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SUMMIT HOTEL PROPERTIES REPORTS SECOND QUARTER 2025 RESULTS

1. INN reported a net loss of $1.6M for Q2 2025. 2. RevPAR decreased 3.8% compared to Q2 2024, signaling increased price sensitivity. 3. The company closed two debt financings, enhancing liquidity to $310M. 4. 3.6M shares were repurchased at an average price of $4.30 each. 5. Onera Fredericksburg expansion aims for sustained revenue growth with new units.

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FAQ

Why Neutral?

Despite a loss, liquidity and share repurchases indicate management confidence.

How important is it?

Liquidity and share buybacks could stabilize stock value amid declining revenues.

Why Short Term?

Short-term volatility expected due to declining RevPAR and ongoing macro uncertainty.

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SPGHLTMAR
Second Quarter Operating Income of $22.7 Million; AFFO of $32.7 Million or $0.27 per ShareRepurchased 3.6 Million Shares for $15.4 Million, an Average of $4.30 per ShareCompleted Two Significant Debt Financings to Extend Maturity Dates and Enhance Corporate Liquidity, /PRNewswire/ -- Summit Hotel Properties, Inc. (NYSE: INN) (the "Company"), today announced results for the three and six months ended June 30, 2025. Monolith Interior Monolith Exterior Diamond Unit Great Lodge "Despite a challenging operating backdrop in the second quarter, we continued to successfully execute on a number of key strategic priorities. RevPAR index, our best measure of market share, increased nearly 150 basis points to 115% during the quarter and year-to-date operating expenses have increased a mere 1.5 percent as we continue to effectively manage expenses and benefit from the efficient operating model of our hotel portfolio. While RevPAR in our same store portfolio declined 3.6 percent during the second quarter, this was significantly influenced by difficult comparisons to robust special event driven demand that benefited the second quarter of last year. Overall demand across the Company's portfolio remains stable as absolute occupancy in the second quarter approached record highs. Our portfolio of high quality, well located hotels is in excellent physical condition and we believe remains well positioned for longer-term, outsized growth," said Jonathan P. Stanner, President and Chief Executive Officer. "During the quarter, we also continued to strengthen our balance sheet with the closing of two additional financings, with improved pricing that will supplement our future free cash flow and earnings profiles. With these closings and the in-place delayed draw term loan to fund the repayment of our convertible notes early next year, we now effectively have no debt maturities until 2028 and over $310 million of corporate liquidity. Finally, in April, our Board of Directors approved a $50 million share repurchase program, of which we utilized $15.4 million in the second quarter to repurchase 3.6 million common shares at an average price of $4.30 per share. These well-executed repurchases represent an 15% discount to the current trading price," continued Mr. Stanner. Second Quarter 2025 Summary Net Loss: Net loss attributable to common stockholders was $1.6 million, or $0.02 per diluted share, compared to net income of $30.8 million, or $0.23 per diluted share, for the second quarter of 2024. Pro forma RevPAR: Pro forma RevPAR decreased 3.8 percent to $128.79 compared to the second quarter of 2024. Pro forma ADR decreased 3.3 percent to $165.70 compared to the same period in 2024, and pro forma occupancy decreased 0.6 percent to 77.7 percent. Same Store RevPAR: Same store RevPAR decreased 3.6 percent to $128.07 compared to the second quarter of 2024. Same store ADR decreased 3.3 percent to $165.04, and same store occupancy decreased 0.4 percent to 77.6 percent. Pro Forma Hotel EBITDA(1): Pro forma hotel EBITDA decreased to $68.4 million from $75.7 million in the same period in 2024. Pro forma hotel EBITDA margin contracted approximately 266 basis points to 35.5 percent. Same Store Hotel EBITDA(1): Same store hotel EBITDA decreased to $65.8 million from $73.1 million in the same period in 2024. Same store hotel EBITDA margin contracted approximately 289 basis points to 35.2 percent. Adjusted EBITDAre(1): Adjusted EBITDAre decreased to $50.9 million from $55.9 million in the second quarter of 2024. Adjusted FFO(1): Adjusted FFO decreased to $32.7 million, or $0.27 per diluted share, compared to $36.4 million, or $0.29 per diluted share, in the second quarter of 2024. Year-to-Date 2025 Summary Net Loss: Net loss attributable to common stockholders was $6.3 million, or $0.06 per diluted share, compared to net income of $28.7 million, or $0.21 per diluted share, in the same period of 2024. Pro forma RevPAR: Pro forma RevPAR decreased 1.5 percent to $126.90 compared to the same period of 2024. Pro forma ADR decreased 1.3 percent to $169.22, and pro forma occupancy decreased 0.2 percent to 75.0 percent. Same Store RevPAR: Same store RevPAR decreased 1.1 percent to $127.17 compared to the same period of 2024. Same store ADR decreased 1.3 percent to $169.36, and same store occupancy increased 0.2 percent to 75.1 percent. Pro Forma Hotel EBITDA(1): Pro forma hotel EBITDA decreased to $134.0 million from $142.2 million, and pro forma hotel EBITDA margin contracted 161 basis points to 35.5 percent. Same Store Hotel EBITDA(1): Same store hotel EBITDA decreased to $131.0 million from $138.8 million, and same store hotel EBITDA margin contracted 172 basis points to 35.6 percent. Adjusted EBITDAre(1): Adjusted EBITDAre decreased to $95.9 million from $104.7 million in the same period of 2024. Adjusted FFO(1): Adjusted FFO decreased to $60.1 million, or $0.49 per diluted share, compared to $66.4 million, or $0.54 per diluted share, in the same period of 2024. The Company's results for the three and six months ended June 30, 2025 and 2024 are as follows (in thousands, except per share amounts and metrics): For the Three MonthsEnded June 30, For the Six MonthsEnded June 30, 2025 2024 2025 2024 Net (loss) income attributable to common stockholders $     (1,612) $    30,849 $     (6,296) $    28,733 Net (loss) income per diluted share $       (0.02) $        0.23 $       (0.06) $        0.21 Total revenues $  192,917 $  193,903 $  377,395 $  382,045 EBITDAre (1) $    61,050 $    69,755 $  119,499 $  130,954 Adjusted EBITDAre (1) $    50,919 $    55,920 $    95,926 $  104,721 FFO (1) $    26,886 $    34,934 $    50,082 $    60,422 Adjusted FFO (1) $    32,707 $    36,370 $    60,066 $    66,366 FFO per diluted share and unit (1) $        0.22 $        0.28 $        0.40 $        0.49 Adjusted FFO per diluted share and unit (1) $        0.27 $        0.29 $        0.49 $        0.54 Pro Forma (2) RevPAR $    128.79 $    133.94 $    126.90 $    128.89 RevPAR Contraction (3.8) % (1.5) % Hotel EBITDA $    68,421 $    75,664 $  134,026 $  142,164 Hotel EBITDA Margin 35.5 % 38.1 % 35.5 % 37.1 % Hotel EBITDA Margin Change    (266) bps    (161) bps Same Store (3) RevPAR $    128.07 $    132.89 $    127.17 $    128.65 RevPAR Contraction (3.6) % (1.1) % Hotel EBITDA $    65,811 $    73,087 $  130,987 $  138,821 Hotel EBITDA Margin 35.2 % 38.1 % 35.6 % 37.3 % Hotel EBITDA Margin Change    (289) bps    (172) bps (1) See tables later in this press release for a discussion and reconciliation of net (loss) income to non-GAAP financial measures, including earnings before interest, taxes, depreciation, and amortization ("EBITDA"), EBITDAre, adjusted EBITDAre, funds from operations ("FFO"), FFO per diluted share and unit, adjusted FFO ("AFFO"), and AFFO per diluted share and unit, as well as a reconciliation of operating income to hotel EBITDA. See "Non-GAAP Financial Measures" at the end of this release. (2) Unless stated otherwise in this release, all pro forma information includes operating and financial results for 97 hotels owned as of June 30, 2025, as if each hotel had been owned by the Company since January 1, 2024 and remained open for the entirety of the reporting period. As a result, all pro forma information includes operating and financial results for hotels acquired since January 1, 2024, which may include periods prior to the Company's ownership. Pro forma and non-GAAP financial measures are unaudited. (3) All same store information includes operating and financial results for 95 hotels owned as of January 1, 2024 and at all times during the three and six months ended June 30, 2025, and 2024. Capital Markets and Balance SheetNCI Term Loan RefinancingIn July 2025, the Company, together with its joint venture partner, closed a $400.0 million senior unsecured term loan (the "2025 GIC Joint Venture Term Loan") to refinance the previous GIC joint venture term loan that was scheduled to mature in January 2026. The 2025 GIC Joint Venture Term Loan has an initial maturity date of July 2028 and can be extended for two 12-month periods at the Company's option, subject to certain conditions, for a fully extended maturity date of July 2030.The 2025 GIC Joint Venture Term Loan provides for an interest rate equal to SOFR plus 235 basis points, which represents a 50 basis point reduction from the previous loan.Brickell Mortgage LoanIn May 2025, the Company, together with its joint venture partner, closed on a $58.0 million mortgage loan (the "Brickell Mortgage Loan") secured by the dual-branded 264-guestroom AC Hotel by Marriott and Element Hotel Miami Brickell. The Brickell Mortgage Loan proceeds were used to repay the existing $45.4 million mortgage loan, that was scheduled to mature in June 2025, and for other general corporate purposes.The Brickell Mortgage Loan provides for an interest rate equal to SOFR plus 260 basis points, which represents a 40 basis point reduction from the previous loan. Payments on the Brickell Mortgage Loan are interest-only for the life of the loan, subject to certain financial requirements. The Brickell Mortgage Loan will mature on May 2028 and can be extended for two 12-month periods at the Company's option, subject to certain conditions, for a fully extended maturity date of May 2030.Subsequent to the closing of the Brickell Mortgage Loan, the Company entered into a $58.0 million interest rate swap to fix SOFR until May 2028. Pursuant to the interest rate swap, the Company will pay a fixed rate of 3.57 percent.As a result of these refinancings, as well as the $275 million delayed draw term loan (the "Delayed Draw Term Loan") that closed in the first quarter that the Company intends to utilize to retire the outstanding $287.5 million 1.50 percent Convertible Senior Notes that mature in February 2026, the Company's average length to maturity will increase to nearly four years on a pro forma basis, including extension options, and the Company will have no debt maturities until 2028.On a pro rata basis as of June 30, 2025, the Company had the following outstanding indebtedness and liquidity available: Outstanding debt of $1.1 billion with a weighted average interest rate of 4.60 percent. After giving effect to interest rate derivative agreements, $827.0 million, or 75 percent, of our outstanding debt had a fixed interest rate, and $276.5 million, or 25 percent, had a variable interest rate. Unrestricted cash and cash equivalents of $33.1 million. Total liquidity of over $310 million, including unrestricted cash and cash equivalents and revolving credit facility availability. Share Repurchase ProgramDuring the second quarter, the Company repurchased 3.6 million common shares under its share repurchase program for an aggregate purchase price of $15.4 million, or an average of approximately $4.30 per share. As of August 5, 2025, approximately $34.6 million remained available for repurchase under this program.Common and Preferred Dividend DeclarationOn August 1, 2025, the Company declared a quarterly cash dividend of $0.08 per share on its common stock and per common unit of limited partnership interest in Summit Hotel OP, LP. The quarterly dividend of $0.08 per share represents an annualized dividend yield of 6.3 percent, based on the closing price of shares of the common stock on August 4, 2025.In addition, the Board of Directors declared a quarterly cash dividend of: $0.390625 per share on its 6.25% Series E Cumulative Redeemable Preferred Stock $0.3671875 per share on its 5.875% Series F Cumulative Redeemable Preferred Stock $0.328125 per unit on its 5.25% Series Z Cumulative Perpetual Preferred Units The dividends are payable on August 29, 2025 to holders of record as of August 15, 2025.Onera Fredericksburg ExpansionDuring the quarter, the Company, together with its joint venture partner, completed the expansion of Onera Fredericksburg, its luxury landscape hotel located in the heart of Texas Hill Country. The project added 23 custom-built, hard-sided, and climate-controlled units, increasing the property's total unit count to 35. The expansion includes: 15 luxury units that build on the property's signature architectural innovation and showcase unobstructed views of the surrounding Hill Country landscape. New unit concepts include the Cypress Lodge, Diamond, Monolith, Post Oak, Quonset, Spiral, and Winecup, each designed to offer a unique and immersive guest experience. Units sleep between two and six guests and feature private hot tubs, with select units offering private plunge pools. The Great Lodge, an eight-room lodge consisting of one-bedroom suites, each with a private hot tub, that can be booked individually or as a full block. The lodge features a private pool, sauna, and a well-appointed communal great room ideal for group getaways, family gatherings, and corporate retreats. For the six months ending June 30, 2025, prior to the expansion, Onera Fredericksburg generated a RevPAR of nearly $360 and a hotel EBITDA margin of nearly 50%. The Company expects that with the expansion, Onera Fredericksburg will continue to generate an unlevered yield on cost in the low to mid-teens.2025 OutlookWhile we remain confident in the long-term fundamentals in our portfolio, near-term results are being negatively affected by increased price sensitivity and continued macroeconomic volatility. This has created a more uncertain operating environment and a wider range of potential results than we typically observe at the midpoint of the year. Based on actual results for the first half of the year and recent portfolio trends, our performance is currently tracking modestly below the lower end of the guidance ranges we provided as part of our year-end 2024 earnings report on February 24, 2025, for full year Adjusted EBITDAre, Adjusted FFO and Adjusted FFO per share. We expect capital expenditures for full year 2025 of $60 million to $65 million on a pro rata basis.Second Quarter 2025 Earnings Conference CallThe Company will conduct its quarterly conference call on August 6, 2025 at 9:00 AM ET. To access the conference call, please pre-register using this link. Registrants will receive a confirmation with dial-in details. A live webcast of the conference call can be accessed using this link. A replay of the webcast will be available in the Investors section of the Company's website, www.shpreit.com, until October 31, 2025. Supplemental DisclosuresIn conjunction with this press release, the Company has furnished a financial supplement with additional disclosures on its website. Visit www.shpreit.com for more information. The Company has no obligation to update any of the information provided to conform to actual results or changes in portfolio, capital structure, or future expectations.About Summit Hotel PropertiesSummit Hotel Properties, Inc. is a publicly traded real estate investment trust focused on owning premium-branded lodging facilities with efficient operating models primarily in the upscale segment of the lodging industry. As of August 5, 2025, the Company's portfolio consisted of 97 assets, 53 of which are wholly owned, with a total of 14,577 guestrooms located in 25 states.For additional information, please visit the Company's website, www.shpreit.com, and follow on X at @SummitHotel_INN.Forward-Looking StatementsThis press release contains statements that are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are generally identifiable by use of forward-looking terminology such as "may," "will," "should," "potential," "intend," "expect," "seek," "anticipate," "estimate," "approximately," "believe," "could," "project," "predict," "forecast," "continue," "plan," "likely," "would" or other similar words or expressions. Forward-looking statements are based on certain assumptions and can include future expectations, future plans and strategies, financial and operating projections, or other forward-looking information. Examples of forward-looking statements include the following: the Company's ability to realize growth from the deployment of renovation capital; projections of the Company's revenues and expenses, capital expenditures or other financial items; descriptions of the Company's plans or objectives for future operations, acquisitions, dispositions, financings, redemptions or services; forecasts of the Company's future financial performance and potential increases in average daily rate, occupancy, RevPAR, room supply and demand, EBITDAre, Adjusted EBITDAre, FFO and AFFO; the Company's outlook with respect to pro forma RevPAR, pro forma RevPAR growth, RevPAR, RevPAR growth, AFFO, AFFO per diluted share and unit and renovation capital deployed; and descriptions of assumptions underlying or relating to any of the foregoing expectations regarding the timing of their occurrence. These forward-looking statements are subject to various risks and uncertainties, not all of which are known to the Company and many of which are beyond the Company's control, which could cause actual results to differ materially from such statements. These risks and uncertainties include, but are not limited to, the state of the U.S. economy, supply and demand in the hotel industry, and other factors as are described in greater detail in the Company's filings with the Securities and Exchange Commission ("SEC"). Unless legally required, the Company disclaims any obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.For information about the Company's business and financial results, please refer to the "Management's Discussion and Analysis of Financial Condition and Results of Operations" and "Risk Factors" sections of the Company's Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC, and its quarterly and other periodic filings with the SEC. The Company undertakes no duty to update the statements in this release to conform the statements to actual results or changes in the Company's expectations. Summit Hotel Properties, Inc. Consolidated Balance Sheets (In thousands) June 30, 2025 December 31, 2024 (Unaudited) ASSETS Investments in lodging property, net $                 2,722,459 $                 2,746,765 Investment in lodging property under development — 7,617 Assets held for sale, net — 1,225 Cash and cash equivalents 39,490 40,637 Restricted cash 8,734 7,721 Right-of-use assets, net 32,933 33,309 Trade receivables, net 22,554 18,625 Prepaid expenses and other 14,197 9,580 Deferred charges, net 10,468 6,460 Other assets 17,335 24,291 Total assets $                 2,868,170 $                 2,896,230 LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTSAND EQUITY Liabilities: Debt, net of debt issuance costs $                 1,425,799 $                 1,396,710 Lease liabilities, net 24,763 24,871 Accounts payable 7,285 7,450 Accrued expenses and other 81,142 82,153 Total liabilities 1,538,989 1,511,184 Redeemable non-controlling interests 50,219 50,219 Total stockholders' equity 895,146 909,545 Non-controlling interests 383,816 425,282 Total equity 1,278,962 1,334,827 Total liabilities, redeemable non-controlling interests and equity $                 2,868,170 $                 2,896,230 Summit Hotel Properties, Inc. Consolidated Statements of Operations (In thousands, except per share amounts) (Unaudited) For the Three MonthsEnded June 30, For the Six MonthsEnded June 30, 2025 2024 2025 2024 Revenues: Room $   170,599 $   173,025 $   334,330 $   340,456 Food and beverage 11,195 10,069 22,185 20,902 Other 11,123 10,809 20,880 20,687 Total revenues 192,917 193,903 377,395 382,045 Expenses: Room 39,166 38,044 75,298 74,017 Food and beverage 8,388 7,639 16,379 15,841 Other lodging property operating expenses 58,943 57,470 115,865 113,731 Property taxes, insurance and other 13,706 13,287 27,017 27,572 Management fees 4,411 4,434 8,906 9,331 Depreciation and amortization 37,259 36,458 74,489 73,257 Corporate general and administrative 8,280 8,704 16,851 17,015 Total expenses 170,153 166,036 334,805 330,764 (Loss) gain on disposal of assets, net (80) 28,342 (79) 28,417 Operating income 22,684 56,209 42,511 79,698 Other income (expense): Interest expense (20,628) (20,830) (40,584) (42,412) Interest income 301 565 577 1,023 Gain on extinguishment of debt — 3,000 — 3,000 Other income, net 858 2,129 2,088 2,814 Total other expense, net (19,469) (15,136) (37,919) (35,575) Income from continuing operations before income taxes 3,215 41,073 4,592 44,123 Income tax expense (1,178) (2,375) (1,932) (2,592) Net income 2,037 38,698 2,660 41,531 Less - (Loss) income attributable to non-controlling interests (976) 3,224 (296) 3,546 Net income attributable to Summit Hotel Properties, Inc. beforepreferred dividends 3,013 35,474 2,956 37,985 Less - Distributions to and accretion of redeemable non-controllinginterests (657) (657) (1,314) (1,314) Less - Preferred dividends (3,968) (3,968) (7,938) (7,938) Net (loss) income attributable to common stockholders $      (1,612) $     30,849 $      (6,296) $     28,733 (Loss) income per common share: Basic $        (0.02) $          0.29 $        (0.06) $          0.27 Diluted $        (0.02) $          0.23 $        (0.06) $          0.21 Weighted-average common shares outstanding: Basic 107,633 105,918 107,820 105,819 Diluted 107,633 149,451 107,820 149,112 Summit Hotel Properties, Inc. Reconciliation of Net Income to Non-GAAP Measures - Funds From Operations (Unaudited) (In thousands, except per share and unit amounts) For the Three MonthsEnded June 30, For the Six MonthsEnded June 30, 2025 2024 2025 2024 Net income $        2,037 $     38,698 $        2,660 $     41,531 Preferred dividends (3,968) (3,968) (7,938) (7,938) Distributions to and accretion of redeemable non-controllinginterests (657) (657) (1,314) (1,314) Loss (income) related to non-controlling interests in consolidatedjoint ventures 769 1,375 (514) 737 Net (loss) income applicable to common shares and Common Units (1,819) 35,448 (7,106) 33,016 Real estate-related depreciation 36,694 35,266 73,357 70,869 Loss (gain) on disposal of assets and other dispositions, net 80 (28,342) 79 (28,417) FFO adjustments related to non-controlling interests in consolidatedjoint ventures (8,069) (7,438) (16,248) (15,046) FFO applicable to common shares and Common Units 26,886 34,934 50,082 60,422 Amortization of deferred financing costs 1,677 1,621 3,350 3,240 Amortization of franchise fees 175 161 350 325 Amortization of intangible assets, net 262 911 524 1,822 Equity-based compensation 2,789 2,635 4,705 4,483 Debt transaction costs 15 17 15 581 Gain on extinguishment of debt — (3,000) — (3,000) Non-cash interest income (1) — (133) — (266) Non-cash lease expense, net 133 149 266 222 Casualty losses (gains), net 430 (607) 724 (881) Deferred tax expense (benefit) 843 — 1,168 (3) Other — 50 — 362 AFFO adjustments related to non-controlling interests inconsolidated joint ventures (503) (368) (1,118) (941) AFFO applicable to common shares and Common Units $     32,707 $     36,370 $     60,066 $     66,366 FFO per share of common share/Common Unit $         0.22 $         0.28 $         0.40 $         0.49 AFFO per common share/Common Unit $         0.27 $         0.29 $         0.49 $         0.54 Weighted-average diluted common shares/Common Units 123,125 123,834 123,742 123,664 (1) Non-cash interest income relates to the amortization of the discount on a note receivable. The discount on the note receivable was recorded at inception of the related loan based on the estimated value of the embedded purchase option in the note receivable. Summit Hotel Properties, Inc. Reconciliation of Weighted Average Diluted Common Shares (Unaudited) (In thousands) For the Three MonthsEnded June 30, For the Six MonthsEnded June 30, 2025 2024 2025 2024 Weighted average common shares outstanding - diluted 107,633 149,451 107,820 149,112 Adjusted for: Non-GAAP adjustment for restricted stock awards (1) 2,483 — 2,393 — Non-GAAP adjustment for dilutive effects of Common Units (2) 13,009 — 13,529 — Non-GAAP adjustment for dilutive effect of shares of commonstock issuable upon conversion of convertible debt (3) — (25,617) — (25,448) Non-GAAP weighted diluted share of common stock and Common Units (3) 123,125 123,834 123,742 123,664 (1) The weighted-average diluted shares of Common Stock and Common Units used to calculate FFO and AFFO per share of Common Stock and Common Units for the three months ended June 30, 2025 and 2024 includes the dilutive effect of our outstanding restricted stock awards. These shares were excluded from our weighted-average shares outstanding used to calculate net loss per share because they would have been antidilutive. (2) The Company includes the outstanding OP units issued by Summit Hotel OP, LP, the Company's operating partnership, held by limited partners other than the Company because the OP units are redeemable for cash or, at the Company's option, shares of the Company's common stock on a one-for-one basis. (3) The weighted-average shares of Common Stock and Common Units used to calculate FFO and AFFO per share of Common Stock and Common Unit for the three and six months ended June 30, 2025 and 2024 exclude the potential dilution related to our Convertible Notes as we intend to settle the principal value of the Convertible Notes in cash. Summit Hotel Properties, Inc. Reconciliation of Net Income to Non-GAAP Measures - EBITDAre (Unaudited) (In thousands)  For the Three MonthsEnded June 30, For the Six MonthsEnded June 30, 2025 2024 2025 2024 Net income $        2,037 $     38,698 $        2,660 $     41,531 Depreciation and amortization 37,259 36,458 74,489 73,257 Interest expense 20,628 20,830 40,584 42,412 Interest income on cash deposits (132) (264) (245) (421) Income tax expense 1,178 2,375 1,932 2,592 EBITDA 60,970 98,097 119,420 159,371 Loss (gain) on disposal of assets and other dispositions, net 80 (28,342) 79 (28,417) EBITDAre 61,050 69,755 119,499 130,954 Amortization of key money liabilities (129) (121) (258) (242) Equity-based compensation 2,789 2,635 4,705 4,483 Debt transaction costs 15 17 15 581 Gain on extinguishment of debt — (3,000) — (3,000) Non-cash interest income (1) — (133) — (266) Non-cash lease expense, net 133 149 266 222 Casualty losses (gains), net 430 (607) 724 (881) Other — 50 — 362 Loss (income) related to non-controlling interests in consolidatedjoint ventures 769 1,375 (514) 737 Adjustments related to non-controlling interests in consolidated jointventures (14,138) (14,200) (28,511) (28,229) Adjusted EBITDAre $     50,919 $     55,920 $     95,926 $   104,721 (1) Non-cash interest income relates to the amortization of the discount on a note receivable. The discount on the note receivable was recorded at inception of the related loan based on the estimated fair value of the embedded purchase option in the note receivable. Summit Hotel Properties, Inc. Pro Forma Hotel Operating Data (Unaudited) (Dollars in thousands) For the Three MonthsEnded June 30, For the Six MonthsEnded June 30, Pro Forma Operating Data: (1) 2025 2024 2025 2024 Pro forma room revenue $  170,599 $  177,392 $  334,330 $  341,396 Pro forma other hotel operations revenue 22,318 21,047 43,065 41,535 Pro forma total revenues 192,917 198,439 377,395 382,931 Pro forma total hotel operating expenses 124,496 122,775 243,369 240,767 Pro forma hotel EBITDA $  68,421 $  75,664 $  134,026 $  142,164 Pro forma hotel EBITDA Margin 35.5 % 38.1 % 35.5 % 37.1 % Reconciliations of Non-GAAP financial measures to comparable GAAP financial measures Revenue: Total revenues $  192,917 $  193,903 $  377,395 $  382,045 Total revenues - acquisitions — 6,556 — 10,631 Total revenues - dispositions — (2,020) — (9,745) Pro forma total revenues (1) 192,917 198,439 377,395 382,931 Hotel Operating Expenses: Hotel operating expenses $  124,614 $  120,874 $  243,465 $  240,492 Hotel operating expenses - acquisitions — 3,979 — 7,288 Hotel operating expenses - dispositions (118) (2,078) (96) (7,013) Pro forma hotel operating expense (1) 124,496 122,775 243,369 240,767 Hotel EBITDA: Operating income 22,684 56,209 42,511 79,698 Loss (gain) on disposal of assets and other dispositions, net 80 (28,342) 79 (28,417) Corporate general and administrative 8,280 8,704 16,851 17,015 Depreciation and amortization 37,259 36,458 74,489 73,257 Hotel EBITDA 68,303 73,029 133,930 141,553 Hotel EBITDA - acquisitions (2) (2,610) — (3,039) — Hotel EBITDA - dispositions (3) 118 58 96 (2,732) Same Store hotel EBITDA 65,811 73,087 130,987 138,821 Hotel EBITDA - acquisitions 2,610 2,577 3,039 3,343 Pro forma hotel EBITDA (1) $  68,421 $  75,664 $  134,026 $  142,164 (1) Unaudited pro forma information includes operating results for 97 hotels owned as of June 30, 2025, as if all such hotels had been owned by the Company since January 1, 2024. For hotels acquired by the Company after January 1, 2024 (the "Acquired Hotels"), the Company has included in the pro forma information the financial results of each of the Acquired Hotels for the period from January 1, 2024, to June 30, 2025. The financial results for the Acquired Hotels include information provided by the third-party owner of such Acquired Hotel prior to purchase by the Company and have not been audited or reviewed by our auditors or adjusted by us. For any hotels sold by the Company after January 1, 2024 (the "Disposed Hotels"), the Company excludes the financial results of each of the Disposed Hotels from January 1, 2024 to the date the Disposed Hotels were sold by the Company in determining pro forma total revenues and pro forma hotel operating expenses. The pro forma information is included to enable comparison of results for the current reporting period to results for the comparable period of the prior year and are not indicative of future results. (2) For any hotels acquired by the Company after January 1, 2024, the Company has excluded the financial results of each of the Acquired Hotels for the period the Acquired Hotels were purchased by the Company to June 30, 2025 (the "Acquisition Period") in determining same-store hotel EBITDA. (3) For hotels sold by the Company between January 1, 2024, and June 30, 2025, the Company has excluded the financial results of each of the Disposed Hotels for the period beginning on January 1, 2024, and ending on the date the Disposed Hotels were sold by the Company (the "Disposition Period") in determining same-store hotel EBITDA. Summit Hotel Properties, Inc. Pro Forma Hotel Operating Data (Unaudited) (In thousands, except operating statistics) 2024 2025 Trailing Twelve Months Ended Pro Forma Operating Data: (1) Q3 Q4 Q1 Q2 June 30, 2025 Pro forma room revenue $       162,848 $       156,955 $       163,731 $       170,599 $                654,133 Pro forma other hotel operations revenue 19,689 20,299 20,747 22,318 83,053 Pro forma total revenues 182,537 177,254 184,478 192,917 737,186 Pro forma total hotel operating expenses 120,357 116,886 118,873 124,496 480,612 Pro forma hotel EBITDA $          62,180 $          60,368 $          65,605 $          68,421 $                256,574 Pro forma hotel EBITDA Margin 34.1 % 34.1 % 35.6 % 35.5 % 34.8 % Pro Forma Statistics: (1) Rooms sold 991,580 957,027 946,105 1,029,583 3,924,295 Rooms available 1,338,979 1,339,060 1,309,950 1,324,598 5,312,587 Occupancy 74.1 % 71.5 % 72.2 % 77.7 % 73.9 % ADR $          164.23 $          164.00 $          173.06 $          165.70 $                   166.69 RevPAR $          121.62 $          117.21 $          124.99 $          128.79 $                   123.13 Actual Statistics: Rooms sold 966,019 935,012 946,105 1,029,583 3,876,719 Rooms available 1,311,563 1,312,953 1,309,950 1,324,598 5,259,064 Occupancy 73.7 % 71.2 % 72.2 % 77.7 % 73.7 % ADR $          162.95 $          163.47 $          173.06 $          165.70 $                   166.27 RevPAR $          120.02 $          116.42 $          124.99 $          128.79 $                   122.57 Reconciliations of Non-GAAP financial measures to comparable GAAP financial measures Revenue: Total revenues $       176,807 $       172,931 $       184,478 $       192,917 $                727,133 Total revenues - acquisitions 6,626 4,586 — — 11,212 Total revenues - dispositions (896) (263) — — (1,159) Pro forma total revenues (1) 182,537 177,254 184,478 192,917 737,186 Hotel Operating Expenses: Hotel operating expenses 116,883 114,770 118,851 124,614 475,118 Hotel operating expenses - acquisitions 4,061 2,261 — — 6,322 Hotel operating expenses - dispositions (587) (145) 22 (118) (828) Pro forma hotel operating expenses (1) 120,357 116,886 118,873 124,496 480,612 Hotel EBITDA: Operating income 15,755 8,037 19,827 22,684 66,303 (Gain) loss on disposal of assets, net (22) (473) (1) 80 (416) Loss on impairment and write-down of assets — 6,723 — — 6,723 Hotel acquisition and transition costs 10 — — — 10 Corporate general and administrative 7,473 7,403 8,571 8,280 31,727 Depreciation and amortization 36,708 36,471 37,230 37,259 147,668 Hotel EBITDA 59,924 58,161 65,627 68,303 252,015 Hotel EBITDA - acquisitions (2) — (89) (429) (2,610) (3,128) Hotel EBITDA - dispositions (3) (309) (118) (22) 118 (331) Same store hotel EBITDA 59,615 57,954 65,176 65,811 248,556 Hotel EBITDA - acquisitions 2,565 2,414 429 2,610 8,018 Pro forma hotel EBITDA (1) $          62,180 $          60,368 $          65,605 $          68,421 $                256,574 (1) Unaudited pro forma information includes operating results for 97 hotels owned as of June 30, 2025 as if all such hotels had been owned by the Company since July 1, 2024. For Acquired Hotels, the Company has included in the pro forma information the financial results of each of the hotels acquired for the period from July 1, 2024, to June 30, 2025. The financial results for the hotels acquired include information provided by the third-party owner of such hotel prior to purchase by the Company and have not been audited or reviewed by our auditors or adjusted by us. For any hotels sold by the Company after July 1, 2024, the Company excludes the financial results of each of those hotels from July 1, 2024 to the date the hotels were sold by the Company in determining pro forma total revenues and pro forma hotel operating expenses. The pro forma information is included to enable comparison of results for the current reporting period to results for the comparable period of the prior year and are not indicative of future results. (2) For any hotels acquired by the Company after July 1, 2024, the Company has excluded the financial results of each of the Acquired Hotels for the period the Acquired Hotels were purchased by the Company to June 30, 2025 (the "Acquisition Period") in determining same-store hotel EBITDA.  (3) For hotels sold by the Company between July 1, 2024, and June 30, 2025, the Company has excluded the financial results of each of the hotels for the period beginning on July 1, 2024, and ending on the date the hotels were sold by the Company in determining same-store hotel EBITDA. Summit Hotel Properties, Inc. Pro Forma and Same Store Data (Unaudited) For the Three MonthsEnded June 30, For the Six MonthsEnded June 30, 2025 2024 2025 2024 Pro Forma (1) Rooms sold 1,029,583 1,035,292 1,975,688 1,990,825 Rooms available 1,324,598 1,324,414 2,634,548 2,648,828 Occupancy 77.7 % 78.2 % 75.0 % 75.2 % ADR $  165.70 $  171.34 $  169.22 $  171.48 RevPAR $  128.79 $  133.94 $  126.90 $  128.89 Occupancy change (0.6) % (0.2) % ADR change (3.3) % (1.3) % RevPAR change (3.8) % (1.5) % For the Three MonthsEnded June 30, For the Six MonthsEnded June 30, 2025 2024 2025 2024 Same-Store (2) Rooms sold 999,712 1,003,343 1,924,004 1,930,852 Rooms available 1,288,289 1,288,105 2,562,329 2,576,210 Occupancy 77.6 % 77.9 % 75.1 % 74.9 % ADR $  165.04 $  170.60 $  169.36 $  171.64 RevPAR $  128.07 $  132.89 $  127.17 $  128.65 Occupancy change (0.4) % 0.2 % ADR change (3.3) % (1.3) % RevPAR change (3.6) % (1.1) % (1) Unaudited pro forma information includes operating results for 97 hotels owned as of June 30, 2025, as if each hotel had been owned by the Company since January 1, 2024. As a result, these pro forma operating and financial measures include operating results for certain hotels for periods prior to the Company's ownership. (2) Same-store information includes operating results for 95 hotels owned by the Company as of January 1, 2024, and at all times during the three and six months ended June 30, 2025, and 2024. Non-GAAP Financial MeasuresWe 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 From Operations ("FFO") and Adjusted Funds from Operations ("AFFO"), (ii) Earnings before Interest, Taxes, Depreciation and Amortization ("EBITDA"), Earnings before Interest, Taxes, Depreciation and Amortization for Real Estate ("EBITDAre"), Adjusted EBITDAre, and hotel EBITDA (as described below). We caution investors that amounts presented in accordance with our definitions of non-GAAP financial measures may not be comparable to similar measures disclosed by other companies, since not all companies calculate these non-GAAP financial measures in the same manner. Our non-GAAP financial measures should be considered along with, but not as alternatives to, net income (loss) as a measure of our operating performance. Our non-GAAP financial measures may include funds that may not be available for our discretionary use due to functional requirements to conserve funds for capital expenditures, property acquisitions, debt service obligations and other commitments and uncertainties. Although we believe that our non-GAAP financial measures can enhance the understanding of our financial condition and results of operations, these non-GAAP financial measures are not necessarily better indicators of any trend as compared to a comparable measure prescribed by GAAP such as net income (loss).Funds From Operations ("FFO") and Adjusted FFO ("AFFO")As defined by Nareit, FFO represents net income or loss (computed in accordance with GAAP), excluding preferred dividends, gains (or losses) from sales of real property, impairment losses on real estate assets, items classified by GAAP as extraordinary, the cumulative effect of changes in accounting principles, plus depreciation and amortization related to real estate assets, and adjustments for unconsolidated partnerships, and joint ventures. AFFO represents FFO excluding amortization of deferred financing costs, franchise fees, equity-based compensation expense, debt transaction costs, premiums on redemption of preferred shares, losses from net casualties, non-cash lease expense, non-cash interest income and non-cash income tax related adjustments to our deferred tax assets. Unless otherwise indicated, we present FFO and AFFO applicable to our common shares and common units. We present FFO and AFFO because we consider FFO and AFFO an important supplemental measure of our operational performance and believe it is frequently used by securities analysts, investors, and other interested parties in the evaluation of REITs, many of which present FFO and AFFO when reporting their results. FFO and AFFO are intended to exclude GAAP historical cost depreciation and amortization, which assumes that the value of real estate assets diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. Because FFO and AFFO exclude depreciation and amortization related to real estate assets, gains and losses from real property dispositions and impairment losses on real estate assets, FFO and AFFO provide performance measures that, when compared year over year, reflect the effect to operations from trends in occupancy, guestroom rates, operating costs, development activities and interest costs, providing perspective not immediately apparent from net income. Our computation of FFO differs slightly from the computation of Nareit-defined FFO related to the reporting of corporate depreciation and amortization expense. Our computation of FFO may also differ from the methodology for calculating FFO used by other equity REITs and, accordingly, may not be comparable to such other REITs. FFO and AFFO should not be considered as an alternative to net income (loss) (computed in accordance with GAAP) as an indicator of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to pay dividends or make distributions. Where indicated in this release, FFO is based on our computation of FFO and not the computation of Nareit-defined FFO unless otherwise noted.EBITDA, EBITDAre, Adjusted EBITDAre, and Hotel EBITDAIn 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 interest among generalist investors. The conclusion was reached that, while dedicated REIT investors have long been accustomed to utilizing the industry's supplemental measures such as FFO and net operating income ("NOI") to evaluate the investment quality of REITs as real estate companies, it would be helpful to generalist investors for REITs as real estate companies to also present EBITDAre as a more widely known and understood supplemental measure of performance. EBITDAre is intended to be a supplemental non-GAAP performance measure that is independent of a company's capital structure and will provide a uniform basis for one measurement of the enterprise value of a company compared to other REITs.EBITDAre, as defined by Nareit, is calculated as EBITDA, excluding: (i) loss and gains on disposition of property and (ii) asset impairments, if any. We believe EBITDAre is useful to an investor in evaluating our operating performance because it provides investors with an indication of our ability to incur and service debt, to satisfy general operating expenses, to make capital expenditures and to fund other cash needs or reinvest cash into our business. We also believe it helps investors meaningfully evaluate and compare the results of our operations from period to period by removing the effect of our asset base (primarily depreciation and amortization) from our operating results.We make additional adjustments to EBITDAre when evaluating our performance because we believe that the exclusion of certain additional non-recurring or unusual items described below provides useful supplemental information to investors regarding our on-going operating performance. We believe that the presentation of Adjusted EBITDAre, when combined with the primary GAAP presentation of net income, is useful to an investor in evaluating our operating performance because it provides investors with an indication of our ability to incur and service debt, to satisfy general operating expenses, to make capital expenditures and to fund other cash needs or reinvest cash into our business. We also believe it helps investors meaningfully evaluate and compare the results of our operations from period to period by removing the effect of our asset base (primarily depreciation and amortization) from our operating results.With respect to hotel EBITDA, we believe that excluding the effect of corporate-level expenses and non-cash items provides a more complete understanding of the operating results over which individual hotels and operators have direct control. We believe the property-level results provide investors with supplemental information on the on-going operational performance of our hotels and effectiveness of the third-party management companies operating our business on a property-level basis.We caution investors that amounts presented in accordance with our definitions of EBITDA, EBITDAre, adjusted EBITDAre, and hotel EBITDA may not be comparable to similar measures disclosed by other companies, since not all companies calculate these non-GAAP measures in the same manner. EBITDA, EBITDAre, adjusted EBITDAre, and hotel EBITDA should not be considered as an alternative measure of our net income (loss) or operating performance. EBITDA, EBITDAre, adjusted EBITDAre, and hotel EBITDA may include funds that may not be available for our discretionary use due to functional requirements to conserve funds for capital expenditures and property acquisitions and other commitments and uncertainties. Although we believe that EBITDA, EBITDAre, adjusted EBITDAre, and hotel EBITDA can enhance your understanding of our financial condition and results of operations, these non-GAAP financial measures are not necessarily a better indicator of any trend as compared to a comparable GAAP measure such as net income (loss). Above, we include a quantitative reconciliation of EBITDA, EBITDAre, adjusted EBITDAre and hotel EBITDA to the most directly comparable GAAP financial performance measure, which is net income (loss) and operating income (loss).SOURCE Summit Hotel Properties, Inc. WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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