Summit Hotel Properties, Inc. · NYSE:INN
Summit Hotel Properties — Q1 2023 Earnings Presentation
30 slides from Summit Hotel Properties's earnings presentation, May 4, 2023
Slide 1: Earnings Release Supplement First Quarter 2023
EARNINGS RELEASE SUPPLEMENT FIRST QUARTER 2023 (UNAUDITED) MAY 3, 2023
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, 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 VI Asset Listing 6
Slide 7: Summary Financial Results (Unaudited)
Summary Financial Results (Unaudited) For the Three Months Ended March 31, (In thousands, except per share metrics) 2023 2022 Net loss attributable to common stockholders $ (5,228) $ (12,379) Net loss per diluted share $ (0.05) $ (0.12) Total revenues $ 182,383 $ 141,869 (1) EBITDAre $ 55,340 $ 38,7
Slide 8: Summary Pro Forma Operating Results (Unaudited)
Summary Pro Forma Operating Results (Unaudited) 2022 2023 Trailing Twelve Months Ended Pro Forma Operating Data (1) Q2 Q3 Q4 Q1 March 31, 2023 Pro forma room revenue $ 169,513 $ 160,478 $ 153,736 $ 163,089 $ 646,816 Pro forma other hotel operating revenue 18,280 18,118 18,703 19,294 74,395 Pro forma
Slide 9: Adjusted EBITDAre Reconciliation
Adjusted EBITDAre Reconciliation For the Three Months Ended March 31, 2023 2022 Net loss $ (1,970) $ (8,973) Depreciation and amortization 36,908 36,274 Interest expense 20,909 13,439 Interest income (83) (2) Income tax benefit (472) (2,000) EBITDA $ 55,292 $ 38,738 Disposition of assets, net 48 - E
Slide 10: Adjusted FFO Reconciliation
Adjusted FFO Reconciliation For the Three Months Ended March 31, 2023 2022 Net loss $ (1,970) $ (8,973) Preferred dividends (3,970) (3,970) Distributions to and accretion of redeemable non-controlling interests (657) (555) Loss related to non-controlling interests in consolidated joint ventures 680
Slide 11: Reconciliation to Adjusted EBITDAre – By Ownership Interest
Reconciliation to Adjusted EBITDAre – By Ownership Interest (Unaudited) Q1 2023 Summit GIC Other GIC JV Other JVs Combined Pro Rata Wholly-Owned Joint Venture (2) Joint Ventures (2) Pro Rata Adj Pro Rata Adj Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2
Slide 12: Reconciliation to Adjusted FFO – By Ownership Interest
Reconciliation to Adjusted FFO – By Ownership Interest (Unaudited) Q1 2023 Summit GIC Other GIC JV Other JVs Combined Pro Rata Wholly-Owned Joint Venture (4) Joint Ventures (4) Pro Rata Adj Pro Rata Adj Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2022 Q
Slide 13: Full Year 2023 Outlook (Unaudited)
Full Year 2023 Outlook (Unaudited) FYE 2023 Outlook Low High (1) Pro Forma RevPAR $ 117.50 $ 123.00 (1) Pro Forma RevPAR Growth 6.00% 11.00% Adjusted EBITDAre $ 190,400 $ 205,900 Adjusted FFO $ 112,100 $ 128,100 Adjusted FFO per Diluted Unit $ 0.92 $ 1.05 Capital Expenditures, Pro Rata $ 60,000 $ 80
Slide 14: 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 14
Slide 15: Pro Forma Operating Results – By Ownership Interest
Pro Forma Operating Results – By Ownership Interest (Unaudited) Q1 2023 INN Wholly-Owned GIC Joint Venture Other Joint Ventures Pro Forma (61 Hotels) (39 Hotels) (3 Hotels) (103 Hotels) 2023 2022 2023 2022 2023 2022 2023 2022 (1) Pro Forma Operating Data Occupancy 66.5% 62.0% 72.2% 67.5% 86.1% 76.8%
Slide 16: Summary Pro Forma Operating Results (Unaudited)
Summary Pro Forma Operating Results (Unaudited) Pro Forma (103) Hotels - 2023 (1) Jan Feb Mar Q1 Occupancy 60.8% 68.8% 76.9% 68.9% ADR $ 159.11 $ 175.08 $ 178.75 $ 171.63 RevPAR $ 96.82 $ 120.41 $ 137.51 $ 118.18 2022 Variance Occupancy change vs 2022 14.0% 7.3% 2.5% 7.3% ADR change vs 2022 12.2% 14
Slide 17: Summary Same Store Operating Results (Unaudited)
Summary Same Store Operating Results (Unaudited) Same Store (99) Hotels - 2023 (1) Jan Feb Mar Q1 Occupancy 60.8% 68.6% 76.6% 68.7% ADR $ 157.42 $ 172.35 $ 176.33 $ 169.33 RevPAR $ 95.65 $ 118.26 $ 135.11 $ 116.28 2022 Variance Occupancy change vs 2022 14.2% 7.6% 2.2% 7.3% ADR change vs 2022 11.8% 1
Slide 18: Summary Comparable 2019 Portfolio Operating Results
Summary Comparable 2019 Portfolio Operating Results (Unaudited) Comparable (92) Hotels - 2023 (1) Jan Feb Mar Q1 Occupancy 60.0% 68.5% 76.6% 68.4% ADR $ 155.52 $ 170.23 $ 174.79 $ 167.54 RevPAR $ 93.36 $ 116.61 $ 133.97 $ 114.58 2022 Variance Occupancy change vs 2022 12.5% 7.1% 1.9% 6.6% ADR change
Slide 19: Summary Joint Venture Operating Results (Unaudited)
Summary Joint Venture Operating Results (Unaudited) GIC JV (39) Hotels - 2023 (1) Jan Feb Mar Q1 Occupancy 64.7% 71.8% 80.1% 72.2% ADR $ 161.17 $ 179.33 $ 174.52 $ 171.89 RevPAR $ 104.31 $ 128.75 $ 139.84 $ 124.15 2022 Variance Occupancy change vs 2022 12.5% 6.2% 3.7% 7.0% ADR change vs 2022 12.5% 1
Slide 20: 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 20
Slide 21: Capitalization – Total Enterprise Value (Unaudited)
Capitalization – Total Enterprise Value (Unaudited) March 31, December 31, September 30, June 30, March 31, (in thousands, except per share data) 2023 2022 2022 2022 2022 Common Share Price & Dividends At quarter ended $ 7.00 $ 7.22 $ 6.72 $ 7.27 $ 9.96 High during quarter ended $ 8.81 $ 8.75 $ 9.09
Slide 22: Debt Schedule – Part I (Unaudited)
Debt Schedule – Part I (Unaudited) As of March 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 Mi
Slide 23: Debt Schedule – Part II (Unaudited)
Debt Schedule – Part II (Unaudited) As of March 31, 2023 Principal Amount Fixed Debt Variable Debt Effective Interest (amounts in thousands) Outstanding Outstanding Outstanding Rate Total Debt $ 1,477,432 $ 357,807 $ 1,119,625 5.93% Noncontrolling Interests in Joint Ventures (312,991) (9,391) (303,6
Slide 24: Debt Schedule – Part III (Unaudited)
Debt Schedule – Part III (Unaudited) As of March 31, 2023 Pro Rata Debt Maturity Ladder $600 $42 $450 $225 $300 $44 $150 $288 $15 $200 $209 $102 $0 $30 $7 $3 $0 2023 2024 2025 2026 2027 2028 2029+ $400M Senior Revolver $200M Senior Term Loan $225M Senior Term Loan Convertible Senior Notes $200M GIC
Slide 25: 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 25
Slide 26: 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 27: Asset Listing (Unaudited)
Asset Listing (Unaudited) STR STR Hotels Rooms Chain Scale 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
Slide 28: 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 29: Asset Listing (Unaudited)
Asset Listing (Unaudited) STR STR Hotels Rooms Chain Scale Location GIC Joint Venture (51% Ownership) (1) Holiday Inn Express & Suites - Oklahoma City Downtown / Bricktown 1 124 Upper Midscale Urban Hyatt Place - Lubbock 1 125 Upscale Urban Hyatt Place - Oklahoma City / Bricktown 1 134 Upscale Urban
Slide 30: Summit
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