Summit Hotel Properties, Inc. · NYSE:INN
Summit Hotel Properties — Investor Presentation (November 2024)
32 slides from Summit Hotel Properties's investor presentation, November 2024
Slide 1: November 2024
NOVEMBER 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 (2) Recent Dispositions Marriott, Hyatt, Hilton (2) GOP Margin (1,3) Portfolio RevPAR Index (1,4) – Miami Brickell 1. Based on 95 lodging assets owned as of November 4, 2024. 2. Based on guestroom count for the 95 lodging asset
Slide 4: Summit
SUMMIT 4 – Houston Downtown
Slide 5: Third quarter 2024 highlights
• Occupancy: 73.7% (-1.2%); ADR: $163 (+1.3%); RevPAR: $120 (+0.1%) • Select recovering markets achieved 8% RevPAR growth and 12% hotel EBITDA growth (Baltimore, Louisville, Minneapolis, New Orleans, and San Jose) • Urban and suburban RevPAR increase 1.3% and 3.9%, respectively, representing ~75% of
Slide 6: 2024 Outlook
20 24 O UTLO O K Full Year 2024 Low High Pro Forma RevPAR Growth (1) 1.00% 2.00% Adjusted EBITDA $188,000 $194,000 Adjusted FFO $113,000 $121,000 Adjusted FFO per Diluted Unit $0.92 $0.98 Capital Expenditures, Pro Rata $75,000 $85,000 • October preliminary pro forma RevPAR growth ~2.5%. – Steamboat
Slide 7: Positioned for outperformance in recovering urban markets
Summit is positioned for continued relative outperformance given its exposure to several urban markets that have been slower to recover to pre-pandemic levels. In aggregate, these five markets had Q3 and YTD 2024 RevPAR growth of 8% and 13%, respectively, and hotel EBITDA growth of 12% and 37%, resp
Slide 8: Portfolio by location type and comparable RevPAR
% of Portfolio by 4% STR Location (1) 11% Urban 11% The greatest opportunity for further RevPAR acceleration is from weekday Suburban 48% performance improvement, particularly related to the urban location type driven by Airport growth in business transient and group demand. Resort Q3 2024 Comparabl
Slide 9: Summit
SUMMIT 9 – Dallas Frisco Station
Slide 10: 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 11: 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 12: Efficient 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 13: Cumulative RevPAR Growth vs. STR Upscale
Cumulative RevPAR Growth: Summit Pro Forma Portfolio vs. STR Upscale (1) Summit STR Upscale 60% Summit has a track record of outperformance with cumulative RevPAR growth exceeding the STR Upscale 40% chain scale benchmark by a 130-basis point CAGR over the past 10 years. Cumulative RevPAR Growth 20%
Slide 14: T12 Hotel EBITDA Margin vs. peers
T12 Hotel EBITDA Margin 36.1% 34.4% 29.9% 29.1% (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 September 30, 2024, for the 95 lodging assets owned as of November 4, 2024. 2. Select-service peer d
Slide 15: Geographic diversification of portfolio
No single asset contributes more than 3% to our portfolio, and Dallas-Fort Worth is the only market that Portland contributes >8%. Each individual Dallas submarket contributes <5%. (1) Boston Minneapolis U.S. # of % of Chicago Markets Rooms Portfolio (2) San Francisco Rocky Mountains Baltimore India
Slide 16: Chain scale breakdown and supply/demand outlook
Summit Portfolio Chain Scale Breakdown (2) 7% 14% CBRE (1) Total US Upscale Supply Demand Supply Demand Aug 2024 Variance Variance Growth Growth Growth Growth 2019 1.6% 2.3% 70 bps 4.2% 4.4% 20 bps 2020 0.9% -35.2% -3,610 bps 2.6% -40.9% -4,350 bps 2021 1.0% 37.0% 3,600 bps 3.2% 47.2% 4,400 bps 79%
Slide 17: Franchisor and hotel type breakdown
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 18: Summit
SUMMIT 18 – New Orleans Downtown
Slide 19: Capital allocation strategy and GIC partnership
• Locations in “Markets that Matter” with • Own 39 hotels totaling 5,334 guestrooms with a favorable supply/demand dynamics and multiple well-respected global real estate investor demand generators further validates Summit’s platform and operating model • Efficient operating models and value-add opp
Slide 20: Gross acquisition value vs. 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) $526 25% $261 5% INN AVG PEER INN AVG PEER 1. Amounts in millions. Complet
Slide 21: GIC joint venture validates investment thesis
• 51% Summit / 49% GIC • Summit as General Partner & Asset Manager • Acquired Hampton Inn & Suites Silverthorne for $26MM • Acquired 4-Hotel Portfolio for $249MM • $249MM Gross Transaction Value Further validates Summit’s investment thesis and operating platform • Summit sold 49% interest to the Joi
Slide 22: Recent acquisition highlights
RECENT Onera Summit AC / Element 2023 Recent Summit ACQUISITION Fredericksburg Same Store (1) Miami Acquisition Acquisitions Dispositions Pro Forma HIGHLIGHTS Acquisition # of Assets # of Guestrooms Date of Transaction Gross Transaction Price Price per Key Stabilized Yield (2) RevPAR Growth (3) 1. B
Slide 23: In-house design, construction and renovations
Recently Completed Renovations Ongoing & Upcoming Renovations Courtyard Grapevine DFW Airport Courtyard Charlotte City Center Courtyard New Haven at Yale Courtyard Fort Lauderdale Beach Embassy Suites Tucson Hampton inn & Suites Dallas Downtown Summit’s in-house design, construction & asset manageme
Slide 24: Renovated property photos
– Dallas Downtown – Asheville Downtown 24 – Denver Park Meadows – Portland Hillsboro
Slide 25: Summit
SUMMIT 25 – Asheville Downtown
Slide 26: Pro forma capital structure
Pro Forma Capital Structure (1,2) Net Debt: $1.0 Billion 15% Common Equity: $0.8 Billion Pro Rata Preferred Equity: $0.3 Billion Capitalization 48% Pro Forma Debt Maturity Schedule (1) 37% JV MR1 JV MR3 B of A Credit Facility Term Loan Term Loan Regions Convertible JV Term Loan Debt Mortgage Debt $6
Slide 27: Limited variable-rate debt exposure and liquidity
Limited Variable- Rate Debt Exposure (1) 82% Over 80% of pro rata debt and preferred with fixed interest rates Total variable Exceptional Liquidity Profile Minimal Near-Term Debt debt 18% Among the Industry’s Best (1,2,3,4) Maturities (1,3) Total fixed debt Only 4% of pro rata debt matures + preferr
Slide 28: Summit
SUMMIT 28 – Amarillo Downtown
Slide 29: 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 $185,000 and In 2023, we hosted our 1st 80% of promotions were active data and energy management programs and systems to enhance b
Slide 30: ESG goals
• Continue to improve our building • Contribute cumulatively over $1 million • Complete 250 hours of advanced efficiencies by increasing the number in direct donations and 1,500 volunteer cybersecurity training to mitigate of properties in our portfolio with service hours to support community- cyber
Slide 31: 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 32: Summit Hotel Properties
SUMMIT HOTEL PROPERTIES
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