Earnings slip as Summit Hotel (NYSE: INN) posts 2025 loss and trims FFO
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Summit Hotel Properties reported weaker fourth-quarter and full-year 2025 results and issued a cautious 2026 outlook. Q4 net loss attributable to common stockholders was $6.0 million, or $0.06 per diluted share, versus net income of $0.7 million a year earlier, as same-store RevPAR fell 1.6% to $115.34 and hotel EBITDA margins compressed more than 200 basis points on both a pro forma and same-store basis.
For 2025, the company posted a net loss of $23.6 million, or $0.22 per diluted share, compared with net income of $25.1 million in 2024. Same-store RevPAR declined 1.8% to $121.73, Adjusted EBITDAre decreased to $174.8 million from $192.2 million, and Adjusted FFO fell to $103.6 million, or $0.85 per diluted share and unit, from $119.2 million, or $0.96.
Management highlighted capital recycling and balance sheet moves, including selling three non-core hotels for a combined $51.3 million at low- to mid-single-digit capitalization rates and using a $275.0 million delayed draw term loan and the revolver to repay $287.5 million of convertible notes, leaving no debt maturities until 2028 and pro rata debt of $1.1 billion at a 4.48% effective rate, with 77% fixed via swaps. The portfolio stood at 94 assets as of February 25, 2026, and the company declared a quarterly common dividend of $0.08 per share while guiding 2026 pro forma RevPAR growth between 0% and 3%, Adjusted EBITDAre of $167.0–$181.0 million, and Adjusted FFO of $89.0–$103.5 million, or $0.73–$0.85 per share and unit.
Positive
- None.
Negative
- Profitability declined despite modest RevPAR erosion, with 2025 Adjusted EBITDAre falling from $192.2 million to $174.8 million and Adjusted FFO per share and unit dropping from $0.96 to $0.85, alongside more than 200 basis points of hotel EBITDA margin compression.
Insights
2025 earnings softened with margin pressure, but leverage and maturities look manageable after refinancing.
Summit Hotel Properties saw modest RevPAR declines in 2025, yet profitability fell more sharply. Same-store RevPAR slipped 1.8% to
Management continued an active capital recycling strategy, selling three non-core hotels for about
Balance sheet management is notable. The company used its
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): February 25, 2026
(Exact name of registrant as specified in its charter)
| (State or other jurisdiction | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||
| of incorporation or organization) | ||||||||
(Address of Principal Executive Offices) (Zip Code)
(512 ) 538-2300
(Registrant’s telephone number, including area code)
Not applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter)
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On February 25, 2026, Summit Hotel Properties, Inc. (the “Company”) issued a press release announcing the consolidated operating results of the Company and its subsidiaries for the fourth quarter and year ended December 31, 2025. The press release referred to supplemental financial information for the fourth quarter and full year 2025 that is available on the Company’s website at www.shpreit.com. A copy of the press release and the supplemental financial information are furnished as Exhibit 99.1 and Exhibit 99.2, respectively, to this Report.
The information in this Item, including the exhibits, is provided under Item 2.02 of Form 8-K and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or otherwise subject to the liabilities of that section. Furthermore, the information in this Item, including the exhibits, shall not be deemed to be incorporated by reference into the filings of the registrant under the Securities Act of 1933 regardless of any general incorporation language in such filings.
Item 9.01. Financial Statements and Exhibits.
| (d) | Exhibits | |||||||
99.1 | Press release issued February 25, 2026. | |||||||
99.2 | Fourth Quarter and Full Year 2025 Supplemental Data | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| SUMMIT HOTEL PROPERTIES, INC. | |||||||||||
| Date: February 25, 2026 | By: | /s/ Christopher R. Eng | |||||||||
| Christopher R. Eng Executive Vice President, General Counsel, Chief Risk Officer and Secretary | |||||||||||
 | ||||||||
| 13215 Bee Cave Pkwy, Suite B-300, Austin, TX 78738 | ||||||||
| Telephone: 512-538-2300 Fax: 512-538-2333 | ||||||||
| www.shpreit.com | ||||||||
NEWS RELEASE
SUMMIT HOTEL PROPERTIES REPORTS FOURTH QUARTER AND FULL YEAR 2025 RESULTS
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, February 25, 2026 - - - 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.
| 1 | P a g e | |||||||
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.
| 2 | P a g e | |||||||
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.
| 3 | P a g e | |||||||
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.
| 4 | P a g e | |||||||
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.
| 5 | P a g e | |||||||
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.
Contact:
Kevin Milota
SVP - Corporate Finance
Summit Hotel Properties, Inc.
(737) 205-5787
| 6 | P a g e | |||||||
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.
| 7 | P a g e | |||||||
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 | ||||||||||
| 8 | P a g e | |||||||
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 | ||||||||||||||||||||||
| 9 | P a g e | |||||||
| 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.
| 10 | P a g e | |||||||
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.
| 11 | P a g e | |||||||
| 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.
| 12 | P a g e | |||||||
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.
| 13 | P a g e | |||||||
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.
| 14 | P a g e | |||||||
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.
| 15 | P a g e | |||||||
| 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 | ||||||||||
| 16 | P a g e | |||||||
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.
| 17 | P a g e | |||||||
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).
| 18 | P a g e | |||||||
1 Earnings Release Supplement Fourth Quarter 2025 (UNAUDITED) February 25, 2026
2 Table of Contents Section I Section II Section III Section IV Section V Forward-Looking Statements and Non-GAAP Financial Measure Disclosures Corporate Financial Schedules Operating & Property-Level Schedules Capitalization and Debt Schedules Asset Listing
3 Forward-Looking Statements We make forward-looking statements in this presentation that are subject to risks and uncertainties. These forward-looking statements include information about possible or assumed future results of our business, financial condition, liquidity, results of operations, plans, and objectives. When we use the words “believe,” “expect,” “anticipate,” “estimate,” “plan,” “continue,” “intend,” “should,” “may,” or similar expressions, we intend to identify forward-looking statements. Statements regarding the following subjects, among others, may be forward-looking by their nature: • our ability to increase our dividend per share of common stock; • the state of the U.S. economy generally or in specific geographic regions in which we operate, and the effect of general economic conditions on the lodging industry and our business in particular; • market trends in our industry, interest rates, real estate values and the capital markets; • our business and investment strategy and, particularly, our ability to identify and complete hotel acquisitions and dispositions; • our projected operating results; • actions and initiatives of the U.S. government and changes to U.S. government policies and the execution and impact of such actions, initiatives and policies; • our ability to manage our relationships with our management companies and franchisors; • our ability to maintain our existing and future financing arrangements; • changes in the value of our properties; • the impact of and changes in governmental regulations, tax law and rates, accounting guidance and similar matters; • our ability to satisfy the requirements for qualification as a REIT under the U.S. Tax Code; • our ability to repay or refinance our indebtedness as it matures or becomes callable by lenders; • the availability of qualified personnel; • our ability to make distributions to our stockholders in the future; • the general volatility of the market price of our securities; and • the degree and nature of our competition. Forward-looking statements are based on our beliefs, assumptions and expectations of our future performance, taking into account information currently available to us. You should not place undue reliance on these forward-looking statements. These beliefs, assumptions and expectations can change as a result of many possible events or factors, not all of which are known to us. These factors are discussed under “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2025, and in other documents we have filed with the Securities and Exchange Commission. If a change occurs, our business, financial condition, liquidity and results of operations may vary materially from those expressed in our forward-looking statements. Any forward-looking statement is effective only as of the date on which it is made. New risks and uncertainties arise over time, and it is not possible for us to predict those events or how they may affect us. Except as required by law we are not obligated to, and do not intend to, publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Additionally, this presentation contains certain unaudited historical and pro forma information and metrics which are based or calculated from historical data that is maintained or produced by Summit Hotel Properties, Inc. or third parties. This presentation contain statistics and other data that may have been obtained from, or compiled from, information made available by third-parties.
4 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") and Adjusted EBITDAre (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). FFO and 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, transaction costs, debt transaction costs, premiums on redemption of preferred shares, losses from net casualties, non-cash interest income and non-cash income tax related adjustments to our deferred tax asset. 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, and certain transaction costs related to lodging property acquisition activities and debt, 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 depreciation and amortization expense on assets at our corporate offices, which is de minimis. 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 Earnings Release Supplement, FFO is based on our computation of FFO and not the computation of Nareit- defined FFO unless otherwise noted.
5 Non-GAAP Financial Measures (cont.) EBITDAre and Adjusted EBITDAre 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 meet 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.
6 Table of Contents Section I Section II Section III Section IV Section V Forward-Looking Statements and Non-GAAP Financial Measure Disclosures Corporate Financial Schedules Operating & Property-Level Schedules Capitalization and Debt Schedules Asset Listing
7 Summary Financial Results (Unaudited) (Amounts in thousands, except per share metrics and statistics) 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 presentation 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 presentation. 2. Unless stated otherwise in this presentation, all pro forma information includes operating and financial results for 95 lodging properties 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 measurement 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.
8 Summary Pro Forma Operating Results (Unaudited) (Amounts in thousands, except operating statistics) 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 Company has included in the pro forma information the financial results of each of the hotels for the period from January 1, 2024, to December 31, 2025. The financial results for the hotels 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. 2024 2025 Year Ended Pro Forma Operating Data: (1) Q1 Q2 Q3 Q4 December 31, 2025 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
9 Adjusted EBITDAre Reconciliation (Unaudited) (Amounts 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 — — — (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
10 Adjusted FFO Reconciliation (Unaudited) (Amounts in thousands, except per share metrics) 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 — — — (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
11 Reconciliation to Adjusted EBITDAre - By Ownership Interest (Unaudited) (Amounts in thousands, except statistics) 1. GIC Joint Venture is 51% owned by Summit while Other Joint Ventures are 90% owned by Summit. Summit GIC Other GIC JV Other JVs Wholly-Owned Joint Venture (1) Joint Ventures (1) Combined Pro Rata Adj Pro Rata Adj Pro Rata For The Three Months Ended December 31, 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Number Rooms Sold 547,308 550,312 371,393 363,501 23,102 21,199 941,803 935,012 Number of Rooms Available 778,483 788,362 519,533 499,199 27,508 25,392 1,325,524 1,312,953 Occupancy 70.3 % 69.8 % 71.5 % 72.8 % 84.0 % 83.5 % 71.1 % 71.2 % Average Daily Rate $ 162.63 $ 163.95 $ 159.09 $ 160.05 $ 218.50 $ 209.72 $ 162.60 $ 163.47 Room Revenue PAR $ 114.34 $ 114.45 $ 113.73 $ 116.54 $ 183.50 $ 175.09 $ 115.53 $ 116.42 Room Revenue $ 89,009 $ 90,225 $ 59,085 $ 58,178 $ 5,048 $ 4,446 $ 153,142 $ 152,849 Other revenue 11,040 9,800 8,084 7,412 2,694 2,870 21,818 20,082 Total Revenue $ 100,049 $ 100,025 $ 67,169 $ 65,590 $ 7,742 $ 7,316 $ 174,960 $ 172,931 Hotel EBITDA $ 29,209 $ 30,357 $ 23,640 $ 25,271 $ 2,467 $ 2,533 $ 55,316 $ 58,161 % margin 29.2 % 30.3 % 35.2 % 38.5 % 31.9 % 34.6 % 31.6 % 33.6 % Net (loss) income $ (1,479) $ 8,518 $ (1,128) $ (8,123) $ 30 $ 521 $ (2,577) $ 916 $ 673 $ 4,540 $ (3) $ (52) $ (1,907) $ 5,404 Depreciation and amortization 20,022 18,790 16,010 16,586 1,455 1,095 37,487 36,471 (7,845) (8,127) (146) (110) 29,496 28,234 Interest expense 7,774 7,625 10,679 11,243 979 924 19,432 19,792 (5,233) (5,509) (98) (92) 14,101 14,191 Interest income (149) (227) (23) (36) — — (172) (263) 11 18 — — (161) (245) Income tax benefit (733) (9,684) (5) (1,983) — — (738) (11,667) 2 972 — — (736) (10,695) EBITDA 25,435 25,022 25,533 17,687 2,464 2,540 53,432 45,249 (12,392) (8,106) (247) (254) 40,793 36,889 Loss on impairment and write-down of assets — — 1,833 6,723 — — 1,833 6,723 (898) (3,294) — — 935 3,429 Gain on disposal of assets and other dispositions, net (2,572) (467) (4,143) (6) — — (6,715) (473) 2,030 3 — — (4,685) (470) EBITDAre 22,863 24,555 23,223 24,404 2,464 2,540 48,550 51,499 (11,260) (11,397) (247) (254) 37,043 39,848 Amortization of key money liabilities (60) (55) (52) (51) (18) (18) (130) (124) 25 25 2 2 (103) (97) Equity-based compensation 2,039 1,795 — — — — 2,039 1,795 — — — — 2,039 1,795 Debt transaction costs 121 — 3 — — — 124 — (1) — — — 123 — Non-cash lease expense, net 124 126 7 6 — — 131 132 (3) (3) — — 128 129 Casualty losses, net 316 538 56 276 7 — 379 814 (27) (135) (1) — 351 679 Other 141 (222) — — (73) — 68 (222) 2 (1) 7 — 77 (223) Adjusted EBITDAre $ 25,544 $ 26,737 $ 23,237 $ 24,635 $ 2,380 $ 2,522 $ 51,161 $ 53,894 $ (11,264) $ (11,511) $ (239) $ (252) $ 39,658 $ 42,131
12 Reconciliation to Adjusted EBITDAre - By Ownership Interest (Unaudited) (Amounts in thousands, except statistics) 1. Non-cash interest income relates to the amortization of the discount on certain notes receivable. The discount on these notes receivable was recorded at inception of the related loans based on the estimated value of the embedded purchase options in the notes receivable. 2. GIC Joint Venture is 51% owned by Summit while Other Joint Ventures are 90% owned by Summit. Summit GIC Other GIC JV Other JVs Wholly-Owned Joint Venture (2) Joint Ventures (2) Combined Pro Rata Adj Pro Rata Adj Pro Rata For The Twelve Months Ended December 31, 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Number Rooms Sold 2,276,160 2,320,897 1,540,063 1,481,801 89,101 82,676 3,905,324 3,885,374 Number of Rooms Available 3,111,421 3,201,236 2,084,671 1,980,389 105,064 100,753 5,301,156 5,282,378 Occupancy 73.2 % 72.5 % 73.9 % 74.8 % 84.8 % 82.1 % 73.7 % 73.6 % Average Daily Rate $ 164.42 $ 169.81 $ 162.40 $ 161.37 $ 218.23 $ 211.39 $ 164.85 $ 167.48 Room Revenue PAR $ 120.28 $ 123.11 $ 119.98 $ 120.74 $ 185.07 $ 173.46 $ 121.44 $ 123.19 Room Revenue $ 374,237 $ 394,117 $ 250,113 $ 239,119 $ 19,445 $ 17,477 $ 643,795 $ 650,713 Other revenue 43,022 40,660 31,254 29,194 11,401 11,216 85,677 81,070 Total Revenue $ 417,259 $ 434,777 $ 281,367 $ 268,313 $ 30,846 $ 28,693 $ 729,472 $ 731,783 Hotel EBITDA $ 128,248 $ 145,766 $ 105,175 $ 105,055 $ 9,942 $ 8,817 $ 243,365 $ 259,638 % margin 30.7 % 33.5 % 37.4 % 39.2 % 32.2 % 30.7 % 33.4 % 35.5 % Net (loss) income $ (4,695) $ 54,513 $ (7,591) $ (16,548) $ 609 $ 926 $ (11,677) $ 38,891 $ 3,782 $ 8,592 $ (61) $ (93) $ (7,956) $ 47,390 Depreciation and amortization 78,567 76,722 65,905 65,360 5,138 4,354 149,610 146,436 (32,293) (32,026) (514) (435) 116,803 113,975 Interest expense 31,302 31,815 45,219 46,880 4,171 3,937 80,692 82,632 (22,157) (22,971) (417) (394) 58,118 59,267 Interest income (443) (768) (63) (61) — — (506) (829) 31 30 — — (475) (799) Income tax expense (benefit) 155 (8,852) 687 109 — — 842 (8,743) (337) (53) — — 505 (8,796) EBITDA 104,886 153,430 104,157 95,740 9,918 9,217 218,961 258,387 (50,974) (46,428) (992) (922) 166,995 211,037 Loss on impairment and write-down of assets — — 1,833 6,723 — — 1,833 6,723 (898) (3,294) — — 935 3,429 (Gain) loss on disposal of assets and other dispositions, net (2,534) (28,738) (4,045) (193) — 19 (6,579) (28,912) 1,982 95 — (2) (4,597) (28,819) EBITDAre 102,352 124,692 101,945 102,270 9,918 9,236 214,215 236,198 (49,890) (49,627) (992) (924) 163,333 185,647 Amortization of key money liabilities (239) (208) (206) (206) (72) (72) (517) (486) 101 101 7 7 (409) (378) Equity-based compensation 8,793 8,132 — — — — 8,793 8,132 — — — — 8,793 8,132 Debt transaction costs 122 627 326 20 14 — 462 647 (160) (10) (1) — 301 637 Gain on extinguishment of debt — (3,000) — — — — — (3,000) — — — — — (3,000) Non-cash interest income (1) — (400) — — — — — (400) — — — — — (400) Non-cash lease expense, net 478 474 27 (10) — — 505 464 (13) 5 — — 492 469 Casualty losses (gains), net 1,197 1,280 347 (707) 29 (396) 1,573 177 (170) 346 (3) 40 1,400 563 Other 782 284 — 470 171 — 953 754 1 (232) (17) — 937 522 Adjusted EBITDAre $ 113,485 $ 131,881 $ 102,439 $ 101,837 $ 10,060 $ 8,768 $ 225,984 $ 242,486 $ (50,131) $ (49,417) $ (1,006) $ (877) $ 174,847 $ 192,192
13 Reconciliation to Adjusted FFO - By Ownership Interest (Unaudited) (Amounts in thousands, except per share metrics) 1. GIC Joint Venture is 51% owned by Summit while Other Joint Ventures are 90% owned by Summit. 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 GIC Other GIC JV Other JVs Wholly-Owned Joint Venture (1) Joint Ventures (1) Combined Pro Rata Adj Pro Rata Adj Pro Rata For The Three Months Ended December 31, 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Net (loss) income $ (1,479) $ 8,518 $ (1,128) $ (8,123) $ 30 $ 521 $ (2,577) $ 916 $ 673 $ 4,540 $ (3) $ (52) $ (1,907) $ 5,404 Preferred dividends (3,969) (3,969) — — — — (3,969) (3,969) — — — — (3,969) (3,969) Distributions to and accretion of redeemable non-controlling interests (656) (656) — — — — (656) (656) — — — — (656) (656) Net (loss) income applicable to common shares and Common Units (6,104) 3,893 (1,128) (8,123) 30 521 (7,202) (3,709) 673 4,540 (3) (52) (6,532) 779 Real estate-related depreciation 19,879 18,643 15,606 16,184 1,437 1,076 36,922 35,903 (7,647) (7,930) (144) (108) 29,131 27,865 Loss on impairment and write-down of assets — — 1,833 6,723 — — 1,833 6,723 (898) (3,294) — — 935 3,429 Gain on disposal of assets and other dispositions, net (2,572) (467) (4,143) (6) — — (6,715) (473) 2,030 3 — — (4,685) (470) FFO applicable to common shares and Common Units 11,203 22,069 12,168 14,778 1,467 1,597 24,838 38,444 (5,842) (6,681) (147) (160) 18,849 31,603 Amortization of deferred financing costs 1,066 1,170 465 517 74 15 1,605 1,702 (228) (253) (7) (2) 1,370 1,447 Amortization of franchise fees 91 96 82 81 — — 173 177 (40) (40) — — 133 137 Amortization of intangible assets (10) (4) 270 270 — — 260 266 (132) (132) — — 128 134 Equity based compensation 2,039 1,795 — — — — 2,039 1,795 — — — — 2,039 1,795 Debt transaction costs 121 — 3 — — — 124 — (1) — — — 123 — Non-cash lease expense, net 124 126 7 6 — — 131 132 (3) (3) — — 128 129 Casualty losses, net 316 538 56 276 7 — 379 814 (27) (135) (1) — 351 679 Deferred tax (benefit) expense (761) 734 (206) 31 — — (967) 765 101 (15) — — (866) 750 Reversal of deferred tax valuation allowance — (10,347) — (1,714) — — — (12,061) — 840 — — — (11,221) Other 141 (222) — — (73) — 68 (222) — (1) 7 — 75 (223) AFFO applicable to common shares and common units (2) $ 14,330 $ 15,955 $ 12,845 $ 14,245 $ 1,475 $ 1,612 $ 28,650 $ 31,812 $ (6,172) $ (6,420) $ (148) $ (162) $ 22,330 $ 25,230 FFO per common share/Common Unit $ 0.16 $ 0.25 AFFO per common share/Common Unit $ 0.18 $ 0.20 Weighted-average diluted common shares/Common Units (2) 120,785 124,502
14 Reconciliation to Adjusted FFO - By Ownership Interest (Unaudited) (Amounts in thousands, except per share metrics) 1. GIC Joint Venture is 51% owned by Summit while Other Joint Ventures are 90% owned by Summit. 2. Non-cash interest income relates to the amortization of the discount on certain notes receivable. The discount on these notes receivable was recorded at inception of the related loans based on the estimated value of the embedded purchase options in the notes receivable. 3. 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 GIC Other GIC JV Other JVs Wholly-Owned Joint Venture (1) Joint Ventures (1) Combined Pro Rata Adj Pro Rata Adj Pro Rata For The Twelve Months Ended December 31, 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 2024 Net (loss) income $ (4,695) $ 54,513 $ (7,591) $ (16,548) $ 609 $ 926 $ (11,677) $ 38,891 $ 3,782 $ 8,592 $ (61) $ (93) $ (7,956) $ 47,390 Preferred dividends (15,875) (15,875) — — — — (15,875) (15,875) — — — — (15,875) (15,875) Distributions to and accretion of redeemable non-controlling interests (2,626) (2,626) — — — — (2,626) (2,626) — — — — (2,626) (2,626) Net (loss) income applicable to common shares and Common Units (23,196) 36,012 (7,591) (16,548) 609 926 (30,178) 20,390 3,782 8,592 (61) (93) (26,457) 28,889 Real estate-related depreciation 77,997 76,163 64,280 62,048 5,066 4,282 147,343 142,493 (31,497) (30,404) (507) (428) 115,339 111,661 Loss on impairment and write-down of assets — — 1,833 6,723 — — 1,833 6,723 (898) (3,294) — — 935 3,429 (Gain) loss on disposal of assets and other dispositions, net (2,534) (28,738) (4,045) (193) — 19 (6,579) (28,912) 1,982 95 — (2) (4,597) (28,819) FFO applicable to common shares and Common Units 52,267 83,437 54,477 52,030 5,675 5,227 112,419 140,694 (26,631) (25,011) (568) (523) 85,220 115,160 Amortization of deferred financing costs 4,296 4,651 2,364 1,871 224 60 6,884 6,582 (1,158) (917) (22) (6) 5,704 5,659 Amortization of franchise fees 364 354 339 317 — — 703 671 (166) (155) — — 537 516 Amortization of intangible assets (34) (3) 1,081 2,789 — — 1,047 2,786 (530) (1,367) — — 517 1,419 Equity based compensation 8,793 8,132 — — — — 8,793 8,132 — — — — 8,793 8,132 Debt transaction costs 122 627 326 20 14 — 462 647 (160) (10) (1) — 301 637 Gain on extinguishment of debt — (3,000) — — — — — (3,000) — — — — — (3,000) Non-Cash Interest Income (2) — (400) — — — — — (400) — — — — — (400) Non-cash lease expense, net 478 474 27 (10) — — 505 464 (13) 5 — — 492 469 Casualty losses (gains), net 1,197 1,280 347 (707) 29 (396) 1,573 177 (170) 346 (3) 40 1,400 563 Deferred tax (benefit) expense (173) 731 (158) 31 — — (331) 762 77 (15) — — (254) 747 Reversal of deferred tax valuation allowance — (10,347) — (1,714) — — — (12,061) — 840 — — — (11,221) Other 782 284 — 470 171 — 953 754 3 (229) (17) — 939 525 AFFO applicable to common shares and common units (3) $ 68,092 $ 86,220 $ 58,803 $ 55,097 $ 6,113 $ 4,891 $ 133,008 $ 146,208 $ (28,748) $ (26,513) $ (611) $ (489) $ 103,649 $ 119,206 FFO per common share/Common Unit $ 0.70 $ 0.93 AFFO per common share/Common Unit $ 0.85 $ 0.96 Weighted-average diluted common shares/Common Units (3) 121,981 124,313
15 Full Year 2026 Outlook (Unaudited) (Amounts in thousands, except per share metrics and statistics) 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. 2. Recent asset sales are contemplated in guidance. The three hotels sold since the beginning of 2025 contributed ~$1.6 million of EBITDA (~0.01 / share in AFFO) in 2025. FYE 2026 Outlook (2) 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
16 Table of Contents Section I Section II Section III Section IV Section V Forward-Looking Statements and Non-GAAP Financial Measure Disclosures Corporate Financial Schedules Operating & Property-Level Schedules Capitalization and Debt Schedules Asset Listing
17 Pro Forma Operating Results - By Ownership Interest (Unaudited) (Amounts in thousands, except statistics) 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 any 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 the date the Acquired Hotels were purchased by the Company (the “Pre-acquisition Period”). The financial results for the Pre-acquisition Period were 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. INN Wholly-Owned (52 Hotels) GIC Joint Venture (40 Hotels) Other Joint Ventures (3 Hotels) Pro Forma (95 Hotels) For The Three Months Ended December 31, 2025 2024 2025 2024 2025 2024 2025 2024 Pro Forma Operating Data (1) Occupancy 70.3 % 69.9 % 71.5 % 73.6 % 84.0 % 83.5 % 71.1 % 71.6 % ADR $ 162.66 $ 164.43 $ 159.16 $ 161.94 $ 218.50 $ 209.72 $ 162.66 $ 164.44 RevPAR $ 114.37 $ 114.86 $ 113.79 $ 119.12 $ 183.50 $ 175.09 $ 115.58 $ 117.70 Occupancy change 0.7 % (2.8) % 0.6 % (0.7) % ADR change (1.1) % (1.7) % 4.2 % (1.1) % RevPAR change (0.4) % (4.5) % 4.8 % (1.8) % Pro forma total revenues $ 99,643 $ 98,673 $ 66,931 $ 69,157 $ 7,742 $ 7,316 $ 174,316 $ 175,146 Pro forma hotel EBITDA $ 29,225 $ 30,066 $ 23,561 $ 27,110 $ 2,467 $ 2,533 $ 55,253 $ 59,709 Pro forma hotel EBITDA Margin 29.3 % 30.5 % 35.2 % 39.2 % 31.9 % 34.6 % 31.7 % 34.1 %
18 Pro Forma Operating Results - By Ownership Interest (Unaudited) (Amounts in thousands, except statistics) 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 any Acquired Hotels, the Company has included in the pro forma information the financial results of each of the Acquired Hotels for the Pre-acquisition Period. The financial results for the Pre-acquisition Period were 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 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. INN Wholly-Owned (52 Hotels) GIC Joint Venture (40 Hotels) Other Joint Ventures (3 Hotels) Pro Forma (95 Hotels) For The Twelve Months Ended December 31, 2025 2024 2025 2024 2025 2024 2025 2024 Pro Forma Operating Data (1) Occupancy 73.3 % 72.8 % 73.8 % 75.5 % 84.8 % 82.1 % 73.7 % 74.0 % ADR $ 164.78 $ 170.04 $ 162.91 $ 163.67 $ 218.23 $ 211.39 $ 165.28 $ 168.37 RevPAR $ 120.74 $ 123.71 $ 120.26 $ 123.56 $ 185.07 $ 173.46 $ 121.85 $ 124.60 Occupancy change 0.7 % (2.2) % 3.3 % (0.4) % ADR change (3.1) % (0.5) % 3.2 % (1.8) % RevPAR change (2.4) % (2.7) % 6.7 % (2.2) % Pro forma total revenues $ 413,926 $ 420,958 $ 277,657 $ 284,035 $ 30,846 $ 28,693 $ 722,429 $ 733,686 Pro forma hotel EBITDA $ 128,153 $ 141,776 $ 103,546 $ 111,105 $ 9,942 $ 8,817 $ 241,641 $ 261,698 Pro forma hotel EBITDA Margin 31.0 % 33.7 % 37.3 % 39.1 % 32.2 % 30.7 % 33.4 % 35.7 %
19 Table of Contents Section I Section II Section III Section IV Section V Forward-Looking Statements and Non-GAAP Financial Measure Disclosures Corporate Financial Schedules Operating & Property-Level Schedules Capitalization and Debt Schedules Asset Listing
20 Capitalization - Total Enterprise Value (Unaudited) (Amounts in thousands, except common share price & dividends) December 31, 2025 September 30, 2025 June 30, 2025 March 31, 2025 December 31, 2024 Common Share Price & Dividends At quarter ended $ 4.87 $ 5.49 $ 5.09 $ 5.41 $ 6.85 High during quarter ended $ 5.79 $ 6.00 $ 5.56 $ 6.96 $ 7.22 Low during quarter ended $ 4.73 $ 4.61 $ 3.57 $ 5.28 $ 5.94 Common dividends per share $ 0.08 $ 0.08 $ 0.08 $ 0.08 $ 0.08 Common Shares & Units Common shares outstanding 108,799 108,803 108,812 112,222 108,436 Common units outstanding 13,009 13,009 13,009 13,009 15,933 Total common shares and units outstanding 121,808 121,812 121,821 125,231 124,369 Capitalization Market value of common equity at quarter end $ 593,205 $ 668,748 $ 620,069 $ 677,500 $ 851,928 Par value of preferred equity - 6.250% Series E 160,000 160,000 160,000 160,000 160,000 Par value of preferred equity - 5.875% Series F 100,000 100,000 100,000 100,000 100,000 Par value of preferred equity - 5.250% Series Z 50,000 50,000 50,000 50,000 50,000 Consolidated total debt 1,404,143 1,433,483 1,434,703 1,427,359 1,408,007 Less: Consolidated unrestricted cash (36,110) (41,135) (39,490) (48,194) (40,637) Consolidated total enterprise value 2,271,238 2,371,096 2,325,282 2,366,665 2,529,298 Noncontrolling interest in consolidated total debt - GIC JV (322,735) (327,311) (325,460) (325,492) (325,579) Noncontrolling interest in consolidated total debt - Other JVs (5,800) (5,800) (5,800) (4,559) (4,606) Noncontrolling interest in consolidated total cash - GIC JV 5,759 7,116 6,140 11,720 7,956 Noncontrolling interest in consolidated total cash - Other JVs 256 239 258 215 218 Pro rata total enterprise value $ 1,948,718 $ 2,045,340 $ 2,000,420 $ 2,048,549 $ 2,207,287
21 Number of Pro Rata Base Interest Fixed/ Fully-Extended Encumbered Principal Non-controlling Principal As of December 31, 2025 Spread Rate Rate Variable Maturity Date Properties Outstanding Interests Outstanding Senior Credit Facility $400 Million Revolver 2.15% 3.69% 5.84% Variable 06/21/2028 n/a $ — $ — $ — $200 Million Term Loan 2.10% 3.92% 6.02% Variable 06/21/2028 n/a 200,000 — 200,000 Total Senior Credit and Term Loan Facility 200,000 — 200,000 Convertible Notes n/a n/a 1.50% Fixed 02/15/2026 n/a 287,500 — 287,500 Term Loans Regions Bank 2024 Term Loan Facility 2.10% 3.82% 5.92% Variable 02/26/2029 n/a 200,000 — 200,000 $275 Million 2025 Delayed Draw Term Loan 2.10% 3.69% 5.79% Variable 03/27/2030 n/a — — — 200,000 — 200,000 687,500 — 687,500 Brickell Joint Venture Mortgage Loan Wells Fargo Bank, N.A. 2.60% 3.87% 6.47% Variable 05/15/2030 2 58,000 (5,800) 52,200 GIC Joint Venture Credit Facility and Term Loans $125 Million Revolver 2.15% 3.92% 6.07% Variable 09/15/2028 n/a 125,000 (61,250) 63,750 $125 Million Term Loan 2.10% 3.92% 6.02% Variable 09/15/2028 n/a 125,000 (61,250) 63,750 Bank of America, N.A. 2025 Term Loan 2.35% 3.92% 6.27% Variable 07/24/2030 n/a 390,730 (191,458) 199,272 Wells Fargo n/a n/a 4.99% Fixed 06/06/2028 1 12,253 (6,004) 6,249 PACE Loan n/a n/a 6.10% Fixed 07/31/2040 n/a 5,660 (2,773) 2,887 Total GIC Joint Venture Credit Facility and Term Loans 1 658,643 (322,735) 335,908 Total Joint Venture Debt 3 716,643 (328,535) 388,108 Total Debt 3 $ 1,404,143 $ (328,535) $ 1,075,608 Debt Schedule - Part I (Unaudited) (Amounts in thousands except for number of properties)
22 Debt Schedule - Part II (Unaudited) (Amounts in thousands) Principal Amount Fixed Debt Variable Debt Effective Interest As of December 31, 2025 Outstanding Outstanding Outstanding Rate Total Debt $ 1,404,143 $ 305,413 $ 1,098,730 5.16 % Non-controlling Interests in Joint Ventures (328,535) (8,777) (319,758) Pro Rata Debt $ 1,075,608 $ 296,636 $ 778,972 4.86 % % of Pro Rata Debt 100 % 28 % 72 % Pro Rata Adjustment for Swaps in Effect — 530,200 (530,200) Pro Rata Debt Including Swaps $ 1,075,608 $ 826,836 $ 248,772 4.48 % % of Pro Rata Debt Including Swaps 100 % 77 % 23 % Notional Effective Maturity Interest Rate Swaps Value Swap Rate Date Date Capital One - 2022 - $100mm $ 100,000 2.6000 % January 31, 2023 January 31, 2027 Regions - 2022 - $100mm 100,000 2.5625 % January 31, 2023 January 31, 2029 Capital One - 2023 - $100mm 100,000 3.3540 % July 1, 2023 January 13, 2026 Wells Fargo - 2023 - $100mm 100,000 3.3540 % July 1, 2023 January 13, 2026 Wells Fargo - 2024 - $100mm 100,000 3.7650 % October 1, 2024 January 13, 2026 Wells Fargo - 2025 - $58mm 58,000 3.5740 % June 2, 2025 May 15, 2028 Bank of America - 2025 - $150mm 150,000 3.2605 % January 13, 2026 January 13, 2028 Fifth-Third Bank - 2025 - $150mm 150,000 3.2650 % January 13, 2026 January 13, 2028 U.S. Bank National Association - 2025 - $125mm 125,000 3.3135 % December 31, 2025 December 31, 2027 Total Swaps $ 983,000 3.2186 %
23 Debt Schedule - Part III (Unaudited) (1) Amounts are in millions ($) and assumes fully-extended maturities for all loans. Reflects pro rata debt totals. (2) Represents the pro-rata maturity of the $400 million GIC Term Loan that was refinanced in July 2025. Pro Rata Debt Maturity Ladder at December 31, 2025 $287.5 $200.0 $127.5 $52.2 $200.0 $199.3 $6.2 $2.9 Convertible Senior Notes $200M Senior Term Loan $200M GIC JV Credit Facility Brickell JV Mortgage Debt $200M Senior Term Loan $400M GIC JV Term Loan Mortgage Debt 2026 2027 2028 2029 2030 2031 + 0 100 200 300 400 500 600 The $275 Million Delayed Draw Term Loan replaced the Convertible Senior Notes in February 2026 $275.0 _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ | | | | | | | | | | | (1) (2)
24 Table of Contents Section I Section II Section III Section IV Section V Forward-Looking Statements and Non-GAAP Financial Measure Disclosures Corporate Financial Schedules Operating & Property-Level Schedules Capitalization and Debt Schedules Asset Listing
25 Asset Listing (Unaudited) Hotels Rooms STR Chain Scale STR Location INN Wholly-Owned (100% Ownership) Hyatt Place - Denver South/Park Meadows 1 127 Upscale Suburban Hyatt Place - Denver Tech Center 1 126 Upscale Suburban Hyatt Place - Scottsdale/Old Town 1 126 Upscale Resort Holiday Inn Express & Suites - San Francisco/Fisherman's Wharf 1 252 Upper Midscale Urban Courtyard - Dallas/Arlington South 1 103 Upscale Suburban Residence Inn - Dallas/Arlington South 1 96 Upscale Suburban Hyatt Place - Orlando/Convention Center 1 151 Upscale Resort Hyatt Place - Orlando/Universal 1 150 Upscale Resort Hyatt Place - Minneapolis/Downtown 1 213 Upscale Urban Springhill Suites - Nashville MetroCenter 1 78 Upscale Urban Courtyard - New Orleans Downtown Near the French Quarter 1 140 Upscale Urban Hyatt Place - Portland Airport/Cascade Station 1 136 Upscale Airport Residence Inn - Portland Airport at Cascade Station 1 124 Upscale Airport Courtyard - New Orleans/Metairie 1 153 Upscale Suburban Staybridge Suites - Denver/Cherry Creek 1 121 Upscale Suburban Hyatt House - Denver Tech Center 1 135 Upscale Suburban Courtyard - Atlanta Downtown 1 150 Upscale Urban Hyatt Place - Garden City 1 122 Upscale Suburban Residence Inn - New Orleans/Metairie 1 120 Upscale Suburban Hilton Garden Inn - Greenville 1 120 Upscale Suburban Fairfield Inn & Suites - Louisville Downtown 1 140 Upper Midscale Urban
26 Asset Listing (Unaudited) Hotels Rooms STR Chain Scale STR Location INN Wholly-Owned (100% Ownership), (cont.) SpringHill Suites - Louisville Downtown 1 198 Upscale Urban SpringHill Suites - Indianapolis Downtown 1 156 Upscale Urban Courtyard - Indianapolis Downtown 1 297 Upscale Urban Hampton Inn & Suites - San Diego/Poway 1 108 Upper Midscale Suburban Hampton Inn & Suites - Camarillo 1 116 Upper Midscale Suburban Hilton Garden Inn - Houston/Galleria Area 1 182 Upscale Urban Doubletree by Hilton San Francisco Airport North Bayfront 1 210 Upscale Airport Hilton Garden Inn - Houston/Energy Corridor 1 190 Upscale Suburban Hampton Inn & Suites - Austin/Downtown/Convention Center 1 209 Upper Midscale Urban Hampton Inn & Suites - Minneapolis/Downtown 1 211 Upper Midscale Urban Residence Inn - Bridgewater/Branchburg 1 101 Upscale Suburban Hyatt House - Across From Universal Orlando Resort 1 168 Upscale Resort Residence Inn - Baltimore/Hunt Valley 1 141 Upscale Suburban Hotel Indigo - Asheville Downtown 1 116 Upper Upscale Urban Courtyard - Atlanta Decatur Downtown/Emory 1 179 Upscale Suburban Courtyard - Nashville Vanderbilt/West End 1 226 Upscale Urban Residence Inn - Atlanta Midtown/Peachtree at 17th 1 160 Upscale Urban Hyatt House - Miami Airport 1 163 Upscale Airport Marriott - Boulder 1 165 Upper Upscale Urban Hyatt Place - Chicago/Downtown-The Loop 1 206 Upscale Urban Hyatt Place - Phoenix/Mesa 1 152 Upscale Suburban Courtyard - Fort Lauderdale Beach 1 261 Upscale Resort
27 Asset Listing (Unaudited) Hotels Rooms STR Chain Scale STR Location INN Wholly-Owned (100% Ownership), (cont.) Courtyard - Charlotte City Center 1 182 Upscale Urban Hampton Inn & Suites - Baltimore Inner Harbor 1 116 Upper Midscale Urban Residence Inn - Baltimore Downtown/Inner Harbor 1 189 Upscale Urban Courtyard - Fort Worth Downtown/Blackstone 1 203 Upscale Urban AC Hotel - Atlanta Downtown 1 255 Upscale Urban Hilton Garden Inn - Waltham 1 148 Upscale Suburban Residence Inn - Cleveland Downtown 1 175 Upscale Urban Courtyard - New Haven at Yale 1 207 Upscale Urban Residence Inn - Boston/Watertown 1 150 Upscale Suburban INN Wholly-Owned (100% Ownership) 52 8,423 (2)
28 Asset Listing (Unaudited) Hotels Rooms STR Chain Scale STR Location GIC Joint Venture (51% Ownership) Courtyard - Scottsdale North 1 153 Upscale Resort Springhill Suites - Scottsdale North 1 121 Upscale Resort Hampton Inn & Suites - Tampa/Ybor City/Downtown 1 138 Upper Midscale Urban Homewood Suites - Aliso Viejo/Laguna Beach 1 129 Upscale Suburban Courtyard - Pittsburgh Downtown 1 183 Upscale Urban Homewood Suites - Tucson/St. Philip's Plaza University 1 122 Upscale Resort Hampton Inn & Suites - Silverthorne 1 88 Upper Midscale Resort Hilton Garden Inn - San Jose / Milpitas 1 161 Upscale Suburban Residence Inn - Portland Downtown / Riverplace 1 258 Upscale Urban Residence Inn - Portland / Hillsboro 1 122 Upscale Suburban Residence Inn - Steamboat Springs 1 110 Upscale Small Metro/Town Embassy Suites - Tucson / Paloma Village 1 120 Upper Upscale Resort Residence Inn - Scottsdale North 1 120 Upscale Resort AC Hotel - Dallas Downtown 1 128 Upscale Urban Residence Inn - Dallas Downtown 1 121 Upscale Urban Hampton Inn & Suites - Dallas Downtown 1 176 Upper Midscale Urban SpringHill Suites - Dallas Downtown 1 148 Upscale Urban Hilton Garden Inn - Grapevine at Silver Lake Crossing 1 152 Upscale Airport Holiday Inn Express & Suites - DFW / Grapevine 1 95 Upper Midscale Airport Courtyard - Dallas DFW Airport / North Grapevine 1 181 Upscale Airport TownePlace Suites - Dallas / Grapevine 1 120 Upper Midscale Airport Hyatt Place - Dallas / Grapevine 1 125 Upscale Airport
29 Asset Listing (Unaudited) (1) The Hilton Garden Inn - Longview, TX was sold during February 2026. Hotels Rooms STR Chain Scale STR Location GIC Joint Venture (51% Ownership) AC Hotel - Dallas / Frisco 1 150 Upscale Suburban Residence Inn - Dallas / Frisco 1 150 Upscale Suburban Canopy Hotel - Dallas / Frisco Station 1 150 Upper Upscale Suburban Residence Inn - Tyler 1 119 Upscale Small Metro/Town Hilton Garden Inn - Longview (1) 1 122 Upscale Small Metro/Town AC Hotel - Houston Downtown 1 195 Upscale Urban Homewood Suites - Midland 1 118 Upscale Suburban Hyatt Place - Lubbock 1 125 Upscale Urban Embassy Suites - Amarillo Downtown 1 226 Upper Upscale Urban AC Hotel - Oklahoma City / Bricktown 1 142 Upscale Urban Hyatt Place - Oklahoma City / Bricktown 1 134 Upscale Urban Holiday Inn Express & Suites - Oklahoma City Downtown / Bricktown 1 124 Upper Midscale Urban SpringHill Suites - New Orleans Downtown / Canal Street 1 74 Upscale Urban TownePlace Suites - New Orleans Downtown / Canal Street 1 105 Upper Midscale Urban Canopy Hotel - New Orleans Downtown 1 176 Upper Upscale Urban The Nordic Lodge - Steamboat Springs 1 45 Independent Small Metro/Town Hampton Inn Boston-Logan Airport 1 250 Upper Midscale Airport Hilton Garden Inn Tysons Corner 1 149 Upscale Urban GIC Joint Venture (51% Ownership) 40 5,625 (2)
30 Asset Listing (Unaudited) (1) Asset listing excludes two parking garages located in Dallas, TX and Frisco, TX. Hotels Rooms STR Chain Scale STR Location Other Joint Ventures (90% Ownership) AC Hotels by Marriott - Miami Brickell 1 156 Upscale Urban Element - Miami Brickell 1 108 Upscale Urban Onera - Fredericksburg 1 35 N/A Small Metro/Town Other Joint Ventures (90% Ownership) 3 299 Pro Forma (1) 95 14,347
31
FAQ
How did Summit Hotel Properties (INN) perform financially in Q4 2025?
Summit Hotel Properties reported a Q4 2025 net loss attributable to common stockholders of $6.0 million, or $0.06 per diluted share. Same-store RevPAR declined 1.6% to $115.34, and Adjusted EBITDAre decreased to $39.7 million from $42.1 million in Q4 2024.
What were Summit Hotel Properties’ full-year 2025 results compared to 2024?
For 2025, Summit Hotel Properties posted a net loss attributable to common stockholders of $23.6 million, or $0.22 per diluted share, versus net income of $25.1 million, or $0.22 per diluted share, in 2024. Adjusted FFO fell to $103.6 million, or $0.85 per diluted share and unit, from $119.2 million, or $0.96.
What 2026 outlook did Summit Hotel Properties (INN) provide?
Summit Hotel Properties guided 2026 pro forma RevPAR growth between 0% and 3%, Adjusted EBITDAre between $167.0 million and $181.0 million, and Adjusted FFO between $89.0 million and $103.5 million. Adjusted FFO per share and unit is projected in a range of $0.73 to $0.85.
How is Summit Hotel Properties managing its balance sheet and debt maturities?
The company drew its $275.0 million delayed draw term loan and revolver to fully repay $287.5 million of convertible notes, resulting in no debt maturities until 2028. On a pro rata basis, it reported $1.1 billion of debt at a 4.48% weighted average interest rate, with 77% effectively fixed via swaps.
What asset sales and capital recycling did Summit Hotel Properties complete?
In October 2025 and February 2026, the company sold three non-core hotels for about $51.3 million at blended capitalization rates in the mid-single digits while avoiding roughly $12.8 million of near-term capital expenditures. Since 2023, Summit has sold 13 hotels for approximately $200 million at a 4.6% blended cap rate.
What dividend did Summit Hotel Properties declare for early 2026?
On January 22, 2026, Summit Hotel Properties declared a quarterly cash dividend of $0.08 per share on its common stock and common operating partnership units. It also declared quarterly dividends on its 6.25% Series E, 5.875% Series F, and 5.25% Series Z preferred securities, payable February 27, 2026.
Filing Exhibits & Attachments
6 documentsPress Releases
Summit Hotel Pptys Inc
NYSE:INN
INN Rankings
INN Latest News
INN Latest SEC Filings
Feb 25, 2026
[POSASR] Summit Hotel Properties, Inc. SEC Filing