1. Reported Q2 2025 net loss of $1.6 million, down from a profit last year. 2. RevPAR decreased 3.6%, yet occupancy approached record highs. 3. The company increased liquidity with $310 million available and no debt maturities until 2028. 4. Share repurchase program utilized $15.4 million at an average price of $4.30. 5. Onera Fredericksburg expansion aims for significant revenue growth with luxury offerings.
Despite liquidity improvements, net losses and RevPAR declines could deter investors.
The article highlights key financial metrics and strategic moves, directly impacting investor sentiment.
Immediate performance issues may prompt investor caution, impacting share price in the short-term.
Repurchased 3.6 Million Shares for $15.4 Million, an Average of $4.30 per Share
Completed Two Significant Debt Financings to Extend Maturity Dates and Enhance Corporate Liquidity
AUSTIN, Texas, Aug. 5, 2025 /PRNewswire/ -- Summit Hotel Properties, Inc. (NYSE: INN) (the "Company"), today announced results for the three and six months ended June 30, 2025.
"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.
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 Months Ended June 30, | For the Six Months Ended 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 |
For more information, visit the Company’s website at www.shpreit.com.
This press release contains statements that are "forward-looking statements"...