Increased 2026 Outlook as Sequential RevPAR Improvement Results in Positive First Quarter RevPAR Growth
Accretive Capital Recycling Continues with Agreement to Sell the Courtyard and Residence Inn Dallas (Arlington South)
AUSTIN, Texas, April 30, 2026 /PRNewswire/ -- Summit Hotel Properties, Inc. (NYSE:INN) (the "Company"), today announced results for the three months ended March 31, 2026.
"Operating fundamentals improved meaningfully in the first quarter as positive RevPAR growth in the quarter exceeded our expectations by over 200 basis points. Encouragingly, we experienced sequential improvements in demand within the quarter culminating with March RevPAR growth of over 4%. These positive trends have continued into the second quarter as rate-driven revenue growth has been broad based across markets and segments of our portfolio. Our outlook for the remainder of the year is increasingly positive as we approach what is expected to be a robust summer of travel demand, highlighted by a record setting special events calendar and current operating trends that support an increase to our full year 2026 guidance ranges," said Jonathan Stanner, President and Chief Executive Officer.
"We also continue to successfully allocate capital as we entered into an agreement to sell two wholly-owned assets for $19 million at an implied capitalization rate of 5.0 percent, inclusive of foregone capital investment needs, and repurchased an additional 1.4 million shares during the quarter. Since the inception of our share repurchase program, we have repurchased approximately 5 million shares (approximately 4% of total share outstanding) at an average price of $4.26 per share. Our balance sheet remains well positioned with ample liquidity and no debt maturities until 2028," continued Mr. Stanner.
First Quarter 2026 Summary
Net Loss: Net loss attributable to common stockholders was $10.4 million, or $0.10 per diluted share, compared to net loss of $4.7 million, or $0.04 per diluted share, for the first quarter of 2025.
Pro forma RevPAR: Pro forma RevPAR increased 0.2 percent to $126.57 compared to the first quarter of 2025. Pro forma ADR increased 1.5 percent to $176.85 compared to the same period in 2025, and pro forma occupancy decreased 1.3 percent to 71.6 percent.
Pro Forma Hotel EBITDA(1): Pro forma hotel EBITDA decreased to $63.4 million from $65.1 million in the same period in 2025.
Adjusted EBITDAre(1): Adjusted EBITDAre decreased to $44.2 million from $45.0 million in the first quarter of 2025.
Adjusted FFO(1): Adjusted FFO decreased to $25.5 million, or $0.21 per diluted share, compared to $27.4 million, or $0.22 per diluted share, in the first quarter of 2025.
The Company's results for the three months ended March 31, 2026 and 2025 are as follows (in thousands, except per share amounts and metrics):
For the Three Months Ended March 31,
2026
2025
Net loss attributable to common stockholders
$ (10,441)
$ (4,684)
Net loss per diluted share
$ (0.10)
$ (0.04)
Total revenues
$ 185,053
$ 184,478
EBITDAre (1)
$ 55,766
$ 58,449
Adjusted EBITDAre (1)
$ 44,192
$ 45,007
FFO (1)
$ 20,590
$ 23,196
Adjusted FFO (1)
$ 25,525
$ 27,359
FFO per diluted share and unit (1)
$ 0.17
$ 0.19
Adjusted FFO per diluted share and unit (1)
$ 0.21
$ 0.22
Pro Forma (2) and Same Store (3)
RevPAR
$ 126.57
$ 126.28
RevPAR Growth
0.2 %
Hotel EBITDA
$ 63,374
$ 65,105
Hotel EBITDA Margin
34.4 %
35.8 %
Hotel EBITDA Margin Change
(146) bps
(1)
See tables later in this press release for a discussion and reconciliation of Net loss attributable to common stockholders 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 94 hotels owned as of March 31, 2026.
(3)
All same store information includes operating and financial results for 94 hotels owned as of January 1, 2025 and at all times during the three months ended March 31, 2026, and 2025.
Transaction Activity
In April 2026, we entered into a purchase and sale agreement to sell the wholly-owned 103-guestroom Courtyard by Marriott, Dallas (Arlington South), TX and the 96-guestroom Residence Inn, Dallas (Arlington South), TX for a combined selling price of $19.0 million. The sales price for the transaction represents a 5.0 percent capitalization rate based on the net operating income for the trailing twelve months ended March 31, 2026, and after consideration of foregone near-term required capital expenditures. The transaction is expected to close in the third quarter of 2026.
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 6.8 percent capitalization rate based on the net operating income for the trailing twelve months ended January 31, 2026, and after consideration of foregone near-term required capital expenditures.
Since 2023, the Company and its affiliates have sold, or are under contract to sell, 15 hotels for a combined sales price of approximately $218 million at a blended capitalization rate of approximately 4.6 percent, inclusive of an estimated $68 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 NotesOn February 17, 2026, the Company fully repaid its $287.5 million 1.5% Convertible Notes utilizing its $275.0 million Delayed Draw Term Loan and Corporate Revolver.
Stock RepurchasesDuring the first quarter, the Company repurchased 1.4 million common shares under its share repurchase program for an aggregate purchase price of $6.0 million, or a weighted average price of approximately $4.17 per share. As of March 31, 2026, approximately $28.6 million remained available for repurchase under this program.
Since the inception of our share repurchase program in 2025, we have repurchased approximately 5.0 million shares (approximately 4% of total share outstanding) at an average price of $4.26 per share.
Balance Sheet Summary
On a pro rata basis as of March 31, 2026, the Company had the following outstanding indebtedness:
Outstanding debt of $1.1 billion with a weighted average interest rate of 5.53 percent. After giving effect to interest rate derivative agreements, $539.2 million, or 50 percent, of our outstanding debt had a fixed interest rate, and $545.0 million, or 50 percent, had a variable interest rate.
Unrestricted cash and cash equivalents of $34.8 million.
Common and Preferred Dividend Declaration
On April 23, 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 6.4 percent, based on the closing price of shares of the common stock on April 29, 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 May 29, 2026, to holders of record as of May 15, 2026.
2026 Outlook
The Company's updated outlook for the full year 2026 is based on the 94 lodging assets owned as of March 31, 2026, including the Courtyard by Marriott and Residence Inn Dallas (Arlington South) for which we have entered into an agreement to sell the two hotels. The sale is expected to close in the third quarter and will result in approximately $500,000 of foregone Hotel EBITDA from the closing date through the end of the year, which is not reflected in the updated guidance ranges. Based on first quarter actual results and recent operating trends, the Company is increasing the low end and implied midpoint of its guidance ranges. There are no additional acquisitions, dispositions, share repurchases, or capital markets activities assumed in the Company's full year 2026 outlook.
FYE 2026 Outlook
Low
High
Variance to Prior Midpoint
% Change to Prior Midpoint
Pro Forma RevPAR Growth (1)
0.50 %
3.00 %
0.25 %
— %
Adjusted EBITDAre
$ 170,000
$ 181,000
$ 1,500
0.9 %
Adjusted FFO
$ 90,000
$ 102,000
$ (250)
(0.3) %
Adjusted FFO per share of Common Stock and Common Units
$ 0.75
$ 0.85
$ 0.01
1.3 %
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 March 31, 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.
First Quarter 2026 Earnings Conference Call
The Company will conduct its quarterly conference call on May 1, 2026, at 12:00 PM ET.
To access the conference call, please pre-register using this link. Registrants will receive a confirmation with dial-in details.
A live webcast of the conference call can be accessed using this link. A replay of the webcast will be available in the Investors section of the Company's website, www.shpreit.com, until July 30, 2026.
Supplemental Disclosures
In conjunction with this press release, the Company has furnished a financial supplement with additional disclosures on its website. Visit www.shpreit.com for more information. The Company has no obligation to update any of the information provided to conform to actual results or changes in portfolio, capital structure, or future expectations.
About Summit Hotel Properties
Summit Hotel Properties, Inc. is a publicly traded real estate investment trust focused on owning premium-branded lodging facilities with efficient operating models primarily in the upscale segment of the lodging industry. As of April 30, 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
Forward-Looking Statements
This press release contains statements that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "may," "will," "should," "potential," "intend," "expect," "seek," "anticipate," "estimate," "approximately," "believe," "could," "project," "predict," "forecast," "continue," "plan," "likely," "would" or other similar words or expressions. Forward-looking statements are based on certain assumptions and can include future expectations, future plans and strategies, financial and operating projections, or other forward-looking information. Examples of forward-looking statements include the following: the Company's ability to realize growth from the deployment of renovation capital; projections of the Company's revenues and expenses, capital expenditures or other financial items; descriptions of the Company's plans or objectives for future operations, acquisitions, dispositions, financings, redemptions or services; forecasts of the Company's future financial performance and potential increases in average daily rate, occupancy, RevPAR, room supply and demand, EBITDAre, Adjusted EBITDAre, FFO and AFFO; the Company's outlook with respect to pro forma RevPAR, pro forma RevPAR growth, RevPAR, RevPAR growth, AFFO, AFFO per diluted share and unit and renovation capital deployed; and descriptions of assumptions underlying or relating to any of the foregoing expectations regarding the timing of their occurrence. These forward-looking statements are subject to various risks and uncertainties, not all of which are known to the Company and many of which are beyond the Company's control, which could cause actual results to differ materially from such statements. These risks and uncertainties include, but are not limited to, the state of the U.S. economy, supply and demand in the hotel industry, and other factors as are described in greater detail in the Company's filings with the Securities and Exchange Commission ("SEC"). Unless legally required, the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.
For information about the Company's business and financial results, please refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of the Company's Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC, and its quarterly and other periodic filings with the SEC. The Company undertakes no duty to update the statements in this release to conform the statements to actual results or changes in the Company's expectations.
Summit Hotel Properties, Inc.
Consolidated Balance Sheets
(In thousands)
March 31, 2026
December 31, 2025
(Unaudited)
ASSETS
Investments in lodging property, net
$ 2,592,231
$ 2,640,367
Assets held for sale, net
18,405
11,967
Cash and cash equivalents
44,773
36,110
Restricted cash
5,661
5,102
Right-of-use assets, net
31,563
32,028
Trade receivables, net
23,528
17,347
Prepaid expenses and other
14,610
7,104
Deferred charges, net
5,585
10,051
Other assets
18,208
15,954
Total assets
$ 2,754,564
$ 2,776,030
LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY
Liabilities:
Debt, net of debt issuance costs
$ 1,396,385
$ 1,394,014
Lease liabilities, net
23,749
24,091
Accounts payable
7,128
7,537
Accrued expenses and other
77,682
76,417
Total liabilities
1,504,944
1,502,059
Redeemable non-controlling interests
50,219
50,219
Total stockholders' equity
840,406
862,155
Non-controlling interests
358,995
361,597
Total equity
1,199,401
1,223,752
Total liabilities, redeemable non-controlling interests and equity
$ 2,754,564
$ 2,776,030
Summit Hotel Properties, Inc.
Consolidated Statements of Operations
(In thousands, except per share amounts)
For the Three Months Ended March 31,
2026
2025
(Unaudited)
Revenues:
Room
$ 162,564
$ 163,731
Food and beverage
11,460
10,990
Other
11,029
9,757
Total revenues
185,053
184,478
Expenses:
Room
36,347
36,132
Food and beverage
8,520
7,991
Other lodging property operating expenses
58,650
56,922
Property taxes, insurance and other
13,884
13,311
Management fees
4,221
4,495
Depreciation and amortization
36,774
37,230
Corporate general and administrative
8,845
8,571
Loss on write-down of assets
3,641
—
Total expenses
170,882
164,652
(Loss) gain on disposal of assets, net
(40)
1
Operating income
14,131
