SUMMIT HOTEL PROPERTIES REPORTS SECOND QUARTER 2026 RESULTS

Second Quarter Operating Income Increased 27.3% to $28.9 Million; Adjusted EBITDAre Increased 7.7% to $54.8 Million

Second Quarter Pro Forma RevPAR Increased 5.0%, Led by Robust ADR Growth of 7.1%

Strengthened Balance Sheet with Refinanced $650 Million Senior Credit Facility and Sale of Two Additional Hotels

AUSTIN, Texas, Aug. 5, 2026 /PRNewswire/ -- Summit Hotel Properties, Inc. (NYSE: INN) (the "Company"), today announced results for the three and six months ended June 30, 2026.

"We were pleased with our strong second quarter results and are increasingly optimistic about the outlook for our business. Operating fundamentals accelerated in the quarter and exceeded our expectations as pro forma RevPAR increased 5.0 percent year-over-year driven by a 7.1 percent increase in average rates. Demand strength was broad based across segments and markets reflecting the quality of our portfolio, and our team did a terrific job capitalizing on a more favorable environment driving hotel EBITDA growth of 7.8 percent compared to the second quarter of last year. Our outlook for the remainder of the year continues to improve as the positive inflection of industry fundamentals proves durable, and we have increased our full year 2026 guidance ranges to reflect this more positive outlook," said Jonathan Stanner, President and Chief Executive Officer.

"We also continue to make progress strengthening our balance sheet. During the quarter, we refinanced our primary corporate credit facility, extending its maturity date and lowering borrowing costs, and separately negotiated a reduction in the interest rate spread on our Miami Brickell mortgage loan. We have no debt maturities until 2028 and significant liquidity. Subsequent to quarter end, we closed on the previously announced sale of two wholly-owned hotels as we continue to successfully recycle capital to reduce leverage, build capacity for future growth, and enhance the quality of our portfolio," continued Mr. Stanner.

Second Quarter 2026 Summary

• Net Income: Net income attributable to common stockholders was $3.9 million, or $0.04 per diluted share, compared to net loss of $1.6 million, or $0.02 per diluted share, for the second quarter of 2025.

• Pro Forma RevPAR: Pro forma RevPAR increased 5.0 percent to $136.06 compared to the second quarter of 2025. Pro forma ADR increased 7.1 percent to $178.42 compared to the same period in 2025, and pro forma occupancy decreased 1.9 percent to 76.3 percent.

• Pro Forma Hotel EBITDA⁽¹⁾: Pro forma hotel EBITDA increased 7.8 percent to $72.5 million from $67.3 million in the same period in 2025. Pro forma hotel EBITDA margin expanded 88 basis points to 36.4 percent in the second quarter.

• Adjusted EBITDAre⁽¹⁾: Adjusted EBITDAre increased 7.7 percent to $54.8 million from $50.9 million in the second quarter of 2025.

• Adjusted FFO⁽¹⁾: Adjusted FFO increased 6.7 percent to $34.9 million, or $0.29 per diluted share, compared to $32.7 million, or $0.27 per diluted share, in the second quarter of 2025.

Year-to-Date 2026 Summary

• Net Loss: Net loss attributable to common stockholders was $6.6 million, or $0.06 per diluted share, compared to net loss of $6.3 million, or $0.06 per diluted share, in the same period of 2025.

• Pro Forma RevPAR: Pro forma RevPAR increased 2.7 percent to $131.34 compared to the same period of 2025. Pro forma ADR increased 4.4 percent to $177.67, and pro forma occupancy decreased 1.6 percent to 73.9 percent.

• Pro Forma Hotel EBITDA⁽¹⁾: Pro forma hotel EBITDA increased 2.6 percent to $135.9 million from $132.4 million.

• Adjusted EBITDAre⁽¹⁾: Adjusted EBITDAre increased 3.2 percent to $99.0 million from $95.9 million in the same period of 2025.

• Adjusted FFO⁽¹⁾: Adjusted FFO increased to $60.4 million, or $0.50 per diluted share, compared to $60.1 million, or $0.49 per diluted share, in the same period of 2025.

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

Transaction Activity

Subsequent to quarter end, on July 22, 2026, we closed on the previously announced 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. These hotels benefited from significant FIFA World Cup driven demand in June and July, during which the Company continued to own the hotels. Based on the net operating income for the trailing twelve months prior to FIFA World Cup demand, the sale price represents a 5.4 percent capitalization rate after consideration of foregone near-term required capital expenditures.

Since 2023, the Company and its affiliates have sold, or are under contract to sell, 15 hotels for a combined sales price of approximately $219 million at a blended capitalization rate of approximately 4.7 percent, inclusive of an estimated $68 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 30.0 percent discount to the current pro forma portfolio.

Capital Markets Activity

Senior Credit Facility
On June 29, 2026, the Company closed on a $650 million Senior Credit Facility to refinance the previous 2023 Senior Credit Facility. The 2026 Senior Credit Facility is comprised of a $400 million senior unsecured revolving credit facility, a $200 million senior unsecured term loan, and a $50 million senior unsecured delayed draw term loan.

The amended and restated credit agreement provides for a fully extended maturity date of June 2031. The pricing grid for the current facility ranges from 140 to 230 basis points for the Revolver and 135 to 225 basis points for the Term Loan and Delayed Draw Term Loan, each over the applicable adjusted Term SOFR rate. At the Company's current leverage, pricing on the new senior unsecured facility improved by 20 basis points, resulting in immediate interest savings and earnings accretion. Other terms of the agreement are similar to the Company's previous credit facility agreement.

Brickell Mortgage Loan
On May 15, 2026, the Company, together with its joint venture partner, amended the terms of the $58 million mortgage loan to reduce the interest rate spread from 260 basis points to 230 basis points, over the applicable Term SOFR rate. Other terms of the agreement remain unchanged. The mortgage loan provides for a fully extended maturity date of May 2030.

Stock Repurchases
During the second quarter, the Company repurchased approximately 49,000 shares for an aggregate purchase price of $0.2 million, or a weighted average price of approximately $4.27 per share. During the six months ended June 30, 2026, the Company repurchased 1.5 million common shares under its share repurchase program for an aggregate purchase price of $6.2 million, or a weighted average price of approximately $4.17 per share.

Since the inception of our share repurchase program in 2025, we have repurchased approximately 5.1 million shares (approximately 4.2 percent of total shares and units outstanding) at an average price of $4.26 per share. As of June 30, 2026, approximately $28.4 million remained available for repurchase under this program.

Balance Sheet Summary

On a pro rata basis as of June 30, 2026, the Company had the following outstanding indebtedness:

• Outstanding debt of $1.1 billion with a weighted average interest rate of 5.46 percent. After giving effect to interest rate derivative agreements, $539.2 million, or 51 percent, of our outstanding debt had a fixed interest rate, and $525.0 million, or 49 percent, had a variable interest rate.

• Unrestricted cash and cash equivalents of $29.3 million.

As of June 30, 2026, the Company's pro rata weighted average term to maturity was approximately 3.7 years, including extension options, and had only $5.0 million outstanding under its Revolving Credit Facility. Subsequent to the sale of the Courtyard by Marriott, Dallas (Arlington South), TX and the Residence Inn by Marriott, Dallas (Arlington South), TX, the Company paid off the outstanding balance of the Revolving Credit Facility.

Common and Preferred Dividend Declaration

On July 28, 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 4.6 percent, based on the closing price of shares of the common stock on August 4, 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 August 31, 2026, to holders of record as of August 17, 2026.

2026 Outlook

The Company's updated outlook for the full year 2026 is based on 92 lodging assets owned as of August 5, 2026.

Our previous guidance ranges incorporated ownership of the recently sold Courtyard by Marriott, Dallas (Arlington South), TX and Residence Inn by Marriott, Dallas (Arlington South), TX hotels which were expected to contribute approximately $0.5 million of hotel EBITDA in the remaining five months of 2026. These hotels are no longer included in our updated guidance ranges.

Based on actual results for the first six 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.

Second Quarter 2026 Earnings Conference Call

The Company will conduct its quarterly conference call on August 6, 2026, at 9:00 AM ET.

1. To access the conference call, please dial +1 (800) 715-9871 and enter passcode 8328053 when prompted.
   
   
2. 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, 2026.

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 August 5, 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.

Forward-Looking Statements

This 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, 2025, 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.

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 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 EBITDA

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 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.