. It’s similar to a return rate, showing how quickly an investment could pay for itself over time. This rate helps compare different investments and assess their potential profitability.

interest rate swap financial

"entered into a $125 million interest rate swap to fix one-month term SOFR at 3.31%..."

An interest rate swap is a financial agreement where two parties exchange interest payments on a set amount of money over time. Typically, one side pays a fixed interest rate, while the other pays a variable rate that can change with market conditions. This helps investors manage or reduce their exposure to interest rate fluctuations, much like locking in a mortgage rate to avoid future cost increases.

term sofr financial

"to fix one-month term SOFR at 3.31% until December 2027."

Term SOFR is a benchmark interest rate that reflects the cost of borrowing money over a specific period, based on actual transactions in the financial markets. It is used by lenders and borrowers to set the interest rates on loans and financial contracts, helping to ensure rates are fair and transparent. For investors, understanding term SOFR helps gauge borrowing costs and the overall direction of interest rates in the economy.

AI-generated analysis. Not financial advice.

Accretive Capital Recycling Continues with the Sale of the Hilton Garden Inn Longview

Refinance of Convertible Notes Complete Utilizing Delayed Draw Term Loan

No Debt Maturities Until 2028

AUSTIN, Texas, Feb. 25, 2026 /PRNewswire/ -- Summit Hotel Properties, Inc. (NYSE: INN) (the "Company"), today announced results for the three and twelve months ended December 31, 2025.

"Demand across our portfolio stabilized in the fourth quarter, with RevPAR growth improving 240 basis points sequentially, despite continued headwinds created by lower international inbound travel and reduced government demand, which was exacerbated in the fourth quarter by the prolonged government shutdown. Our teams continue to execute effectively in a complex operating environment, highlighted by our ability to drive market share gains and manage expenses to optimize profitability. Looking ahead, we are optimistic fundamentals will strengthen in 2026, supported by strong special event demand – including World Cup matches in six of our markets – continued growth in corporate transient and group demand, and easing government travel comparisons," said Jonathan P. Stanner, President and Chief Executive Officer.

"Our capital recycling program continued in the fourth quarter with the sale of two non-core hotels, and we subsequently completed the sale of an additional non-core hotel in the first quarter of 2026. These asset sales – including two through our joint venture with GIC – generated gross proceeds of over $51 million and eliminated approximately $13 million of required near-term capital expenditures. Since 2023, we have sold approximately $200 million of assets at a blended capitalization rate of less than 5%, while preserving nearly $60 million that would have been required for near-term renovations. Our balance sheet remains in a position of strength, supported by ample liquidity and no debt maturities until 2028," continued Mr. Stanner.

Fourth Quarter 2025 Summary

• Net Loss: Net loss attributable to common stockholders was $6.0 million, or $0.06 per diluted share, compared to net income of $0.7 million, or $0.01 per diluted share, for the fourth quarter of 2024.
  
  
• Same Store RevPAR: Same store RevPAR decreased 1.6 percent to $115.34 compared to the fourth quarter of 2024. Same store ADR decreased 1.0 percent to $162.69, and same store occupancy decreased 0.6 percent to 70.9 percent.
  
  
• Pro forma RevPAR: Pro forma RevPAR decreased 1.8 percent to $115.58 compared to the fourth quarter of 2024. Pro forma ADR decreased 1.1 percent to $162.66 compared to the same period in 2024, and pro forma occupancy decreased 0.7 percent to 71.1 percent.
  
  
• Same Store Hotel EBITDA⁽¹⁾: Same store hotel EBITDA decreased to $53.5 million from $57.3 million in the same period in 2024.
  
  
• Pro Forma Hotel EBITDA⁽¹⁾: Pro forma hotel EBITDA decreased to $55.3 million from $59.7 million in the same period in 2024.
  
  
• Adjusted EBITDAre⁽¹⁾: Adjusted EBITDAre decreased to $39.7 million from $42.1 million in the fourth quarter of 2024.
  
  
• Adjusted FFO⁽¹⁾: Adjusted FFO decreased to $22.3 million, or $0.18 per diluted share, compared to $25.2 million, or $0.20 per diluted share, in the fourth quarter of 2024.

Full Year 2025 Summary

• Net Loss: Net loss attributable to common stockholders was $23.6 million, or $0.22 per diluted share, compared to net income of $25.1 million, or $0.22 per diluted share, in the same period of 2024.
  
  
• Same Store RevPAR: Same store RevPAR decreased 1.8 percent to $121.73 compared to the same period of 2024. Same store ADR decreased 1.7 percent to $165.22, and same store occupancy remained unchanged at 73.7 percent.
  
  
• Pro forma RevPAR: Pro forma RevPAR decreased 2.2 percent to $121.85 compared to the same period of 2024. Pro forma ADR decreased 1.8 percent to $165.28, and pro forma occupancy decreased 0.4 percent to 73.7 percent.
  
  
• Same Store Hotel EBITDA⁽¹⁾: Same store hotel EBITDA decreased to $234.7 million from $253.4 million.
  
  
• Pro Forma Hotel EBITDA⁽¹⁾: Pro forma hotel EBITDA decreased to $241.6 million from $261.7 million.
  
  
• Adjusted EBITDAre⁽¹⁾: Adjusted EBITDAre decreased to $174.8 million from $192.2 million in the same period of 2024.
  
  
• Adjusted FFO⁽¹⁾: Adjusted FFO decreased to $103.6 million, or $0.85 per diluted share, compared to $119.2 million, or $0.96 per diluted share, in the same period of 2024.

The Company's results for the three and twelve months ended December 31, 2025 and 2024 are as follows (in thousands, except per share amounts and metrics):

	For the Three Months Ended December 31,				For the Twelve Months Ended December 31,
	2025		2024		2025		2024
Net (loss) income attributable to common stockholders	$   (5,971)		$          680		$ (23,568)		$    25,141
Net (loss) income per diluted share	$     (0.06)		$         0.01		$     (0.22)		$         0.22
Total revenues	$  174,960		$  172,931		$  729,472		$  731,783
EBITDAre (1)	$    48,550		$    51,499		$  214,215		$  236,198
Adjusted EBITDAre (1)	$    39,658		$    42,131		$  174,847		$  192,192
FFO (1)	$    18,849		$    31,603		$    85,220		$  115,160
Adjusted FFO (1)	$    22,330		$    25,230		$  103,649		$  119,206
FFO per diluted share and unit (1)	$         0.16		$         0.25		$         0.70		$         0.93
Adjusted FFO per diluted share and unit (1)	$         0.18		$         0.20		$         0.85		$         0.96
Pro Forma(2)
RevPAR	$    115.58		$    117.70		$    121.85		$    124.60
RevPAR Growth	(1.8) %				(2.2) %
Hotel EBITDA	$    55,253		$    59,709		$  241,641		$  261,698
Hotel EBITDA Margin	31.7 %		34.1 %		33.4 %		35.7 %
Hotel EBITDA Margin Change	(239) bps				(222) bps
Same Store(3)
RevPAR	$    115.34		$    117.18		$    121.73		$    124.01
RevPAR Growth	(1.6) %				(1.8) %
Hotel EBITDA	$    53,466		$    57,295		$  234,691		$  253,376
Hotel EBITDA Margin	31.6 %		33.7 %		33.4 %		35.6 %
Hotel EBITDA Margin Change	(216) bps				(223) 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 95 hotels owned as of December 31, 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 93 hotels owned as of January 1, 2024 and at all times during the three and twelve months ended December 31, 2025, and 2024.

Transaction Activity

In February 2026, the Company completed the sale of the 122-guestroom Hilton Garden Inn Longview, Texas, which was owned by the Company's joint venture with GIC, for $12.3 million. The sales price for the transaction represented a 6.7 percent capitalization rate based on the estimated net operating income for the trailing twelve months ended December 31, 2025, and after consideration of approximately $2.6 million of foregone near-term required capital expenditures. Pro rata net proceeds from the transaction of $2.4 million were used to repay debt, enhance liquidity and for other general corporate purposes. RevPAR for the hotel was $88 in 2025, which is an approximate 28 percent discount to the current pro forma portfolio.

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 transactions 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. Pro rata net proceeds from the transactions of $24.0 million, which generated 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 trailing twelve months ended September 2025 for the sold hotels was $89, which is an approximate 27 percent discount to the current pro forma portfolio.

Since 2023, the Company and its affiliates have sold 13 hotels for a combined sales price of ~$200 million at a blended capitalization rate of approximately 4.6 percent, inclusive of an estimated $59.9 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 $86, which is an approximate 30 percent discount to the current pro forma portfolio.

Capital Markets Activity

Repayment of Convertible Notes
On February 17, 2026, the Company drew on its $275.0 million Delayed Draw Term Loan and its Corporate Revolver, to fully repay the $287.5 million Convertible Notes outstanding balance.

Interest Rate Swaps
In November 2025, the Company entered into a $125 million interest rate swap to fix one-month term SOFR at 3.31% until December 2027. The interest rate swap became effective on December 31, 2025, replacing the 2.92% $125 million interest rate swap that matured on the same date, and has a termination date of December 31, 2027.

Balance Sheet Summary

On a pro rata basis as of December 31, 2025, the Company had the following outstanding indebtedness and liquidity available:

• Outstanding debt of $1.1 billion with a weighted average interest rate of 4.48 percent. After giving effect to interest rate derivative agreements, $826.8 million, or 77 percent, of our outstanding debt had a fixed interest rate, and $248.8 million, or 23 percent, had a variable interest rate.
  
  
• Unrestricted cash and cash equivalents of $30.1 million.

Common and Preferred Dividend Declaration

On January 22, 2026, 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 7.7 percent, based on the closing price of shares of the common stock on February 24, 2026.

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 February 27, 2026, to holders of record as of February 13, 2026.

2026 Outlook

The Company is providing its outlook for the full-year 2026 based on 94 lodging assets owned as of January 1, 2026, excluding the recently sold Hilton Garden Inn Longview, Texas. The three hotels sold since the beginning of 2025 contributed $3.0 million of Consolidated EBITDA and $1.6 million of Adjusted EBITDAre during the calendar year 2025. There are no additional acquisitions, dispositions, or capital markets activities assumed in the Company's full year 2026 outlook.

		FYE 2026 Outlook
		Low		High
Pro Forma RevPAR Growth (1)		0.00 %		3.00 %
Adjusted EBITDAre		$  167,000		$  181,000
Adjusted FFO		$  89,000		$  103,500
Adjusted FFO per share of Common Stock and Common Units		$      0.73		$      0.85
Capital Expenditures, Pro Rata		$  55,000		$  65,000

(1)	All pro forma information includes operating and financial results for 94 lodging assets owned as of February 25, 2026 and excludes the financial results of hotels sold by the Company after January 1, 2025. Pro forma and non-GAAP financial measures are unaudited.

Fourth Quarter 2025 Earnings Conference Call

The Company will conduct its quarterly conference call on February 26, 2026, at 10:00 AM ET.

1. To access the conference call, please pre-register using this link. Registrants will receive a confirmation with dial-in details.
   
   
2. 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 May 1, 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 February 25, 2026, the Company's portfolio consisted of 94 assets, 52 of which are wholly owned, with a total of 14,226 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, 2025, 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)
		December 31, 2025		December 31, 2024
ASSETS
Investments in lodging property, net		$                 2,640,367		$                 2,746,765
Investment in lodging property under development		—		7,617
Assets held for sale, net		11,967		1,225
Cash and cash equivalents		36,110		40,637
Restricted cash		5,102		7,721
Right-of-use assets, net		32,028		33,309
Trade receivables, net		17,347		18,625
Prepaid expenses and other		7,104		9,580
Deferred charges, net		10,051		6,460
Other assets		15,954		24,291
Total assets		$                 2,776,030		$                 2,896,230
LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY
Liabilities:
Debt, net of debt issuance costs		$                 1,394,014		$                 1,396,710
Lease liabilities, net		24,091		24,871
Accounts payable		7,537		7,450
Accrued expenses and other		76,417		82,153
Total liabilities		1,502,059		1,511,184
Redeemable non-controlling interests		50,219		50,219
Total stockholders' equity		862,155		909,545
Non-controlling interests		361,597		425,282
Total equity		1,223,752		1,334,827
Total liabilities, redeemable non-controlling interests and equity		$                 2,776,030		$                 2,896,230

 

Summit Hotel Properties, Inc. Consolidated Statements of Operations (In thousands, except per share amounts)
		For the Three Months Ended December 31,				For the Twelve Months Ended December 31,
		2025		2024		2025		2024
		(Unaudited)
Revenues:
Room		$   153,142		$   152,849		$   643,795		$   650,713
Food and beverage		11,011		10,691		43,213		40,865
Other		10,807		9,391		42,464		40,205
Total revenues		174,960		172,931		729,472		731,783
Expenses:
Room		37,185		35,487		151,441		146,790
Food and beverage		8,337		7,834		32,933		30,964
Other lodging property operating expenses		56,842		54,348		231,282		224,409
Property taxes, insurance and other		13,568		13,294		54,691		54,116
Management fees		3,712		3,807		15,760		15,866
Depreciation and amortization		37,487		36,471		149,610		146,436
Corporate general and administrative		8,120		7,403		32,816		31,891
Transaction costs		—		—		—		10
Loss on impairment and write-down of assets		1,833		6,723		1,833		6,723
Total expenses		167,084		165,367		670,366		657,205
Gain on disposal of assets, net		6,715		473		6,579		28,912
Operating income		14,591		8,037		65,685		103,490
Other income (expense):
Interest expense		(19,432)		(19,792)		(80,692)		(82,632)
Interest income		342		433		1,178		1,906
Gain on extinguishment of debt		—		—		—		3,000
Other income, net		1,184		571		2,994		4,384
Total other expense, net		(17,906)		(18,788)		(76,520)		(73,342)
(Loss) income from continuing operations before income taxes		(3,315)		(10,751)		(10,835)		30,148
Income tax benefit (expense)		738		11,667		(842)		8,743
Net (loss) income		(2,577)		916		(11,677)		38,891
Less - Loss attributable to non-controlling interests		(1,231)		(4,389)		(6,610)		(4,751)
Net (loss) income attributable to Summit Hotel Properties, Inc. before preferred dividends		(1,346)		5,305		(5,067)		43,642
Less - Distributions to and accretion of redeemable non-controlling  interests		(656)		(656)		(2,626)		(2,626)
Less - Preferred dividends		(3,969)		(3,969)		(15,875)		(15,875)
Net (loss) income attributable to common stockholders		$      (5,971)		$           680		$    (23,568)		$     25,141
(Loss) income per common share:
Basic		$        (0.06)		$          0.01		$        (0.22)		$          0.23
Diluted		$        (0.06)		$          0.01		$        (0.22)		$          0.22
Weighted-average common shares outstanding:
Basic		105,903		106,033		106,850		105,927
Diluted		105,903		107,027		106,850		132,365

 

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 December 31,				For the Twelve Months Ended December 31,
		2025		2024		2025		2024
Net (loss) income		$      (2,577)		$           916		$    (11,677)		$     38,891
Preferred dividends		(3,969)		(3,969)		(15,875)		(15,875)
Distributions to and accretion of redeemable non-controlling interests		(656)		(656)		(2,626)		(2,626)
Loss related to non-controlling interests in consolidated joint ventures		670		4,488		3,721		8,499
Net (loss) income applicable to common shares and Common Units		(6,532)		779		(26,457)		28,889
Real estate-related depreciation		36,922		35,903		147,343		142,493
Loss on impairment and write-down of assets		1,833		6,723		1,833		6,723
Gain on disposal of assets and other dispositions, net		(6,715)		(473)		(6,579)		(28,912)
FFO adjustments related to non-controlling interests in consolidated joint ventures		(6,659)		(11,329)		(30,920)		(34,033)
FFO applicable to common shares and Common Units		18,849		31,603		85,220		115,160
Amortization of deferred financing costs		1,605		1,702		6,884		6,582
Amortization of franchise fees		173		177		703		671
Amortization of intangible assets, net		260		266		1,047		2,786
Equity-based compensation		2,039		1,795		8,793		8,132
Debt transaction costs		124		—		462		647
Gain on extinguishment of debt		—		—		—		(3,000)
Non-cash interest income (1)		—		—		—		(400)
Non-cash lease expense, net		131		132		505		464
Casualty losses, net		379		814		1,573		177
Deferred tax (benefit) expense		(967)		765		(331)		762
Reversal of valuation allowance on deferred tax assets		—		(12,061)		—		(12,061)
Other		68		(222)		953		754
AFFO adjustments related to non-controlling interests in consolidated joint ventures		(331)		259		(2,160)		(1,468)
AFFO applicable to common shares and Common Units		$     22,330		$     25,230		$   103,649		$   119,206
FFO per share of common share/Common Unit		$          0.16		$          0.25		$          0.70		$          0.93
AFFO per common share/Common Unit		$          0.18		$          0.20		$          0.85		$          0.96
Weighted-average diluted common shares/Common Units		120,785		124,502		121,981		124,313

(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.

 

Summit Hotel Properties, Inc. Reconciliation of Weighted Average Diluted Common Shares (Unaudited) (In thousands)
		For the Three Months Ended December 31,				For the Twelve Months Ended December 31,
		2025		2024		2025		2024
Weighted average common shares outstanding - diluted		105,903		107,027		106,850		132,365
Adjusted for:
Non-GAAP adjustment for restricted stock awards (1)		1,873		1,532		1,864		1,780
Non-GAAP adjustment for dilutive effects of Common Units (2)		13,009		15,943		13,267		15,946
Non-GAAP adjustment for dilutive effect of shares of common stock issuable upon conversion of convertible debt (3)		—		—		—		(25,778)
Non-GAAP weighted diluted share of common stock and Common Units (3)		120,785		124,502		121,981		124,313

(1)	Adjustment reflects the difference between the total weighted-average unvested restricted time-based shares outstanding as of the reporting date and the weighted-average restricted time-based shares computed for diluted earnings per share under the treasury stock method in accordance with GAAP, plus the difference between the estimated total weighted average unvested restricted performance-based shares expected to vest based on achievement of the performance measures as if the vesting date were the reporting date and the estimated weighted-average unvested restricted performance-based shares computed for diluted earnings per share under the treasury stock method in accordance with GAAP.
(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.
(3)	The weighted-average shares of Common Stock and Common Units used to calculate FFO and AFFO per share of Common Stock and Common Unit for the three and twelve months ended December 31, 2025 and 2024 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 December 31,				For the Twelve Months Ended December 31,
		2025		2024		2025		2024
Net (loss) income		$      (2,577)		$           916		$    (11,677)		$     38,891
Depreciation and amortization		37,487		36,471		149,610		146,436
Interest expense		19,432		19,792		80,692		82,632
Interest income on cash deposits		(172)		(263)		(506)		(829)
Income tax (benefit) expense		(738)		(11,667)		842		(8,743)
EBITDA		53,432		45,249		218,961		258,387
Loss on impairment and write-down of assets		1,833		6,723		1,833		6,723
Gain on disposal of assets and other dispositions, net		(6,715)		(473)		(6,579)		(28,912)
EBITDAre		48,550		51,499		214,215		236,198
Amortization of key money liabilities		(130)		(124)		(517)		(486)
Equity-based compensation		2,039		1,795		8,793		8,132
Debt transaction costs		124		—		462		647
Gain on extinguishment of debt		—		—		—		(3,000)
Non-cash interest income (1)		—		—		—		(400)
Non-cash lease expense, net		131		132		505		464
Casualty losses, net		379		814		1,573		177
Other		68		(222)		953		754
Loss related to non-controlling interests in consolidated joint ventures		670		4,488		3,721		8,499
Adjustments related to non-controlling interests in consolidated joint ventures		(12,173)		(16,251)		(54,858)		(58,793)
Adjusted EBITDAre		$     39,658		$     42,131		$   174,847		$   192,192

(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 December 31,				For the Twelve Months Ended December 31,
Pro Forma Operating Data: (1)		2025		2024		2025		2024
Pro forma room revenue		$  152,560		$  155,111		$  637,589		$  653,263
Pro forma other hotel operations revenue		21,756		20,035		84,840		80,423
Pro forma total revenues		174,316		175,146		722,429		733,686
Pro forma total hotel operating expenses		119,063		115,437		480,788		471,988
Pro forma hotel EBITDA		$  55,253		$  59,709		$  241,641		$  261,698
Pro forma hotel EBITDA Margin		31.7 %		34.1 %		33.4 %		35.7 %
Reconciliations of Non-GAAP financial measures to comparable GAAP financial measures
Revenue:
Total revenues		$  174,960		$  172,931		$  729,472		$  731,783
Total revenues - acquisitions		—		4,586		—		21,843
Total revenues - dispositions		(644)		(2,371)		(7,043)		(19,940)
Pro forma total revenues (1)		174,316		175,146		722,429		733,686
Hotel Operating Expenses:
Hotel operating expenses		$  119,644		$  114,770		$  486,107		$  472,145
Hotel operating expenses - acquisitions		—		2,261		—		13,609
Hotel operating expenses - dispositions		(581)		(1,594)		(5,319)		(13,766)
Pro forma hotel operating expense (1)		119,063		115,437		480,788		471,988
Hotel EBITDA:
Operating income		14,591		8,037		65,685		103,490
Gain on disposal of assets and other dispositions, net		(6,715)		(473)		(6,579)		(28,912)
Loss on impairment and write-down of assets		1,833		6,723		1,833		6,723
Transaction costs		—		—		—		10
Corporate general and administrative		8,120		7,403		32,816		31,891
Depreciation and amortization		37,487		36,471		149,610		146,436
Hotel EBITDA		55,316		58,161		243,365		259,638
Hotel EBITDA - acquisitions (2)		(1,787)		(89)		(6,950)		(88)
Hotel EBITDA - dispositions (3)		(63)		(777)		(1,724)		(6,174)
Same Store hotel EBITDA		53,466		57,295		234,691		253,376
Hotel EBITDA - acquisitions		1,787		2,414		6,950		8,322
Pro forma hotel EBITDA (1)		$  55,253		$  59,709		$  241,641		$  261,698

(1)	Unaudited pro forma information includes operating results for 95 hotels owned as of December 31, 2025, as if all such hotels had been owned by the Company since January 1, 2024. For hotels acquired by the Company after January 1, 2024 (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, 2024, to December 31, 2025. 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. For any hotels sold by the Company after January 1, 2024 (the "Disposed Hotels"), the Company excludes the financial results of each of the Disposed Hotels from January 1, 2024 to the date the Disposed Hotels were sold by the Company in determining pro forma total revenues and pro forma hotel operating expenses. 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.
(2)	For any hotels acquired by the Company after January 1, 2024, 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 December 31, 2025 (the "Acquisition Period") in determining same-store hotel EBITDA.
(3)	For hotels sold by the Company between January 1, 2024, and December 31, 2025, the Company has excluded the financial results of each of the Disposed Hotels for the period beginning on January 1, 2024, and ending on the date the Disposed Hotels were sold by the Company (the "Disposition Period") in determining same-store hotel EBITDA.

 

Summit Hotel Properties, Inc. Pro Forma Hotel Operating Data (Unaudited) (In thousands, except operating statistics)
		2025								Year Ended December 31, 2025
Pro Forma Operating Data: (1)		Q1		Q2		Q3		Q4
Pro forma room revenue		$       162,261		$       168,533		$       154,235		$       152,560		$       637,589
Pro forma other hotel operations revenue		20,512		22,043		20,529		21,756		84,840
Pro forma total revenues		182,773		190,576		174,764		174,316		722,429
Pro forma total hotel operating expenses		117,461		122,904		121,360		119,063		480,788
Pro forma hotel EBITDA		$         65,312		$         67,672		$         53,404		$         55,253		$       241,641
Pro forma hotel EBITDA Margin		35.7 %		35.5 %		30.6 %		31.7 %		33.4 %
Pro Forma Statistics: (1)
Rooms sold		934,026		1,013,670		971,921		937,936		3,857,553
Rooms available		1,289,250		1,303,668		1,319,924		1,319,924		5,232,766
Occupancy		72.4 %		77.8 %		73.6 %		71.1 %		73.7 %
ADR		$         173.72		$         166.26		$         158.69		$         162.66		$         165.28
RevPAR		$         125.86		$         129.28		$         116.85		$         115.58		$         121.85
Actual Statistics:
Rooms sold		946,105		1,029,583		987,833		941,803		3,905,324
Rooms available		1,309,950		1,324,598		1,341,084		1,325,524		5,301,156
Occupancy		72.2 %		77.7 %		73.7 %		71.1 %		73.7 %
ADR		$         173.06		$         165.70		$         158.25		$         162.60		$         164.85
RevPAR		$         124.99		$         128.79		$         116.57		$         115.53		$         121.44
Reconciliations of Non-GAAP financial measures to comparable GAAP financial measures
Revenue:
Total revenues		$       184,478		$       192,917		$       177,117		$       174,960		$       729,472
Total revenues - dispositions		(1,705)		(2,341)		(2,353)		(644)		(7,043)
Pro forma total revenues (1)		182,773		190,576		174,764		174,316		722,429
Hotel Operating Expenses:
Hotel operating expenses		118,851		124,614		122,998		119,644		486,107
Hotel operating expenses - dispositions		(1,390)		(1,710)		(1,638)		(581)		(5,319)
Pro forma hotel operating expenses (1)		117,461		122,904		121,360		119,063		480,788
Hotel EBITDA:
Operating income		19,827		22,684		8,583		14,591		65,685
(Gain) loss on disposal of assets, net		(1)		80		57		(6,715)		(6,579)
Loss on impairment and write-down of assets		—		—		—		1,833		1,833
Corporate general and administrative		8,571		8,280		7,845		8,120		32,816
Depreciation and amortization		37,230		37,259		37,634		37,487		149,610
Hotel EBITDA		65,627		68,303		54,119		55,316		243,365
Hotel EBITDA - acquisitions (2)		(428)		(2,610)		(2,125)		(1,787)		(6,950)
Hotel EBITDA - dispositions (3)		(315)		(631)		(715)		(63)		(1,724)
Same store hotel EBITDA		64,884		65,062		51,279		53,466		234,691
Hotel EBITDA - acquisitions		428		2,610		2,125		1,787		6,950
Pro forma hotel EBITDA (1)		$         65,312		$         67,672		$         53,404		$         55,253		$       241,641

(1)	Unaudited pro forma information includes operating results for 95 hotels owned as of December 31, 2025 as if all such hotels had been owned by the Company since January 1, 2024. For Acquired Hotels, the Company has included in the pro forma information the financial results of each of the hotels acquired for the period from January 1, 2024, to December 31, 2025. The financial results for the hotels acquired include information provided by the third-party owner of such hotel prior to purchase by the Company and have not been audited or reviewed by our auditors or adjusted by us. For any hotels sold by the Company after January 1, 2024, the Company excludes the financial results of each of those hotels from January 1, 2024 to the date the hotels were sold by the Company in determining pro forma total revenues and pro forma hotel operating expenses. 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.
(2)	For any hotels acquired by the Company after January 1, 2024, 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 December 31, 2025 in determining same-store hotel EBITDA.
(3)	For hotels sold by the Company between January 1, 2024, and December 31, 2025, the Company has excluded the financial results of each of the hotels for the period beginning on January 1, 2024, and ending on the date the hotels were sold by the Company in determining same-store hotel EBITDA.

 

Summit Hotel Properties, Inc. Pro Forma and Same Store Data (Unaudited)
		For the Three Months Ended December 31,				For the Twelve Months Ended December 31,
		2025		2024		2025		2024
Pro Forma (1)
Rooms sold		937,936		943,261		3,857,553		3,879,986
Rooms available		1,319,924		1,317,900		5,232,766		5,242,687
Occupancy		71.1 %		71.6 %		73.7 %		74.0 %
ADR		$  162.66		$  164.44		$  165.28		$  168.37
RevPAR		$  115.58		$  117.70		$  121.85		$  124.60
Occupancy change		(0.7) %				(0.4) %
ADR change		(1.1) %				(1.8) %
RevPAR change		(1.8) %				(2.2) %
		For the Three Months Ended December 31,				For the Twelve Months Ended December 31,
		2025		2024		2025		2024
Same-Store (2)
Rooms sold		909,719		913,774		3,747,896		3,758,718
Rooms available		1,283,216		1,281,192		5,087,131		5,096,653
Occupancy		70.9 %		71.3 %		73.7 %		73.7 %
ADR		$  162.69		$  164.30		$  165.22		$  168.15
RevPAR		$  115.34		$  117.18		$  121.73		$  124.01
Occupancy change		(0.6) %				(0.1) %
ADR change		(1.0) %				(1.7) %
RevPAR change		(1.6) %				(1.8) %

(1)	Unaudited pro forma information includes operating results for 95 hotels owned as of December 31, 2025, as if each hotel had been owned by the Company since January 1, 2024. 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 93 hotels owned by the Company as of January 1, 2024, and at all times during the three and twelve months ended December 31, 2025, and 2024.

 

Summit Hotel Properties, Inc. Reconciliation of Net Loss to Non-GAAP Measures - EBITDA for Financial Outlook
(In thousands)
(Unaudited)
		FYE 2026 Outlook
		Low		High
Net loss		$    (29,700)		$    (11,800)
Depreciation and amortization		147,900		147,900
Interest expense		84,800		84,300
Interest income		(400)		(400)
Income tax expense		2,800		2,800
EBITDA and EBITDAre		205,400		222,800
Equity-based compensation		9,200		9,200
Debt transaction costs		100		100
Other non-cash items, net		500		500
Loss related to non-controlling interests in consolidated joint ventures		3,700		300
Adjustments related to non-controlling interests in consolidated joint ventures		(51,900)		(51,900)
Adjusted EBITDAre		$   167,000		$   181,000

 

Summit Hotel Properties, Inc. Reconciliation of Net Loss to Non-GAAP Measures - Funds From Operations for Financial Outlook
(In thousands except per share and unit)
(Unaudited)
		FYE 2026 Outlook
		Low		High
Net loss		$    (29,700)		$    (11,800)
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		3,700		300
Net loss applicable to common shares and Common Units		(44,500)		(30,000)
Real estate-related depreciation		145,700		145,700
FFO Adjustments related to non-controlling interests in consolidated joint ventures		(30,700)		(30,700)
FFO applicable to common shares and Common Units		70,500		85,000
Amortization of deferred financing costs		7,300		7,300
Amortization of franchise fees		700		700
Equity-based compensation		9,200		9,200
Debt transaction costs		100		100
Other non-cash items, net		3,200		3,200
AFFO Adjustments related to non-controlling interests in consolidated joint ventures		(2,000)		(2,000)
AFFO applicable to common shares and Common Units		$     89,000		$   103,500
Weighted average diluted common shares/Common Units for FFO and AFFO		121,970		121,970
FFO per common share and Common Unit		$          0.58		$          0.70
AFFO per common share/Common Unit		$          0.73		$          0.85

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 on-going 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 on-going 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.

FAQ

What drove Summit Hotel Properties (INN) to report a full-year 2025 net loss?

The company reported a full-year net loss of $23.6M. According to the company, weaker RevPAR and margin pressures across the portfolio reduced EBITDA and adjusted FFO versus 2024, contributing to the reported loss despite ongoing asset sales and cost management.

How did Summit Hotel Properties (INN) address its convertible notes in February 2026?

Summit repaid the $287.5M outstanding convertible notes using its $275M delayed draw term loan and revolver. According to the company, this action improved capital structure certainty and removed near-term convertible debt maturities.

What is Summit Hotel Properties' (INN) 2026 outlook for adjusted FFO and RevPAR?

The company provided 2026 guidance of adjusted FFO between $89M and $103.5M and pro forma RevPAR growth of 0% to 3%. According to the company, the outlook assumes 94 assets owned as of Jan 1, 2026, with no further transactions assumed.

How material were Summit Hotel Properties' (INN) asset sales since 2023 and their impact?

Since 2023, Summit sold 13 hotels for ~$200M at a blended cap rate of ~4.6%, preserving roughly $59.9M of near-term renovation needs. According to the company, proceeds were used to repay debt and enhance liquidity.

What dividends did Summit Hotel Properties (INN) declare in early 2026 and when are they payable?

The board declared a quarterly common dividend of $0.08 per share and various preferred dividends; payment is set for Feb 27, 2026. According to the company, the record date was Feb 13, 2026, and the common dividend implies a 7.7% annualized yield at the Feb 24 closing price.