Summit Hotel Properties, Inc. · NYSE:INN
Summit Hotel Properties — Q4 2023 Earnings Presentation
32 slides from Summit Hotel Properties's earnings presentation, Feb 29, 2024
Slide 1: Earnings Release Supplement Fourth Quarter 2023
EARNINGS RELEASE SUPPLEMENT FOURTH QUARTER 2023 (UNAUDITED) FEBRUARY 27, 2024
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
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 V Asset Listing 6
Slide 7: Summary Financial Results (Unaudited)
Summary Financial Results (Unaudited) For the Three Months Ended For the Years Ended December 31, December 31, (Amounts in thousands, except per share metrics and statistics) 2023 2022 2023 2022 (unaudited) Net loss attributable to common stockholders $ (16,571) $ (11,975) $ (27,990) $ (16,929) Net
Slide 8: Summary Pro Forma Operating Results (Unaudited)
Summary Pro Forma Operating Results (Unaudited) (Amounts in thousands, except statistics) 2023 Year Ended Pro Forma Operating Data (1) Q1 Q2 Q3 Q4 December 31, 2023 Pro forma room revenue $ 163,493 $ 172,972 $ 160,853 $ 156,459 $ 653,777 Pro forma other hotel operating revenue 19,202 20,250 20,080 2
Slide 9: Adjusted EBITDAre Reconciliation
Adjusted EBITDAre Reconciliation For the Three Months Ended For the Years Ended December 31, December 31, (Amounts in thousands) 2023 2022 2023 2022 Net (loss) income $ (21,267) $ (12,082) $ (28,116) $ 1,217 Depreciation and amortization 38,624 37,698 150,924 150,160 Interest expense 21,621 19,379 8
Slide 10: Adjusted FFO Reconciliation
Adjusted FFO Reconciliation For the Three Months Ended For the Years Ended December 31, December 31, (Amounts in thousands, except per share metrics) 2023 2022 2023 2022 Net (loss) income $ (21,267) $ (12,082) $ (28,116) $ 1,217 Preferred dividends (3,969) (3,969) (15,875) (15,875) Distributions to
Slide 11: Reconciliation to Adjusted EBITDAre – By Ownership Interest (Unaudited)
Reconciliation to Adjusted EBITDAre – By Ownership Interest (Unaudited) Q4 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 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4
Slide 12: Reconciliation to Adjusted EBITDAre – By Ownership Interest (Unaudited)
Reconciliation to Adjusted EBITDAre – By Ownership Interest (Unaudited) FYE 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 FYE 2023 FYE 2022 FYE 2023 FYE 2022 FYE 2023 FYE
Slide 13: Reconciliation to Adjusted FFO – By Ownership Interest (Unaudited)
Reconciliation to Adjusted FFO – By Ownership Interest (Unaudited) Q4 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 Q4 2023 Q4 2022 Q4 2023 Q4 2022 Q4 2023 Q4 2022
Slide 14: Reconciliation to Adjusted FFO – By Ownership Interest (Unaudited)
Reconciliation to Adjusted FFO – By Ownership Interest (Unaudited) FYE 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 FYE 2023 FYE 2022 FYE 2023 FYE 2022 FYE 2023 FY
Slide 15: Full Year 2024 Outlook (Unaudited)
Full Year 2024 Outlook (Unaudited) FYE 2024 Outlook (Amounts in thousands, except per share metrics and statistics) Low High Pro Forma RevPAR Growth (1) 2.00% 4.00% Adjusted EBITDAre $ 188,000 $ 200,000 Adjusted FFO $ 111,000 $ 123,000 Adjusted FFO per Diluted Unit $ 0.90 $ 1.00 Capital Expenditures
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
Slide 17: Pro Forma Operating Results – By Ownership Interest (Unaudited)
Pro Forma Operating Results – By Ownership Interest (Unaudited) Q4 2023 INN Wholly-Owned GIC Joint Venture Other Joint Ventures Pro Forma (56 Hotels) (41 Hotels) (3 Hotels) (100 Hotels) (Amounts in thousands, except statistics) 2023 2022 2023 2022 2023 2022 2023 2022 (1) Pro Forma Operating Data Occ
Slide 18: Pro Forma Operating Results – By Ownership Interest (Unaudited)
Pro Forma Operating Results – By Ownership Interest (Unaudited) FYE 2023 INN Wholly-Owned GIC Joint Venture Other Joint Ventures Pro Forma (56 Hotels) (41 Hotels) (3 Hotels) (100 Hotels) (Amounts in thousands, except statistics) 2023 2022 2023 2022 2023 2022 2023 2022 (1) Pro Forma Operating Data Oc
Slide 19: Summary Pro Forma Operating Results (Unaudited)
Summary Pro Forma Operating Results (Unaudited) Pro Forma (100) Hotels - 2023 (1) Q1 Q2 Q3 Oct Nov Dec Q4 FYE Occupancy 69.6% 75.5% 73.4% 77.0% 70.8% 63.3% 70.4% 72.2% ADR $ 174.96 $ 168.75 $ 159.69 $ 176.53 $ 158.91 $ 148.02 $ 162.10 $ 166.27 RevPAR $ 121.83 $ 127.48 $ 117.25 $ 135.88 $ 112.47 $ 93
Slide 20: Summary Same Store Operating Results (Unaudited)
Summary Same Store Operating Results (Unaudited) Same Store (94) Hotels - 2023 (1) Q1 Q2 Q3 Oct Nov Dec Q4 FYE Occupancy 69.3% 75.7% 73.8% 77.1% 70.7% 63.0% 70.3% 72.3% ADR $ 171.37 $ 168.13 $ 160.19 $ 176.52 $ 157.80 $ 145.35 $ 160.96 $ 165.09 RevPAR $ 118.75 $ 127.32 $ 118.21 $ 136.09 $ 111.60 $ 9
Slide 21: Summary Joint Venture Operating Results (Unaudited)
Summary Joint Venture Operating Results (Unaudited) GIC JV (41) Hotels - 2023 (1) Q1 Q2 Q3 Oct Nov Dec Q4 FYE Occupancy 72.6% 76.5% 73.2% 75.5% 72.7% 68.7% 72.3% 73.6% ADR $ 175.25 $ 156.03 $ 149.97 $ 162.65 $ 151.03 $ 139.68 $ 151.48 $ 158.06 RevPAR $ 127.19 $ 119.33 $ 109.71 $ 122.74 $ 109.85 $ 95
Slide 22: 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 22
Slide 23: Capitalization – Total Enterprise Value (Unaudited)
Capitalization – Total Enterprise Value (Unaudited) December 31, September 30, June 30, March 31, December 31, (in thousands, except per share data) 2023 2023 2023 2023 2022 Common Share Price & Dividends At quarter ended $ 6.72 $ 5.80 $ 6.51 $ 7.00 $ 7.22 High during quarter ended $ 6.98 $ 6.87 $ 7
Slide 24: Debt Schedule – Part I (Unaudited)
Debt Schedule – Part I (Unaudited) As of December 31, 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) $400
Slide 25: Debt Schedule – Part II (Unaudited)
Debt Schedule – Part II (Unaudited) As of December 31, 2023 Principal Amount Fixed Debt Variable Debt Effective Interest (amounts in thousands) Outstanding Outstanding Outstanding Rate Total Debt $ 1,445,839 $ 356,415 $ 1,089,424 6.35% Noncontrolling Interests in Joint Ventures (312,850) (9,251) (30
Slide 26: Debt Schedule – Part III (Unaudited)
Debt Schedule – Part III (Unaudited) As of December 31, 2023 Pro Rata Debt Maturity Ladder $500 $400 $7 $300 $42 $102 $43 $200 $288 (2) $225 $209 $100 $200 $15 $0 $3 $0 2023 2024 2025 2026 2027 2028 2029+ $400M Senior Revolver $200M Senior Term Loan $225M Senior Term Loan Convertible Senior Notes $2
Slide 27: 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 27
Slide 28: 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
Slide 29: Asset Listing (Unaudited)
Asset Listing (Unaudited) STR STR Hotels Rooms Chain Scale Location INN Wholly-Owned (100% Ownership), (cont.) AC Hotel - Atlanta Downtown 1 255 Upscale Urban Courtyard - Atlanta Downtown 1 150 Upscale Urban Courtyard - Charlotte City Center 1 181 Upscale Urban Courtyard - Fort Worth Downtown/Blacks
Slide 30: 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
Slide 31: 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
Slide 32: Summit Hotel Properties
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