Summit Hotel Properties, Inc. · NYSE:INN

Summit Hotel Properties — Q3 2023 Earnings Presentation

33 slides from Summit Hotel Properties's earnings presentation, Nov 2, 2023

  1. Slide 1: Earnings Release Supplement Third Quarter 2023

    EARNINGS RELEASE SUPPLEMENT THIRD QUARTER 2023 (UNAUDITED) NOVEMBER 1, 2023

  2. 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 V Asset Listing 2

  3. 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,

  4. 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

  5. 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

  6. 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 V Asset Listing 6

  7. Slide 7: Summary Financial Results (Unaudited)

    Summary Financial Results (Unaudited) For the Three Months Ended For the Nine Months Ended September 30, September 30, (Amounts in thousands, except per share metrics and statistics) 2023 2022 2023 2022 (unaudited) Net loss attributable to common stockholders $ (5,438) $ (517) $ (11,419) $ (4,954) N

  8. Slide 8: Summary Pro Forma Operating Results (Unaudited)

    Summary Pro Forma Operating Results (Unaudited) (Amounts in thousands, except statistics) 2022 2023 Trailing Twelve Months Ended Pro Forma Operating Data (1) Q4 Q1 Q2 Q3 September 30, 2023 Pro forma room revenue $ 152,776 $ 164,144 $ 173,837 $ 161,713 $ 652,470 Pro forma other hotel operating revenu

  9. Slide 9: Adjusted EBITDAre Reconciliation

    Adjusted EBITDAre Reconciliation For the Three Months Ended For the Nine Months Ended September 30, September 30, (Amounts in thousands) 2023 2022 2023 2022 Net (loss) income $ (5,769) $ (1,041) $ (6,849) $ 13,299 Depreciation and amortization 37,882 38,130 112,300 112,462 Interest expense 22,020 17

  10. Slide 10: Adjusted FFO Reconciliation

    Adjusted FFO Reconciliation For the Three Months Ended For the Nine Months Ended September 30, September 30, (Amounts in thousands, except per share metrics) 2023 2022 2023 2022 Net (loss) income $ (5,769) $ (1,041) $ (6,849) $ 13,299 Preferred dividends (3,968) (3,968) (11,906) (11,906) Distributio

  11. Slide 11: Reconciliation to Adjusted EBITDAre – By Ownership Interest (Q3 2023)

    Reconciliation to Adjusted EBITDAre – By Ownership Interest (Unaudited) Q3 2023 Summit GIC Other GIC JV Other JVs Combined Pro Rata (Amounts in thousands, except statistics) Wholly-Owned Joint Venture (2) Joint Ventures (2) Pro Rata Adj Pro Rata Adj Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3

  12. Slide 12: Reconciliation to Adjusted EBITDAre – By Ownership Interest (YTD 2023)

    Reconciliation to Adjusted EBITDAre – By Ownership Interest (Unaudited) YTD 2023 Summit GIC Other GIC JV Other JVs Combined Pro Rata (Amounts in thousands, except statistics) Wholly-Owned Joint Venture (2) Joint Ventures (2) Pro Rata Adj Pro Rata Adj YTD 2023 YTD 2022 YTD 2023 YTD 2022 YTD 2023 YTD

  13. Slide 13: Reconciliation to Adjusted FFO – By Ownership Interest (Q3 2023)

    Reconciliation to Adjusted FFO – By Ownership Interest (Unaudited) Q3 2023 Summit GIC Other GIC JV Other JVs Combined Pro Rata (Amounts in thousands, except per share metrics) Wholly-Owned Joint Venture (3) Joint Ventures (3) Pro Rata Adj Pro Rata Adj Q3 2023 Q3 2022 Q3 2023 Q3 2022 Q3 2023 Q3 2022

  14. Slide 14: Reconciliation to Adjusted FFO – By Ownership Interest (YTD 2023)

    Reconciliation to Adjusted FFO – By Ownership Interest (Unaudited) YTD 2023 Summit GIC Other GIC JV Other JVs Combined Pro Rata (Amounts in thousands, except per share metrics) Wholly-Owned Joint Venture (3) Joint Ventures (3) Pro Rata Adj Pro Rata Adj YTD 2023 YTD 2022 YTD 2023 YTD 2022 YTD 2023 YT

  15. Slide 15: Full Year 2023 Outlook (Unaudited)

    Full Year 2023 Outlook (Unaudited) FYE 2023 Outlook (Amounts in thousands, except per share metrics Variance to Prior % Change to Prior and statistics) Low High Midpoint Midpoint Pro Forma RevPAR (1) $ 119.25 $ 121.00 $ - - Pro Forma RevPAR Growth (1) 6.25% 7.75% - - Adjusted EBITDAre $ 186,500 $ 19

  16. 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 V Asset Listing 16

  17. Slide 17: Pro Forma Operating Results – By Ownership Interest (Q3 2023)

    Pro Forma Operating Results – By Ownership Interest (Unaudited) Q3 2023 INN Wholly-Owned GIC Joint Venture Other Joint Ventures Pro Forma (57 Hotels) (41 Hotels) (3 Hotels) (101 Hotels) (Amounts in thousands, except statistics) 2023 2022 2023 2022 2023 2022 2023 2022 (1) Pro Forma Operating Data Occ

  18. Slide 18: Pro Forma Operating Results – By Ownership Interest (YTD 2023)

    Pro Forma Operating Results – By Ownership Interest (Unaudited) YTD 2023 INN Wholly-Owned GIC Joint Venture Other Joint Ventures Pro Forma (57 Hotels) (41 Hotels) (3 Hotels) (101 Hotels) (Amounts in thousands, except statistics) 2023 2022 2023 2022 2023 2022 2023 2022 (1) Pro Forma Operating Data Oc

  19. Slide 19: Summary Pro Forma Operating Results (Unaudited)

    Summary Pro Forma Operating Results (Unaudited) Pro Forma (101) Hotels - 2023 (1) Q1 Q2 Jul Aug Sep Q3 YTD Occupancy 69.5% 75.5% 73.8% 71.6% 74.7% 73.4% 72.8% ADR $ 174.47 $ 168.33 $ 158.76 $ 153.69 $ 165.55 $ 159.35 $ 167.22 RevPAR $ 121.31 $ 127.06 $ 117.23 $ 110.10 $ 123.63 $ 116.91 $ 121.75 2022

  20. Slide 20: Summary Same Store Operating Results (Unaudited)

    Summary Same Store Operating Results (Unaudited) Same Store (95) Hotels - 2023 (1) Q1 Q2 Jul Aug Sep Q3 YTD Occupancy 69.2% 75.7% 74.3% 72.1% 74.9% 73.7% 72.9% ADR $ 170.89 $ 167.70 $ 159.08 $ 154.17 $ 166.21 $ 159.83 $ 166.01 RevPAR $ 118.24 $ 126.89 $ 118.18 $ 111.08 $ 124.51 $ 117.85 $ 120.99 202

  21. Slide 21: Summary Comparable 2019 Portfolio Operating Results (Unaudited)

    Summary Comparable 2019 Portfolio Operating Results (Unaudited) Comparable (90) Hotels - 2023 (1) Q1 Q2 Jul Aug Sep Q3 YTD Occupancy 69.1% 75.8% 74.9% 72.5% 74.9% 74.1% 73.0% ADR $ 170.67 $ 167.49 $ 158.36 $ 153.46 $ 165.64 $ 159.15 $ 165.63 RevPAR $ 117.99 $ 127.02 $ 118.56 $ 111.27 $ 124.07 $ 117.

  22. Slide 22: Summary Joint Venture Operating Results (Unaudited)

    Summary Joint Venture Operating Results (Unaudited) GIC JV (41) Hotels - 2023 (1) Q1 Q2 Jul Aug Sep Q3 YTD Occupancy 72.6% 76.5% 73.5% 71.8% 74.2% 73.2% 74.1% ADR $ 175.25 $ 156.03 $ 148.48 $ 145.15 $ 156.31 $ 149.97 $ 160.22 RevPAR $ 127.19 $ 119.33 $ 109.19 $ 104.24 $ 115.91 $ 109.71 $ 118.68 2022

  23. 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 V Asset Listing 23

  24. Slide 24: Capitalization – Total Enterprise Value (Unaudited)

    Capitalization – Total Enterprise Value (Unaudited) September 30, June 30, March 31, December 31, September 30, (in thousands, except per share data) 2023 2023 2023 2022 2022 Common Share Price & Dividends At quarter ended $ 5.80 $ 6.51 $ 7.00 $ 7.22 $ 6.72 High during quarter ended $ 6.87 $ 7.26 $

  25. Slide 25: Debt Schedule – Part I (Unaudited)

    Debt Schedule – Part I (Unaudited) As of September 30, 2023 Base Interest Fixed / Fully-Extended Number of Principal Noncontrolling Pro Rata Spread Encumbered Principal Rate Rate Variable Maturity Date Outstanding Interests Properties Outstanding (amounts in thousands) Senior Credit Facility (1) $40

  26. Slide 26: Debt Schedule – Part II (Unaudited)

    Debt Schedule – Part II (Unaudited) As of September 30, 2023 Principal Amount Fixed Debt Variable Debt Effective Interest (amounts in thousands) Outstanding Outstanding Outstanding Rate Total Debt $ 1,461,340 $ 454,848 $ 1,006,492 6.33% Noncontrolling Interests in Joint Ventures (312,882) (107,281)

  27. Slide 27: Debt Schedule – Part III (Unaudited)

    Debt Schedule – Part III (Unaudited) As of September 30, 2023 Pro Rata Debt Maturity Ladder $500 $400 $7 $300 $102 $42 $43 $200 $288 $225 $200 $100 $209 $15 $0 $3 $0 $15 2023 2024 2025 2026 2027 2028 2029+ $400M Senior Revolver $200M Senior Term Loan $225M Senior Term Loan Convertible Senior Notes $

  28. 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 V Asset Listing 28

  29. Slide 29: Asset Listing (Unaudited)

    Asset Listing (Unaudited) STR STR Hotels Rooms Chain Scale 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

  30. Slide 30: Asset Listing (Unaudited)

    Asset Listing (Unaudited) STR STR Hotels Rooms Chain Scale Location INN Wholly-Owned (100% Ownership), (cont.) Staybridge Suites - Denver/Cherry Creek 1 121 Upscale Suburban AC Hotel - Atlanta Downtown 1 255 Upscale Urban Courtyard - Atlanta Downtown 1 150 Upscale Urban Courtyard - Charlotte City Ce

  31. Slide 31: Asset Listing (Unaudited)

    Asset Listing (Unaudited) STR STR Hotels Rooms Chain Scale 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

  32. Slide 32: Asset Listing (Unaudited)

    Asset Listing (Unaudited) STR STR Hotels Rooms Chain Scale Location (1) GIC Joint Venture (51% Ownership) Hampton Inn & Suites - Dallas Downtown 1 176 Upper Midscale Urban Hampton Inn & Suites - Tampa/Ybor City/Downtown 1 138 Upper Midscale Urban Holiday Inn Express & Suites - Oklahoma City Downtown

  33. Slide 33: Summit Hotel Properties

    AS SUMMIT Ser HOOT EE

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