Summit Hotel Properties, Inc. · NYSE:INN
Summit Hotel Properties — Q2 2023 Earnings Presentation
33 slides from Summit Hotel Properties's earnings presentation, Aug 3, 2023
Slide 1: Earnings Release Supplement Second Quarter 2023
EARNINGS RELEASE SUPPLEMENT SECOND QUARTER 2023 (UNAUDITED) AUGUST 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 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 Six Months Ended June 30, June 30, (Amounts in thousands, except per share metrics and statistics) 2023 2022 2023 2022 (unaudited) Net (loss) income attributable to common stockholders $ (753) $ 7,944 $ (5,981) $ (4,435) Net (l
Slide 8: Summary Pro Forma Operating Results (Unaudited)
Summary Pro Forma Operating Results (Unaudited) (Amounts in thousands, except statistics) 2022 2023 Trailing Twelve (1) Months Ended Pro Forma Operating Data Q3 Q4 Q1 Q2 June 30, 2023 Pro forma room revenue $ 157,960 $ 152,776 $ 164,144 $ 173,837 $ 648,717 Pro forma other hotel operating revenue 17,
Slide 9: Adjusted EBITDAre Reconciliation
Adjusted EBITDAre Reconciliation For the Three Months Ended For the Six Months Ended June 30, June 30, (Amounts in thousands) 2023 2022 2023 2022 Net income (loss) $ 890 $ 23,313 $ (1,080) $ 14,340 Depreciation and amortization 37,510 38,058 74,418 74,332 Interest expense 22,248 15,118 43,157 28,557
Slide 10: Adjusted FFO Reconciliation
Adjusted FFO Reconciliation For the Three Months Ended For the Six Months Ended June 30, June 30, 2023 2022 2023 2022 (Amounts in thousands, except per share metrics) Net income (loss) $ 890 $ 23,313 $ (1,080) $ 14,340 Preferred dividends (3,968) (3,968) (7,938) (7,938) Distributions to and accretio
Slide 11: Reconciliation to Adjusted EBITDAre – By Ownership Interest (Q2 2023)
Reconciliation to Adjusted EBITDAre – By Ownership Interest (Unaudited) Q2 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 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2
Slide 12: Reconciliation to Adjusted EBITDAre – By Ownership Interest (YTD 2023)
Reconciliation to Adjusted EBITDAre – By Ownership Interest (Unaudited) YTD 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 YTD 2023 YTD 2022 YTD 2023 YTD 2022 YTD 2023 YTD
Slide 13: Reconciliation to Adjusted FFO – By Ownership Interest (Q2 2023)
Reconciliation to Adjusted FFO – By Ownership Interest (Unaudited) Q2 2023 Summit GIC Other GIC JV Other JVs Combined Pro Rata (Amounts in thousands, except per share metrics) Wholly-Owned Joint Venture (4) Joint Ventures (4) Pro Rata Adj Pro Rata Adj Q2 2023 Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2022
Slide 14: Reconciliation to Adjusted FFO – By Ownership Interest (YTD 2023)
Reconciliation to Adjusted FFO – By Ownership Interest (Unaudited) YTD 2023 Summit GIC Other GIC JV Other JVs Combined Pro Rata (Amounts in thousands, except per share metrics) Wholly-Owned Joint Venture (4) Joint Ventures (4) Pro Rata Adj Pro Rata Adj YTD 2023 YTD 2022 YTD 2023 YTD 2022 YTD 2023 YT
Slide 15: Full Year 2023 Outlook (Unaudited)
Full Year 2023 Outlook (Unaudited) FYE 2023 Outlook (Amounts in thousands, except per share metrics Variance to Prior % Change to Prior and statistics) Low High Midpoint Midpoint Pro Forma RevPAR (1) $ 119.00 $ 121.50 $ 0.00 0.0% Pro Forma RevPAR Growth (1) 6.00% 8.00% -1.50% n/a Adjusted EBITDAre $
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 (Q2 2023)
Pro Forma Operating Results – By Ownership Interest (Unaudited) Q2 2023 INN Wholly-Owned GIC Joint Venture Other Joint Ventures Pro Forma (57 Hotels) (41 Hotels) (3 Hotels) (101 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 (YTD 2023)
Pro Forma Operating Results – By Ownership Interest (Unaudited) YTD 2023 INN Wholly-Owned GIC Joint Venture Other Joint Ventures Pro Forma (57 Hotels) (41 Hotels) (3 Hotels) (101 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 (101) Hotels - 2023 (1) Q1 Apr May Jun Q2 YTD Occupancy 69.5% 74.7% 74.2% 77.5% 75.5% 72.5% ADR $ 174.47 $ 171.07 $ 169.59 $ 164.45 $ 168.33 $ 171.26 RevPAR $ 121.31 $ 127.84 $ 125.87 $ 127.53 $ 127.06 $ 124.20 2022 Variance Occupancy change
Slide 20: Summary Same Store Operating Results (Unaudited)
Summary Same Store Operating Results (Unaudited) Same Store (95) Hotels - 2023 (1) Q1 Apr May Jun Q2 YTD Occupancy 69.2% 74.7% 74.3% 78.0% 75.7% 72.4% ADR $ 170.89 $ 170.13 $ 168.49 $ 164.59 $ 167.70 $ 169.21 RevPAR $ 118.24 $ 127.15 $ 125.27 $ 128.31 $ 126.89 $ 122.59 2022 Variance Occupancy change
Slide 21: Summary Comparable 2019 Portfolio Operating Results (Unaudited)
Summary Comparable 2019 Portfolio Operating Results (Unaudited) Comparable (90) Hotels - 2023 (1) Q1 Apr May Jun Q2 YTD Occupancy 69.1% 74.9% 74.4% 78.2% 75.8% 72.5% ADR $ 170.67 $ 169.96 $ 168.62 $ 164.01 $ 167.49 $ 169.00 RevPAR $ 117.99 $ 127.31 $ 125.49 $ 128.31 $ 127.02 $ 122.53 2022 Variance O
Slide 22: Summary Joint Venture Operating Results (Unaudited)
Summary Joint Venture Operating Results (Unaudited) GIC JV (41) Hotels - 2023 (1) Q1 Apr May Jun Q2 YTD Occupancy 72.6% 75.6% 75.5% 78.3% 76.5% 74.5% ADR $ 175.25 $ 160.50 $ 155.04 $ 152.70 $ 156.03 $ 165.33 RevPAR $ 127.19 $ 121.33 $ 117.09 $ 119.64 $ 119.33 $ 123.24 2022 Variance Occupancy change
Slide 23: 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 23
Slide 24: Capitalization – Total Enterprise Value (Unaudited)
Capitalization – Total Enterprise Value (Unaudited) June 30, March 31, December 31, September 30, June 30, (in thousands, except per share data) 2023 2023 2022 2022 2022 Common Share Price & Dividends At quarter ended $ 6.51 $ 7.00 $ 7.22 $ 6.72 $ 7.27 High during quarter ended $ 7.26 $ 8.81 $ 8.75
Slide 25: Debt Schedule – Part I (Unaudited)
Debt Schedule – Part I (Unaudited) As of June 30, 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 Mil
Slide 26: Debt Schedule – Part II (Unaudited)
Debt Schedule – Part II (Unaudited) As of June 30, 2023 Principal Amount Fixed Debt Variable Debt Effective Interest (amounts in thousands) Outstanding Outstanding Outstanding Rate Total Debt $ 1,466,936 $ 357,378 $ 1,109,558 6.18% Noncontrolling Interests in Joint Ventures (312,961) (9,361) (303,60
Slide 27: Debt Schedule – Part III (Unaudited)
Debt Schedule – Part III (Unaudited) As of June 30, 2023 Pro Rata Debt Maturity Ladder $500 $400 $300 $42 $7 $43 $200 $288 $15 $225 $200 $100 $209 $102 $0 $3 $20 $0 2023 2024 2025 2026 2027 2028 2029+ $400M Senior Revolver $200M Senior Term Loan $225M Senior Term Loan Convertible Senior Notes $200M
Slide 28: 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 28
Slide 29: 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 30: Asset Listing (Unaudited)
Asset Listing (Unaudited) STR STR Hotels Rooms Chain Scale Location INN Wholly-Owned (100% Ownership), (cont.) Staybridge Suites - Denver/Cherry Creek 1 121 Upscale Suburban AC Hotel - Atlanta Downtown 1 255 Upscale Urban Courtyard - Atlanta Downtown 1 150 Upscale Urban Courtyard - Charlotte City Ce
Slide 31: 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 32: 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 33: Summit Hotel Properties
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