INN · Summit Hotel Properties, Inc.

Summit Hotel Properties reported first quarter 2026 results characterized by modest top-line growth but margin compression. Total revenues increased slightly to $185.1 million, while Pro Forma RevPAR grew 0.2% to $126.57, exceeding management's expectations by over 200 basis points. This growth was entirely rate-driven, with Pro Forma ADR increasing 1.5%, offsetting a 1.3% decline in occupancy to 71.6%. Consequently, Hotel EBITDA margin contracted 140 basis points to 34.4%, contributing to a decline in Adjusted EBITDAre to $44.2 million from $45.0 million in the prior year period. Adjusted FFO fell to $25.5 million, or $0.21 per diluted share, down from $27.4 million, or $0.22 per share, in Q1 2025. Management highlighted sequential improvements in demand, with March RevPAR growth exceeding 4%, and noted that positive trends have continued into the second quarter. The Company raised its full-year 2026 guidance, increasing the low end of its Adjusted FFO per share range to $0.75-$0.85, reflecting improved operating momentum. Capital allocation activity remained active, with the Company repurchasing 1.4 million shares during the quarter and announcing an agreement to sell two Dallas hotels for $19 million at a 5.0% cap rate. The Company fully repaid its $287.5 million convertible notes in February 2026, leaving no debt maturities until 2028.