Summit Hotel Properties, Inc. · NYSE:INN
Summit Hotel Properties — Q1 2024 Earnings Presentation
31 slides from Summit Hotel Properties's earnings presentation, May 2, 2024
Slide 1: Earnings Release Supplement First Quarter 2024
Earnings Release Supplement First Quarter 2024 (UNAUDITED) May 1, 2024 1
Slide 2: Table of Contents
Table of Contents Section I Forward-Looking Statements and Non-GAAP Financial Measure Disclosures Section II Corporate Financial Schedules Section III Operating & Property-Level Schedules Section IV Capitalization and Debt Schedules Section VI Asset Listing 2
Slide 3: Forward-Looking Statements
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,
Slide 4: Non-GAAP Financial Measures
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
Slide 5: Non-GAAP Financial Measures (cont.)
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 in
Slide 6: Table of Contents
Table of Contents Section I Forward-Looking Statements and Non-GAAP Financial Measure Disclosures Section II Corporate Financial Schedules Section III Operating & Property-Level Schedules Section IV Capitalization and Debt Schedules Section VI Asset Listing 6
Slide 7: Summary Financial Results (Unaudited)
Summary Financial Results (Unaudited) For the Three Months Ended March 31, (Amounts in thousands, except per share metrics and statistics) 2024 2023 Net loss attributable to common stockholders $ (2,116) $ (5,228) Net loss per diluted share $ (0.02) $ (0.05) Total revenues $ 188,142 $ 182,383 EBITDA
Slide 8: Summary Pro Forma Operating Results (Unaudited)
Summary Pro Forma Operating Results (Unaudited) Trailing Twelve (Amounts in thousands, except operating statistics) 2023 2024 Months Ended Pro Forma Operating Data (1) Q2 Q3 Q4 Q1 March 31, 2024 Pro forma room revenue $ 172,120 $ 160,094 $ 155,615 $ 167,073 $ 654,902 Pro forma other hotel operations
Slide 9: Adjusted EBITDAre Reconciliation (Unaudited)
Adjusted EBITDAre Reconciliation (Unaudited) For the Three Months Ended (Amounts in thousands) March 31, 2024 2023 Net income (loss) $ 2,833 $ (1,970) Depreciation and amortization 36,799 36,908 Interest expense 21,582 20,909 Interest income on cash deposits (157) (83) Income tax expense (benefit) 2
Slide 10: Adjusted FFO Reconciliation (Unaudited)
Adjusted FFO Reconciliation (Unaudited) (Amounts in thousands, except per share metrics) For the Three Months Ended March 31, 2024 2023 Net income (loss) $ 2,833 $ (1,970) Preferred dividends (3,970) (3,970) Distributions to and accretion of redeemable non-controlling interests (657) (657) (Income)
Slide 11: Reconciliation to Adjusted EBITDAre - By Ownership Interest
Reconciliation to Adjusted EBITDAre - By Ownership Interest (Unaudited) Q1 2024 Summit GIC Other GIC JV Other JVs (Amounts in thousands, except statistics) Wholly-Owned Joint Venture (1) Joint Ventures (1) Combined Pro Rata Adj Pro Rata Adj Pro Rata 1Q 2024 1Q 2023 1Q 2024 1Q 2023 1Q 2024 1Q 2023 1Q
Slide 12: Reconciliation to Adjusted FFO - By Ownership Interest
Reconciliation to Adjusted FFO - By Ownership Interest (Unaudited) Summit GIC Other GIC JV Other JVs 1Q 2024 Wholly-Owned Joint Venture (1) Joint Ventures (1) Combined Pro Rata Adj Pro Rata Adj Pro Rata (Amounts in thousands, except statistics) 1Q 2024 1Q 2023 1Q 2024 1Q 2023 1Q 2024 1Q 2023 1Q 2024
Slide 13: Full Year 2024 Outlook (Unaudited)
Full Year 2024 Outlook (Unaudited) FYE 2024 Outlook (Amounts in thousands, except per share metrics and statistics) Variance to Prior % Change to Prior Low High Midpoint Midpoint Pro Forma RevPAR Growth (1) 2.00 % 4.00 % —% —% Adjusted EBITDAre $ 188,000 $ 200,000 $ — —% Adjusted FFO $ 111,000 $ 123
Slide 14: Table of Contents
Table of Contents Section I Forward-Looking Statements and Non-GAAP Financial Measure Disclosures Section II Corporate Financial Schedules Section III Operating & Property-Level Schedules Section IV Capitalization and Debt Schedules Section VI Asset Listing 14
Slide 15: Pro Forma Operating Results - By Ownership Interest
Pro Forma Operating Results - By Ownership Interest (Unaudited) INN Wholly-Owned GIC Joint Venture Other Joint Ventures Pro Forma Q1 2024 (56 Hotels) (40 Hotels) (3 Hotels) (99 Hotels) (Amounts in thousands, except statistics) 2024 2023 2024 2023 2024 2023 2024 2023 (1) Pro Forma Operating Data Occu
Slide 16: Summary Pro Forma Operating Results (Unaudited)
Summary Pro Forma Operating Results (Unaudited) Pro Forma (99) Hotels - 2024 (1) Jan Feb Mar Q1 Occupancy 64.3 % 72.5 % 78.6 % 71.8 % ADR $ 164.17 $ 174.61 $ 178.88 $ 173.01 RevPAR $ 105.59 $ 126.55 $ 140.54 $ 124.18 2023 Variance Occupancy change vs 2023 4.3 % 4.0 % 1.1 % 3.0 % ADR change vs 2023 1
Slide 17: Summary Same Store Operating Results (Unaudited)
Summary Same Store Operating Results (Unaudited) Same Store (97) Hotels - 2024 (1) Jan Feb Mar Q1 Occupancy 64.2 % 72.4 % 78.5 % 71.7 % ADR $ 163.32 $ 173.21 $ 177.81 $ 171.91 RevPAR $ 104.89 $ 125.32 $ 139.50 $ 123.19 2023 Variance Occupancy change vs 2023 4.5 % 4.1 % 1.1 % 3.1 % ADR change vs 2023
Slide 18: Summary Joint Venture Operating Results (Unaudited)
Summary Joint Venture Operating Results (Unaudited) GIC JV (40) Hotels - 2024 (1) Jan Feb Mar Q1 Occupancy 69.1 % 76.5 % 82.4 % 76.0 % ADR $ 165.86 $ 175.35 $ 174.55 $ 172.12 RevPAR $ 114.62 $ 134.13 $ 143.83 $ 130.79 2023 Variance Occupancy change vs 2023 5.7 % 5.6 % 2.2 % 4.4 % ADR change vs 2023
Slide 19: Table of Contents
Table of Contents Section I Forward-Looking Statements and Non-GAAP Financial Measure Disclosures Section II Corporate Financial Schedules Section III Operating & Property-Level Schedules Section IV Capitalization and Debt Schedules Section VI Asset Listing 19
Slide 20: Capitalization - Total Enterprise Value (Unaudited)
Capitalization - Total Enterprise Value (Unaudited) (Amounts in thousands, except common share price & dividends) March 31, 2024 December 31, 2023 September 30, 2023 June 30, 2023 March 31, 2023 Common Share Price & Dividends At quarter ended $ 6.51 $ 6.72 $ 5.80 $ 6.51 $ 7.00 High during quarter en
Slide 21: Debt Schedule - Part I (Unaudited)
Debt Schedule - Part I (Unaudited) As of March 31, 2024 Number of Pro Rata Pro Rata Pro Rata (amounts in thousands) Base Interest Fixed/ Fully-Extended Encumbered Principal Non-controlling Principal Disposition Principal Spread Rate Rate Variable Maturity Date Properties Outstanding Interests Outsta
Slide 22: Debt Schedule - Part II (Unaudited)
Debt Schedule - Part II (Unaudited) As of March 31, 2024 (amounts in thousands) Principal Amount Fixed Debt Variable Debt Effective Interest Outstanding Outstanding Outstanding Rate Total Debt $ 1,467,349 $ 355,970 $ 1,111,379 6.36 % Non-controlling Interests in Joint Ventures (308,859) (9,169) (299
Slide 23: Debt Schedule - Part III (Unaudited)
Debt Schedule - Part III (Unaudited) (1) Pro Rata Debt Maturity Ladder at March 31, 2024 $400 $6 $300 $102 $42 $200 $200 $288 $100 $205 $200 $42 $55 $3 $0 $15 2024 2025 2026 2027 2028 2029 2030 $400M Senior Revolver Convertible Senior Notes $200M Senior Term Loan $200M GIC JV Credit Facility Brickel
Slide 24: Table of Contents
Table of Contents Section I Forward-Looking Statements and Non-GAAP Financial Measure Disclosures Section II Corporate Financial Schedules Section III Operating & Property-Level Schedules Section IV Capitalization and Debt Schedules Section VI Asset Listing 24
Slide 25: Asset Listing (Unaudited)
Asset Listing (Unaudited) STR STR Hotels Rooms Chain Scale 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 & Su
Slide 26: Asset Listing (Unaudited)
Asset Listing (Unaudited) STR STR Hotels Rooms Chain Scale 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 &
Slide 27: Asset Listing (Unaudited)
Asset Listing (Unaudited) STR STR Hotels Rooms Chain Scale Location INN Wholly-Owned (100% Ownership), (cont.) Courtyard - Charlotte City Center 1 181 Upscale Urban Hampton Inn & Suites - Baltimore Inner Harbor 1 116 Upper Midscale Urban Residence Inn - Baltimore Downtown/Inner Harbor 1 189 Upscale
Slide 28: Asset Listing (Unaudited)
Asset Listing (Unaudited) STR STR Hotels Rooms Chain Scale 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
Slide 29: Asset Listing (Unaudited)
Asset Listing (Unaudited) STR STR Hotels Rooms Chain Scale 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 1
Slide 30: Asset Listing (Unaudited)
Asset Listing (Unaudited) STR STR Hotels Rooms Chain Scale 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 11 Independent Small Metro/Town Other Joint Ventures (90% Ownershi
Slide 31: Summit Hotel Properties
APX*SUMMIT HOTEL PROPERTIES
Summit Hotel Properties — Q1 2024 Earnings Presentation on 6ix