Summit Hotel Properties, Inc. · NYSE:INN
Summit Hotel Properties — Investor Presentation (March 2024)
31 slides from Summit Hotel Properties's investor presentation, March 2024
Slide 1: March 2024
MARCH 2024 – Austin Downtown – Miami Brickell
Slide 2: 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 us
Slide 3: Summit Hotel Properties (NYSE: INN) at a glance
(NYSE: INN) Lodging Assets (1) Guestrooms (1) Markets (1) Top 50 Markets (1,2) Recent Acquisitions Marriott, Hyatt Hilton (2) GOP Margin (1,3) Portfolio RevPAR Index (4) – Miami Brickell 1. Based on 99 lodging assets owned as of February 28, 2024. 2. Based on guestroom count for the 99 lodging asset
Slide 4: Summit
SUMMIT 4 – Dallas Frisco Station
Slide 5: Investment highlights
Efficient operating model & best-in- class platform drives profitability Premier portfolio with broad geographic diversification and concentration in high growth sun belt markets Targeted capital allocation strategy with proven track record of external growth and capital recycling Well-positioned ba
Slide 6: Summit's operating platform
Summit’s operating platform is built on its expertise and experience in revenue and asset management, design and construction, and capital allocation all underpinned by robust business intelligence and data analytics • Consistent on-site presence and • Deep network of industry relationships • Intens
Slide 7: Rooms revenue driven operating model
• Rooms revenue driven model enhances GOP and EBITDA margins • Restructuring of the operating model during the pandemic leads to lower FTE run rate going forward • Proprietary, in-house revenue management platform partners with management companies to more effectively yield manage the portfolio and
Slide 8: Cumulative RevPAR Growth: Summit Pro Forma Portfolio vs. STR Upscale
Cumulative RevPAR Growth: Summit Pro Forma Portfolio vs. STR Upscale (1) Summit STR Upscale 60% 48% Summit has a track record of outperformance with cumulative RevPAR growth, exceeding the STR Upscale 40% 37% chain scale benchmark by a 150-basis point CAGR over the 12 years since the Company’s IPO.
Slide 9: Full Year 2023 Hotel EBITDA Margin
Full Year 2023 Hotel EBITDA Margin 35.6% 33.8% 30.1% 29.4% (1) (2) (3) Summit Select-Service All Peers Full-Service Peers Peers – Atlanta Downtown 1. Summit based on the pro forma twelve-month financials ending December 31, 2023, for the 99 lodging assets owned as of February 28, 2024. 2. Select-ser
Slide 10: Portfolio diversification by market
No single asset contributes more than 4% to our portfolio, and Dallas is the only market that contributes >10%. Portland Each individual Dallas submarket contributes <5%. (1) Boston Minneapolis U.S. # of % of Chicago Markets Rooms Portfolio (2) San Francisco Rocky Baltimore Mountains Indianapolis To
Slide 11: Chain scale breakdown and supply/demand outlook
Summit Portfolio Chain Scale Breakdown (2) 7% 14% CBRE (1) Total US Upscale Supply Demand Supply Demand Nov 2023 Variance Variance Growth Growth Growth Growth 2019 1.6% 2.0% 40 bps 4.2% 4.4% 20 bps 2020 1.0% -34.9% -3,590 bps 2.7% -40.8% -4,350 bps 2021 1.1% 36.3% 3,520 bps 3.3% 47.3% 4,400 bps 80%
Slide 12: Franchisor and hotel type mix
Summit believes in the value of brand loyalty and partners with leading global brands that provide access to millions of enrolled loyalty members. We believe guests value premium standards, exceptional service, diverse types of stay offerings, and ease of reservation that result in a positive guest
Slide 13: Summit
SUMMIT 13 – New Orleans Downtown
Slide 14: Capital allocation strategy and GIC joint venture
• Locations in “Markets that Matter” with • Own 40 hotels totaling 5,454 guestrooms with a favorable supply/demand dynamics and multiple well-respected global real estate investor demand generators further validates Summit’s platform and • Efficient operating models and value-add operating model opp
Slide 15: Acquisitions relative to lodging peers
Over the past two years, Summit has been highly acquisitive relative to the lodging peer set, setting the stage for outsized EBITDA growth over the next several years Gross Acquisition Value (1) Acquisitions as a % of TEV (2) 33% $800 24% $526 $461 $366 $330 $328 14% $315 11% $232 $207 8% 7% 7% 7% $
Slide 16: Joint venture and acquisition investment thesis
• 51% summit / 49% • Summit as General Partner & Asset Manager • Acquired Hampton Inn & Suites Silverthorne for $26MM • Acquired 4-Hotel Portfolio for $249MM • $249MM Gross Transaction Value • Summit sold 49% interest to the Joint Venture Further validates Summit’s investment thesis and operating pl
Slide 17: Recent acquisition highlights
RECENT Summit AC / Element Onera Key ACQUISITION 2023 Acquisitions Summit Pro Forma Same Store (1) Miami Fredericksburg Highlights HIGHLIGHTS 5% # of Assets Growth 3% # of Guestrooms Growth Date of - Acquisition Gross ~$137MM Purchase Price Invested Attractive Price per Key Basis of $309K / Key Stab
Slide 18: In-house renovations program
Recently Completed Renovations Ongoing & Upcoming Renovations Hyatt Place Orlando Universal Studios Residence Inn Portland Hillsboro Residence Inn Portland Downtown Courtyard New Haven Hyatt Place Orlando I-Drive Hotel Indigo Asheville Summit’s in-house design, construction & asset Courtyard New Orl
Slide 19: Property photos
– New Orleans Metairie – Orlando Universal 19 – Houston Energy Corridor – Portland Downtown RiverPlace
Slide 20: Summit
SUMMIT 20 – Asheville Downtown
Slide 21: Pro forma capital structure and debt maturity schedule
Pro Forma Capital Structure (1,2) Net Debt: $1.1 Billion 15% Common Equity: $0.8 Billion Pro Rata Preferred Equity: $0.3 Billion Capitalization 52% Pro Forma Debt Maturity Schedule (1) 33% GIC JV Credit Facility GIC JV NCI Term Loan BofA Term Loan JV Mortgage Debt Mortgage Debt Regions Term Loan Con
Slide 22: Limited variable-rate debt exposure and liquidity
Limited Variable- Rate Debt Exposure (1) 80% ~80% of pro rata debt and preferred with fixed interest rates Total variable Exceptional Liquidity Profile Minimal Near-Term Debt debt 20% Among the Industry’s Best (1,2,3,4) Maturities (1,3) Total fixed debt Only 5% of pro rata debt matures + preferred ~
Slide 23: Summit
SUMMIT 23 – Amarillo Downtown
Slide 24: ESG achievements
Over the past year, we have developed a climate action plan to achieve our emissions reduction target of 30% by year-end 2025. Our climate plan includes Contributed over $140,000 and Achieved a positive response Increased the composition of active data and energy management programs and systems to e
Slide 25: ESG goals
• Continue to improve our building • Contribute over $150,000 and 250 hours • Continued compliance with all ethics efficiencies by increasing the number of volunteer service to support our local and corporate governance of properties in our portfolio with communities in 2023. requirements in 2023. g
Slide 26: Executive leadership
President & Chief Executive Officer Mr. Stanner joined Summit Hotel Properties in April 2017 and most recently served as the company’s Executive Vice President and Chief Financial Officer. Prior to joining Summit, Mr. Stanner was Chief Executive Officer at Strategic Hotels & Resorts, a former NYSE-l
Slide 27: Summit
SUMMIT 27 – Houston Downtown
Slide 28: Fourth quarter and full year 2023 highlights
• Occupancy: 72.2% (+3.4%); ADR: $166 (+3.1%); RevPAR: $120 (+6.6%) • The NewcrestImage portfolio continues to produce exceptionally strong results • RevPAR growth +13%; hotel EBITDA +15% • Market share grew over 500 basis points to a RevPAR index of 112 • Strong pro forma hotel EBITDA growth (+6%)
Slide 29: 2024 Outlook
20 24 O UTLO O K Full Year 2024 Low High Pro Forma RevPAR Growth 2.00% 4.00% Adjusted EBITDA $188,000 $200,000 Adjusted FFO $111,000 $123,000 Adjusted FFO per Diluted Unit $0.90 $1.00 Capital Expenditures, Pro Rata $65,000 $85,000 – Steamboat Springs 1. All pro forma information includes operating &
Slide 30: Portfolio by location type and RevPAR recapture
% of Portfolio by 4% STR Location (1) 11% Urban 11% The greatest opportunity for further RevPAR acceleration is from weekday Suburban performance improvement, likely to be driven by the urban location type through the 48% Airport business transient and corporate group segments. Resort FYE 2023 RevPA
Slide 31: Summit Hotel Properties
SUMMIT HOTEL PROPERTIES
Summit Hotel Properties — Investor Presentation (March 2024) on 6ix