Summit Hotel Properties Reports Q4 and Full-Year 2025 Results: Asset Sales, Debt Refinancing, and Outlook for 2026

Key Points & Highlights

• Portfolio Demand Stabilizes: Q4 saw demand stabilize across Summit Hotel Properties’ portfolio, with RevPAR growth improving 240 basis points sequentially, despite continued headwinds from lower international inbound travel and reduced government demand, exacerbated by a prolonged government shutdown.
• Asset Recycling Program: Continued execution of capital recycling, including sale of three non-core hotels generating over \$51 million in gross proceeds and eliminating \$13 million of near-term capital expenditures. Since 2023, ~ \$200 million in assets sold at blended cap rate below 5%, preserving nearly \$60 million in renovation capital.
• Strengthened Balance Sheet: No debt maturities until 2028, supported by ample liquidity. On December 31, 2025, Summit had \$1.1 billion in outstanding debt (weighted average interest rate 4.48%), with 77% fixed-rate exposure.
• Debt Refinancing: In February 2026, Summit drew on its \$275 million Delayed Draw Term Loan and Corporate Revolver to fully repay the \$287.5 million convertible notes outstanding.
• Interest Rate Hedging: Entered a \$125 million interest rate swap fixing SOFR at 3.31% through December 2027, replacing a matured swap at 2.92%.
• Dividend Declarations: Quarterly dividend of \$0.08/share (annualized yield 7.7%) declared, plus preferred dividends for Series E, F, and Z shares.
• 2026 Outlook: Pro forma RevPAR growth guidance range 0–3%, adjusted EBITDAre guidance of \$167–\$181 million, adjusted FFO per share guidance of \$0.73–\$0.85, and planned capital expenditures of \$55–\$65 million.

Detailed Financial Results

Fourth Quarter 2025 Summary

• Net Loss: \$6.0 million loss attributable to common stockholders (\$0.06 per diluted share), compared to net income of \$0.7 million (\$0.01 per diluted share) in Q4 2024.
• Same Store RevPAR: Decreased 1.6% to \$115.34. ADR decreased 1.0% to \$162.69. Occupancy down 0.5% to 70.9%.
• Pro Forma RevPAR: Decreased 1.8% to \$115.58. ADR decreased 1.1% to \$162.66. Occupancy down 0.7% to 71.1%.
• Same Store Hotel EBITDA: Fell to \$53.5 million from \$57.3 million a year ago.
• Pro Forma Hotel EBITDA: Down to \$55.3 million from \$59.7 million in Q4 2024.
• Adjusted EBITDAre: Decreased to \$39.7 million from \$42.1 million in Q4 2024.
• Adjusted FFO: Decreased to \$22.3 million (\$0.18 per diluted share) from \$25.2 million (\$0.20 per diluted share) in Q4 2024.

Full Year 2025 Summary

• Net Loss: \$23.6 million loss attributable to common stockholders (\$0.22 per diluted share), compared to \$25.1 million net income (\$0.22 per diluted share) in FY2024.
• Same Store RevPAR: Decreased 1.8% to \$121.73. ADR decreased 1.7% to \$165.22. Occupancy unchanged at 73.7%.
• Pro Forma RevPAR: Decreased 2.2% to \$121.85. ADR decreased 1.8% to \$165.28. Occupancy down 0.4% to 73.7%.
• Same Store Hotel EBITDA: Down to \$234.7 million from \$253.4 million.
• Pro Forma Hotel EBITDA: Down to \$241.6 million from \$261.7 million.
• Adjusted EBITDAre: Down to \$174.8 million from \$192.2 million.
• Adjusted FFO: Down to \$103.6 million (\$0.85 per diluted share) from \$119.2 million (\$0.96 per diluted share).

Transaction Activity

• Sale of Hilton Garden Inn Longview, TX: Sold for \$12.3 million (JV with GIC), cap rate 6.7% (trailing 12 months NOI), with \$2.6 million foregone capital expenditures. Pro rata net proceeds of \$2.4 million used for debt repayment and liquidity. RevPAR for hotel was \$88, significantly below portfolio average.
• Sale of Courtyard Kansas City Country Club Plaza & Courtyard Amarillo Downtown: Combined sale price \$39.0 million, blended cap rate 4.3%, \$10.2 million foregone capital expenditures. Pro rata net proceeds of \$24 million, net gain on sale \$6.7 million.
• Since 2023: 13 hotels sold for ~\$200 million, blended cap rate 4.6%, \$59.9 million in foregone capital needs. Sold hotels had RevPAR ~\$86, ~30% below portfolio average.

Capital Markets & Balance Sheet

• Repayment of Convertible Notes: On February 17, 2026, Summit fully repaid \$287.5 million in convertible notes via term loan and revolver draw.
• Interest Rate Swap: \$125 million swap at 3.31% fixed SOFR until December 2027, replacing previous 2.92% swap.
• Liquidity: As of December 31, 2025, \$1.1 billion debt (77% fixed), \$30.1 million unrestricted cash.

Dividend Information

• Common Dividend: \$0.08/share quarterly, 7.7% annualized yield (based on Feb 24, 2026 closing price).
• Preferred Dividends:
  • \$0.390625/share for 6.25% Series E
  • \$0.3671875/share for 5.875% Series F
  • \$0.328125/unit for 5.25% Series Z
• Dividends payable February 27, 2026 to holders of record as of February 13, 2026.

2026 Guidance & Outlook

• Portfolio: Outlook based on 94 lodging assets owned as of January 1, 2026.
• Pro Forma RevPAR Growth: Guidance range 0.0%–3.0% for FY2026.
• Adjusted EBITDAre: Guidance range \$167–\$181 million.
• Adjusted FFO per share: Guidance range \$0.73–\$0.85.
• Capital Expenditures: Guidance range \$55–\$65 million.
• Assumptions: No additional acquisitions, dispositions, or capital markets activities are assumed for outlook.

Potential Price-Sensitive Information for Shareholders

• Continued asset recycling at attractive valuations could potentially unlock further shareholder value, especially as Summit is disposing of lower RevPAR, higher capex assets.
• Strengthened balance sheet with no debt maturities until 2028 and high proportion of fixed-rate debt reduces refinancing risk and interest expense volatility.
• Dividend stability and attractive yield may support share price, particularly given the payout ratio and liquidity position.
• 2026 guidance signals management expectations for improved fundamentals, particularly from event-driven demand (World Cup matches in six markets), corporate and group demand growth, and easing government travel headwinds.
• Recent net losses and RevPAR declines may be viewed negatively by the market, but offset by portfolio optimization and strong liquidity.

Supplemental Information

• Financial supplement furnished on the company website for further disclosures.
• Fourth quarter 2025 earnings call scheduled for February 26, 2026, at 10:00 AM ET.

About Summit Hotel Properties

Summit Hotel Properties, Inc. is a publicly traded REIT focused on premium-branded, efficiently operated lodging facilities in the upscale segment. As of February 25, 2026, the portfolio comprised 94 assets (52 wholly owned), totaling 14,226 guestrooms in 24 states.

Disclaimer

This article contains information derived from Summit Hotel Properties’ official filings and press release. It includes forward-looking statements subject to risks and uncertainties, including economic conditions, hotel industry supply and demand, and other factors detailed in Summit’s SEC filings. Actual results may differ materially. Investors should consult official filings and consider their own investment objectives before making any decisions. This article is for informational purposes only and does not constitute investment advice or a solicitation to buy or sell securities.

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