Summit Hotel Properties, Inc. · NYSE:INN
Summit Hotel Properties — Investor Presentation (February 2025)
33 slides from Summit Hotel Properties's investor presentation, February 2025
Slide 1: Investor Presentation
Investor Presentation FEBRUARY 2025 Hampton Inn & Suites – Austin Downtown Element – Miami Brickell
Slide 2: 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 3: Summit Hotel Properties is a leading publicly-traded lodging REIT
Summit Hotel Properties (NYSE: INN) is a leading publicly-traded REIT focused on owning lodging assets with efficient operating models primarily in the upscale segment of the lodging industry. 97 14,553 43 Lodging Assets (1) Guestrooms (1) Markets (1) 86% ~$250M Top 50 Markets (2) Recent Transaction
Slide 4: Operating Update
SUMMIT Operating Update 4 AC Hotel by Marriott – Houston Downtown
Slide 5: 2024 Highlights
2024 Highlights Pro forma Occupancy: 74.0% (+1.2%); ADR: $168 (+0.6%); Ongoing Recovery • RevPAR: $124 (+1.8%) of Business Travel • Pro forma RevPAR growth outperformed the STR Total U.S. industry for the 3rd straight year • Select recovering markets achieved 13% RevPAR growth and Urban & Suburban 3
Slide 6: Summit's 2025 Outlook
2025 OUTLOOK Summit’s 2025 Outlook Full Year 2024 Low High Pro Forma RevPAR Growth (1) 1.00% 3.00% Adjusted EBITDA $184,000 $198,000 Adjusted FFO $111,900 $125,600 Adjusted FFO per Diluted Unit $0.90 $1.00 Capital Expenditures, Pro Rata $65,000 $85,000 Residence Inn – Steamboat Springs 1. All pro fo
Slide 7: Well-positioned for outperformance with recovery opportunity in several urban markets
Well-positioned for outperformance with recovery opportunity in several urban markets Summit continues to benefit from its exposure to several urban markets that have been slower to recover to pre-pandemic levels. In aggregate, these five markets had Q4 and FY 2024 RevPAR growth of 15% and 13%, resp
Slide 8: Intense focus on expense management despite modest RevPAR growth
Intense focus on expense management despite modest RevPAR growth T12 Hotel EBITDA Margin Change -7 bps FYE 2024 FYE 2023 -120 bps 35.6% 35.7% -80 bps 33.6% 32.4% -70 bps 29.1% 28.3% 28.1% 27.4% (1) (2) (3) Summit Select-Service All Peers Full-Service Peers Peers Courtyard – New Haven at Yale 1. Summ
Slide 9: Urban & weekday demand driving current phase of lodging recovery
Urban & weekday demand driving % of Portfolio by 4% 11% STR Location (1) current phase of lodging recovery Urban 12% Opportunity exists for continued further RevPAR acceleration and improvement in Suburban 48% weekday performance as the urban location type is driven by growth in business Airport tra
Slide 10: 2024 Acquisition of Two-Hotel Portfolio for $96 Million through JV with GIC
2024 Acquisition of Two-Hotel Portfolio for $96 Million through JV with GIC Investment Highlights • Attractive going-in yield (8.8% NOI capitalization rate based on 2024E) Hampton Inn – Boston Logan Airport • Accretive to RevPAR, Hotel EBITDA Margin, and EBITDA per key profiles • Significant discoun
Slide 11: Recent transaction activity accretive to earnings, portfolio quality, and growth profile
Recent transaction activity accretive to earnings, portfolio quality, and growth profile Recent acquisitions have a positive NOI yield spread of nearly 400 bps and a RevPAR premium of nearly 70% compared to recent dispositions Date Year 1 Year 1 Recent Acquisitions Rooms Price (1) Cap Rate (2) Acqui
Slide 12: Investment Thesis
SUMMIT Investment Thesis 12 Canopy by Hilton – Dallas Frisco Station
Slide 13: Proven Investment Strategy
Proven Investment Strategy Efficient operating model & best-in- 01 class platform drives profitability Premier portfolio with broad geographic 02 diversification and concentration in high growth sun belt markets Targeted capital allocation strategy 03 with proven track record of external growth and
Slide 14: Efficient operating model and best-in-class platform drives profitability
Efficient operating model and best-in-class platform drives profitability 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 In-house
Slide 15: Efficient operating model and best-in-class platform drives profitability
Efficient operating model and best-in-class platform drives profitability • 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 wit
Slide 16: Cumulative RevPAR Growth
Efficient operating model Cumulative RevPAR Growth: Summit and best-in-class platform Pro Forma Portfolio vs. STR Upscale (1) drives profitability Summit STR Upscale 60% 3.8% Summit has a track record of outperformance with CAGR cumulative RevPAR growth exceeding the STR Upscale 40% chain scale benc
Slide 17: Efficient operating model and best-in-class platform drives profitability
Efficient operating model and best-in-class platform drives profitability T12 Hotel EBITDA Margin +320 bps +730 bps +820 bps 35.6% 32.4% 28.3% 27.4% (1) (2) (3) Summit Select-Service All Peers Full-Service Peers Peers Courtyard – Atlanta Downtown 1. Summit based on the pro forma twelve-month financi
Slide 18: Premier portfolio with broad geographic diversification & concentration in high growth sun belt markets
Premier portfolio with broad geographic diversification & concentration in high growth sun belt markets 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 Minn
Slide 19: Lodging industry set up for favorable supply & demand dynamics
Lodging industry set up for favorable supply & demand dynamics for the Summit Portfolio Chain foreseeable future Scale Breakdown (2) Muted Total US supply growth expected to average <1% from 2025-2028, ~100 bps below the long-run average 7% CBRE (1) Total US Upscale 15% Supply Demand Supply Demand F
Slide 20: Premier portfolio with industry-leading brands offering diverse accommodations
Premier portfolio with industry-leading brands offering diverse and distinctive accommodations and experiences 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,
Slide 21: Capital Allocation
SUMMIT Capital Allocation 21 Canopy by Hilton – New Orleans Downtown
Slide 22: Targeted capital allocation strategy with proven track record of transaction driven value creation
Targeted capital allocation strategy with proven track record of transaction driven value creation Acquisitions • Locations in “Markets that Matter” with Joint Venture • Own 41 hotels totaling 5,733 guestrooms with a favorable supply/demand dynamics and multiple well-respected global real estate inv
Slide 23: Targeted capital allocation strategy with proven track record of transaction driven value creation
Targeted capital allocation strategy with proven track record of transaction driven value creation 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) Acquis
Slide 24: GIC Joint Venture Overview and Investment Highlights
Joint Venture Formed in 2019 • 51% Summit / 49% GIC GIC Joint Venture Overview • Summit as General Partner & Asset Manager Invested $275MM in Year 1 and Investment Highlights • • Acquired Hampton Inn & Suites Silverthorne for $26MM Acquired 4-Hotel Portfolio for $249MM Six-Hotel Portfolio Contribute
Slide 25: Targeted capital allocation strategy with proven track record of external growth and capital recycling
Targeted capital allocation strategy with proven track record of external growth and capital recycling RECENT Summit AC / Element Onera Recent Recent Pro Forma ACQUISITION Same Store (1) Miami Brickell Fredericksburg Acquisitions Dispositions Portfolio HIGHLIGHTS # of Assets 90 2 1 4 10 97 # of Gues
Slide 26: Strategic CapEx Investment
Strategic CapEx Recently Completed Renovations Ongoing & Upcoming Renovations Investment Courtyard Grapevine DFW Airport Courtyard New Haven at Yale Courtyard Charlotte City Center Courtyard Fort Lauderdale Beach Embassy Suites Tucson Fairfield Inn & Suites Louisville Downtown Summit’s in-house desi
Slide 27: Recent Renovations
Recent Renovations SpringHill Suites – Dallas Downtown Hotel Indigo – Asheville Downtown 27 Hyatt Place – Denver Park Meadows Residence Inn – Portland Hillsboro
Slide 28: Balance Sheet
SUMMIT Balance Sheet 28 Hotel Indigo – Asheville Downtown
Slide 29: Well-positioned balance sheet & liquidity profile
Well-positioned balance sheet Pro Forma Capital Structure (1,2) & liquidity profile Net Debt: $1.0 Billion 14% Common Equity: $0.8 Billion Pro Rata Preferred Equity: $0.3 Billion Capitalization 49% Pro Forma Debt Maturity Schedule (1) 37% $2.1B Unsecured JV MR1 JV MR3 B of A Revolver Credit Facility
Slide 30: Balance sheet well-positioned for current environment
Balance sheet well-positioned Limited Variable- Rate Debt Exposure (1) for current environment Nearly 80% of pro rata debt and 78% preferred with fixed interest rates Total variable 22% Exceptional Liquidity Profile Minimal Near-Term Debt debt Among the Industry’s Best (1,2,3,4) Maturities (1,3) Tot
Slide 31: Appendix
SUMMIT Appendix 31 Embassy Suites – Amarillo Downtown
Slide 32: Experienced Leadership Driving Success
Experienced Leadership Driving Success Jonathan Stanner 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 Executiv
Slide 33: Summit Hotel Properties
SUMMIT HOTEL PROPERTIES
Summit Hotel Properties — Investor Presentation (February 2025) on 6ix