Austin – November 03, 2026 -- Summit Hotel Properties (NYSE: INN) raised its full-year 2026 guidance after third-quarter operating income rose 90.3% to $16.3 million and Adjusted EBITDAre gained 11.8% to $43.9 million, driven by a 7.2% jump in pro forma RevPAR.
Pro forma hotel EBITDA climbs 14.4% as margins widen 191 basis points
Pro forma RevPAR reached $126.17 in the quarter. Pro forma ADR rose 5.3% to $167.95, and pro forma occupancy increased 1.8% to 75.1%. Pro forma hotel EBITDA grew to $60.4 million from $52.8 million a year earlier, and the margin expanded 191 basis points to 32.6%.
CEO Jonathan Stanner said operating fundamentals "accelerated meaningfully during the quarter," with midweek demand in urban markets and a recovery in business transient travel leading the gains. He also cited continued strength in group demand across most markets and all demand segments.
Net loss attributable to common stockholders narrowed to $7.7 million, or $0.07 per diluted share, from $11.3 million, or $0.11 per share, in the third quarter of 2025. Adjusted FFO rose 13.9% to $24.2 million, or $0.20 per diluted share, against $21.3 million, or $0.17 per share, a year earlier.
Nine-month growth trails the quarter's pace
Year-to-date pro forma RevPAR increased 4.0% to $129.91. ADR rose 4.5% to $174.70, while occupancy slipped 0.5% to 74.4%. Pro forma hotel EBITDA grew 5.9% to $195.2 million from $184.4 million, and Adjusted EBITDAre rose 5.7% to $142.9 million from $135.2 million.
Nine-month Adjusted FFO reached $84.6 million, or $0.70 per diluted share, versus $81.3 million, or $0.66 per share. The year-to-date net loss narrowed to $14.2 million, or $0.14 per share, from $17.6 million, or $0.17 per share.
Term loan amendments cut interest costs by about $2.4 million a year
In September, Summit amended its $200 million Term Loan Facility and $275 million Delayed Draw Term Loan Facility to match the terms of its recently amended $650 million Senior Credit Facility. Borrowings now price at 135 to 225 basis points over adjusted Term SOFR. Based on leverage at September 30, the amendments produced an initial 20-basis-point rate reduction on the $475 million of borrowings.
A lower trailing twelve-month leverage ratio delivered a further 15-basis-point spread cut across $675 million of term loan debt. Against the prior pricing grid and June 30 leverage, the company expects annual interest savings of about $2.4 million. The $200 million term loan's maturity was extended to February 2028, with options for up to two additional six-month extensions.
Balance sheet carries $1.1 billion of debt and no maturities until 2028
Pro rata outstanding debt stood at $1.1 billion at a weighted average interest rate of 5.50%. Of that, $539.1 million, or 51%, was fixed after interest rate derivatives, and $520.0 million, or 49%, was variable. Unrestricted cash totaled $51.9 million, and total pro rata liquidity was about $350 million. Nothing was drawn on the revolving credit facility, and weighted average term to maturity was about 3.4 years including extension options.
Summit sells two Dallas-area hotels for $19.0 million at a 5.9% cap rate
In July, the company sold the 103-room Courtyard by Marriott and the 96-room Residence Inn by Marriott in Arlington South, Texas. The combined price implies a 5.9% capitalization rate on trailing twelve-month net operating income, after accounting for about $7.6 million of foregone near-term capital expenditures.
Since 2023, Summit and its affiliates have sold 15 hotels for about $219.0 million at a blended 4.7% cap rate, including an estimated $67.6 million of foregone capital needs. The sold hotels averaged RevPAR of $86, roughly 30% below the current pro forma portfolio.
Guidance ranges rise for RevPAR, EBITDAre and FFO
Summit increased both the low and high ends of its 2026 ranges for pro forma RevPAR growth, Adjusted EBITDAre, Adjusted FFO and Adjusted FFO per share. The outlook covers 92 lodging assets owned as of November 3 and assumes no further acquisitions, dispositions, share repurchases or capital markets activity.
The board declared a quarterly common dividend of $0.08 per share, an annualized yield of 4.5% based on the November 2 closing price. Preferred dividends are payable November 30 to holders of record as of November 16. The company holds its earnings call on November 4 at 9:00 AM ET.