Summit Hotel Properties, Inc. · NYSE:INN
Summit Hotel Properties — Q4 2022 Earnings Presentation
33 slides from Summit Hotel Properties's earnings presentation, Feb 27, 2023
Slide 1: Earnings Release Supplement Fourth Quarter 2022
E ARNINGS R ELEASE S UPPLEMENT F OURTH Q UARTER 2022 F EBRUARY 27, 2022
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,
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 : (
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 EBITDA re , which is based on EBITDA and is expected to provide additional relevant information about REITs as real estate companies in support of growi
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
Summary Financial Results (1) See tables later in this presentation for a discussion and reconciliation of net loss to non - GAAP financial measures, including earnings before interest, taxes, depreciation, and amortization (“EBITDA”), EBITDAre, adjusted EBITDAre, funds from operations (“FFO”), FFO
Slide 8: Summary Pro Forma Operating Results
Summary Pro Forma Operating Results (1) Unaudited pro forma information includes operating results for 103 hotels owned as of December 31, 2022, as if all such hotel s h ad been owned by the Company since January 1, 2022. For hotels acquired by the Company after January 1, 2022 (the “Acquired Hotels
Slide 9: Adjusted EBITDAre Reconciliation
Adjusted EBITDAre Reconciliation (1) Non - cash interest income relates to the amortization of the discount on certain notes receivable. The discount on these notes re ceivable was recorded at inception of the related loans based on the estimated value of the embedded purchase options in the notes r
Slide 10: Adjusted FFO Reconciliation
Adjusted FFO Reconciliation (1) The total of these line items represents depreciation and amortization as reported on the Company’s Condensed Consolidated St ate ments of Operations for the periods presented. (2) Non - cash interest income relates to the amortization of the discount on certain notes
Slide 11: Reconciliation to Adjusted EBITDAre – By Ownership Interest Q4 2022
Reconciliation to Adjusted EBITDAre – By Ownership Interest Q4 2022 (1) Non - cash interest income relates to the amortization of the discount on certain notes receivable. The discount on these notes re ceivable was recorded at inception of the related loans based on the estimated value of the embed
Slide 12: Reconciliation to Adjusted FFO – By Ownership Interest Q4 2022
Summit Wholly-Owned GIC Joint Venture (4) Other Joint Ventures (4) Consolidated GIC JV Pro Rata Adj Other JVs Pro Rata Adj Pro Rata Q4 2022 Q4 2021 Q4 2022 Q4 2021 Q4 2022 Q4 2021 Q4 2022 Q4 2021 Q4 2022 Q4 2021 Q4 2022 Q4 2021 Q4 2022 Q4 2021 Net (loss) income (7,904)$ (11,212)$ (4,356)$ 307$ 178$
Slide 13: Reconciliation to Adjusted EBITDAre – By Ownership Interest Full Year 2022
Reconciliation to Adjusted EBITDAre – By Ownership Interest Full Year 2022 (1) Non - cash interest income relates to the amortization of the discount on certain notes receivable. The discount on these notes re ceivable was recorded at inception of the related loans based on the estimated value of th
Slide 14: Reconciliation to Adjusted FFO – By Ownership Interest Full Year 2022
Reconciliation to Adjusted FFO – By Ownership Interest Full Year 2022 (1) The total of these line items represents depreciation and amortization as reported on the Company’s Condensed Consolidated St ate ments of Operations for the periods presented. (2) Non - cash interest income relates to the amo
Slide 15: Full Year 2023 Outlook
Full Year 2023 Outlook (1) All pro forma information includes operating and financial results for 103 hotels owned as of December 31, 2022, as if each h ote l had been owned by the Company since January 1, 2022 and will continue to be owned through the entire year ending December 31, 2023. As a resu
Slide 16: 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 16
Slide 17: Pro Forma Operating Results – By Ownership Interest (Q4)
INN Wholly-Owned (61 Hotels) GIC Joint Venture (39 Hotels) Other Joint Ventures (3 Hotels) Pro Forma (103 Hotels) 2022 2021 2022 2021 2022 2021 2022 2021 Pro Forma Operating Data (1) Occupancy 67.1% 64.2% 69.9% 69.8% 79.7% 45.8% 68.3% 66.1% ADR 162.21$ 143.27$ 152.08$ 133.80$ 213.55$ 228.64$ 159.62$
Slide 18: Pro Forma Operating Results – By Ownership Interest (Full Year)
INN Wholly-Owned (61 Hotels) GIC Joint Venture (39 Hotels) Other Joint Ventures (3 Hotels) Pro Forma (103 Hotels) 2022 2021 2022 2021 2022 2021 2022 2021 Pro Forma Operating Data (1) Occupancy 69.4% 61.4% 69.9% 67.5% 73.3% 45.8% 69.6% 63.6% ADR 162.28$ 128.21$ 151.13$ 123.56$ 212.89$ 228.64$ 159.30$
Slide 19: Summary Pro Forma Operating Results
Summary Pro Forma Operating Results (1) Unaudited pro forma information includes operating results for 103 hotels owned as of December 31, 2022, as if all such hotel s h ad been owned by the Company since January 1, 2019. For any hotels acquired by the Company after January 1, 2019 (the “Acquired Ho
Slide 20: Summary Comparable 2019 Portfolio Operating Results
Summary Comparable 2019 Portfolio Operating Results (1) Unaudited pro forma information includes operating results for 92 comparable hotels owned as of December 31, 2022, as if all suc h hotels had been owned by the Company since January 1, 2019. For any hotels acquired by the Company after January
Slide 21: Summary Same Store Operating Results
Summary Same Store Operating Results (1) Unaudited pro forma information includes operating results for 71 same store hotels owned as of December 31, 2022, as if all suc h hotels had been owned by the Company since January 1, 2019. For any hotels acquired by the Company after January 1, 2019 (the “A
Slide 22: Summary Joint Venture Operating Results
Summary Joint Venture Operating Results (1) Unaudited pro forma information includes operating results for 42 JV hotels owned as of December 31, 2022, as if all such hotels had been owned by the Company since January 1, 2019. For any h ot els acquired by the Company after January 1, 2019 (the “Acqui
Slide 23: 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 23
Slide 24: Capitalization – Total Enterprise Value
Capitalization – Total Enterprise Value December 31, September 30, June 30, March 31, December 31, (in thousands, except per share data) 2022 2022 2022 2022 2021 Common Share Price & Dividends At quarter ended 7.22$ 6.72$ 7.27$ 9.96$ 9.76$ High during quarter ended 8.64$ 8.99$ 10.17$ 10.52$ 10.54$ L
Slide 25: Debt Schedule – Part I
(amounts in thousands) Spread Base Rate Interest Rate Fixed / Variable Fully-Extended Maturity Date Number of Encumbered Properties Principal Outstanding Noncontrolling Interests Pro Rata Principal Outstanding Senior Credit Facility $400 Million Revolver (1) 2.05% 4.32% 6.37% Variable March 31, 2025
Slide 26: Debt Schedule – Part II
Debt Schedule – Part II As of December 31, 2022 (amounts in thousands) Principal Amount Outstanding Fixed Debt Outstanding Variable Debt Outstanding Effective Interest Rate Total Debt 1,463,124$ 358,433$ 1,104,691$ 5.56% Noncontrolling Interests in Joint Ventures (313,069) (9,469) (303,600) Pro Rata
Slide 27: Debt Schedule – Part III
$15 $200 $225 $288 $0 $102 $209 $7 $3 $42 $15 $44 $0 $150 $300 $450 $600 $750 2023 2024 2025 2026 2027 2028 2029+ Pro Rata Debt Maturity Ladder $400M Senior Revolver $200M Senior Term Loan $225M Senior Term Loan Convertible Senior Notes $200M GIC JV Credit Facility $410M GIC JV Term Loan GIC JV Mort
Slide 28: 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 28
Slide 29: Asset Listing
Asset Listing Hotels Rooms STR Chain Scale STR Location INN Wholly-Owned (100% Ownership) Courtyard - New Orleans/Metairie 1 153 Upscale Airport Doubletree by Hilton San Francisco Airport North Bayfront 1 210 Upscale Airport Four Points - San Francisco Airport 1 101 Upscale Airport Hyatt House - Mia
Slide 30: Asset Listing (cont.)
Asset Listing (cont.) Hotels Rooms STR Chain Scale STR Location INN Wholly-Owned (100% Ownership), (cont.) Residence Inn - Baltimore/Hunt Valley 1 141 Upscale Suburban Residence Inn - Boston/Watertown 1 150 Upscale Suburban Residence Inn - Bridgewater/Branchburg 1 101 Upscale Suburban Residence Inn
Slide 31: Asset Listing (cont.)
Asset Listing (cont.) Hotels Rooms STR Chain Scale STR Location GIC Joint Venture (51% Ownership) (1) Courtyard - Dallas DFW Airport / North Grapevine 1 181 Upscale Airport Hilton Garden Inn - Grapevine at Silver Lake Crossing 1 152 Upscale Airport Holiday Inn Express & Suites - DFW / Grapevine 1 95
Slide 32: Asset Listing (cont.)
Asset Listing (cont.) (1) Asset listing excludes two parking garages located in Dallas, TX and Frisco, TX. Hotels Rooms STR Chain Scale STR Location GIC Joint Venture (51% Ownership) (1) Holiday Inn Express & Suites - Oklahoma City Downtown / Bricktown 1 124 Upper Midscale Urban Hyatt Place - Lubboc
Slide 33: Summit Hotel Properties
M~ SUMMIT HOTEL PROPERTIES
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