Third Quarter Operating Income Increased 90.3% to $16.3 Million; Adjusted EBITDAre Increased 11.8% to $43.9 Million

Third Quarter Pro Forma RevPAR Increased 7.2%, Driving a 14.4% Increase in Pro Forma Hotel EBITDA

AUSTIN, Texas, Nov. 3, 2026 /PRNewswire/ -- Summit Hotel Properties, Inc. (NYSE: INN) (the "Company"), today announced results for the three and nine months ended September 30, 2026.

"We delivered outstanding third quarter results that exceeded expectations as operating fundamentals accelerated meaningfully during the quarter. Pro forma RevPAR increased 7.2 percent year-over-year driven by broad based demand growth and pricing power, particularly midweek in our urban markets. Our teams capitalized on this favorable operating backdrop to drive exceptional profitability growth as pro forma hotel EBITDA increased 14.4 percent with margins expanding nearly 200 basis points year-over-year. Growth in our portfolio was strong across the vast majority of markets and all demand segments, led by the accelerating recovery in business transient travel and the ongoing strength of group demand. Our outlook for the industry broadly and Summit specifically continues to improve. Based on our strong third quarter results and increased expectations for the fourth quarter, we have again raised our full year 2026 guidance ranges to reflect the positive momentum in our business," said Jonathan Stanner, President and Chief Executive Officer.

"We also continue to enhance our balance sheet and reduce borrowing costs. During the quarter, we repriced two term loan facilities totaling $475 million of borrowings, lowering the applicable interest rate by 20 basis points on those facilities. This follows the previous pricing reduction of our primary $650 million corporate revolving and term loan facility. We have no debt maturities until 2028 and approximately $350 million of liquidity, which positions the Company well for future growth," continued Mr. Stanner.

Third Quarter 2026 Summary

- Net Loss: Net loss attributable to common stockholders was $7.7 million, or $0.07 per diluted share, compared to net loss of $11.3 million, or $0.11 per diluted share, for the third quarter of 2025.

- Pro Forma RevPAR: Pro forma RevPAR increased 7.2 percent to $126.17 compared to the third quarter of 2025. Pro forma ADR increased 5.3 percent to $167.95 compared to the same period in 2025, and pro forma occupancy increased 1.8 percent to 75.1 percent.

- Pro Forma Hotel EBITDA(1): Pro forma hotel EBITDA increased 14.4 percent to $60.4 million from $52.8 million in the same period in 2025. Pro forma hotel EBITDA margin expanded 191 basis points to 32.6 percent in the third quarter.

- Adjusted EBITDAre(1): Adjusted EBITDAre increased 11.8 percent to $43.9 million from $39.3 million in the third quarter of 2025.

- Adjusted FFO(1): Adjusted FFO increased 13.9 percent to $24.2 million, or $0.20 per diluted share, compared to $21.3 million, or $0.17 per diluted share, in the third quarter of 2025.

Year-to-Date 2026 Summary

- Net Loss: Net loss attributable to common stockholders was $14.2 million, or $0.14 per diluted share, compared to net loss of $17.6 million, or $0.17 per diluted share, in the same period of 2025.

- Pro Forma RevPAR: Pro forma RevPAR increased 4.0 percent to $129.91 compared to the same period of 2025. Pro forma ADR increased 4.5 percent to $174.70, and pro forma occupancy decreased 0.5 percent to 74.4 percent.

- Pro Forma Hotel EBITDA(1): Pro forma hotel EBITDA increased 5.9 percent to $195.2 million from $184.4 million.

- Adjusted EBITDAre(1): Adjusted EBITDAre increased 5.7 percent to $142.9 million from $135.2 million in the same period of 2025.

- Adjusted FFO(1): Adjusted FFO increased to $84.6 million, or $0.70 per diluted share, compared to $81.3 million, or $0.66 per diluted share, in the same period of 2025.

The Company's results for the three and nine months ended September 30, 2026 and 2025 are as follows (in thousands, except per share amounts and metrics):

Transaction Activity

In July 2026, the Company completed the sale of the wholly-owned 103-guestroom Courtyard by Marriott, Dallas (Arlington South), TX and the 96-guestroom Residence Inn by Marriott, Dallas (Arlington South), TX for a combined selling price of $19.0 million. The combined sale price represents a 5.9 percent capitalization rate based on the net operating income for the trailing twelve months ended June 30, 2026, and after consideration of approximately $7.6 million of foregone near-term required capital expenditures.

Since 2023, the Company and its affiliates have sold 15 hotels for a combined sales price of approximately $219.0 million at a blended capitalization rate of approximately 4.7 percent, inclusive of an estimated $67.6 million of foregone capital needs, based on the trailing twelve-month net operating income at the time of each sale. The combined RevPAR for the sold hotels was $86, which is an approximate 30 percent discount to the current pro forma portfolio.

Capital Markets Activity

In September 2026, the Company amended its $200 Million Term Loan Facility and $275 Million Delayed Draw Term Loan Facility to conform the pricing grids and other material terms of these facilities with those of its recently amended $650 Million Senior Credit Facility.

Pursuant to the amended pricing grids, borrowings under the $200 Million Term Loan Facility and the $275 Million Delayed Draw Term Loan Facility bear interest at rates ranging from 135 to 225 basis points over the applicable adjusted Term SOFR rate. Based on the Company's leverage as of September 30, 2026, these amendments resulted in an initial 20 basis point reduction in the applicable interest rate. Furthermore, due to a reduction in the Company's quarter-end trailing twelve-month leverage ratio, the Company achieved an additional 15 basis point reduction in the interest rate spread across $675 million of term loan debt. Compared to the Company's pre-amendment pricing grid and June 30, 2026 leverage ratio, these spread reductions are expected to generate annual interest expense savings of approximately $2.4 million.

In connection with the amendment to the $200 Million Term Loan Facility, the initial maturity date was extended to February 2028. The Company retains the option, subject to certain conditions, to further extend the maturity date for up to two additional six-month periods.

Balance Sheet Summary

As of September 30, 2026, the Company's balance sheet reflected the following:

- Pro rata outstanding debt of $1.1 billion with a weighted average interest rate of 5.50 percent. After giving effect to interest rate derivative agreements, $539.1 million, or 51 percent, of our outstanding debt had a fixed interest rate, and $520.0 million, or 49 percent, had a variable interest rate.

- Pro rata unrestricted cash and cash equivalents of $51.9 million.

- Total pro rata liquidity of approximately $350 million, including unrestricted cash and cash equivalents and revolving credit facility availability.

- The Company's pro rata weighted average term to maturity was approximately 3.4 years, including extension options.

- No debt maturities until 2028.

- No balance outstanding under its Revolving Credit Facility.

Common and Preferred Dividend Declaration

On October 27, 2026, 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 4.5 percent, based on the closing price of shares of the common stock on November 2, 2026.

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 November 30, 2026, to holders of record as of November 16, 2026.

2026 Outlook

The Company's updated outlook for the full year 2026 is based on 92 lodging assets owned as of November 3, 2026.

Based on actual results for the first nine months of the year and recent operating trends, the Company is increasing the low and high end of its guidance ranges for pro forma RevPAR growth, Adjusted EBITDAre, Adjusted FFO, and Adjusted FFO per share. There are no additional acquisitions, dispositions, share repurchases, or capital markets activities assumed in the Company's full year 2026 outlook.

Third Quarter 2026 Earnings Conference Call

The Company will conduct its quarterly conference call on November 4, 2026, 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 February 1, 2027.

Supplemental Disclosures

In 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 Properties

Summit 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 November 3, 2026, the Company's portfolio consisted of 92 assets, 50 of which are wholly owned, with a total of 14,027 guestrooms located in 24 states.

For additional information, please visit the Company's website, www.shpreit.com, and follow on X at @SummitHotel_INN.