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Mar 31, 2020
Summit Hotel Properties Q1 2020 Earnings Report
Announced first quarter 2020 results, implemented cost reduction measures to mitigate effects of COVID-19 pandemic, and amended senior debt facilities to preserve liquidity and enhance flexibility.
Key Takeaways
Summit Hotel Properties announced their Q1 2020 results, with their focus shifting to COVID-19 crisis response efforts in early March. They have worked with partners to ensure the safety of associates and guests and have taken measures to mitigate the operational and financial effects of the pandemic. Additionally, they amended their revolving and term loan credit facilities, providing a twelve-month financial covenant waiver, $150 million of additional liquidity, and enhanced flexibility.
Implemented significant cost reduction measures to mitigate effects of COVID-19 Pandemic
Successfully amended senior debt facilities to preserve liquidity and enhance flexibility
Efficient operating model and well-located, diverse portfolio allowed the company to keep the majority of hotels open during low demand
No debt maturities until November 2022
Forward Guidance
The company anticipates investing a total of approximately $25 million in capital improvements on a consolidated basis across its portfolio during 2020. The updated capital expenditure range reflects the postponement of all non-essential projects originally planned for 2020 and is expected to conserve approximately $35 million of cash compared to the midpoint of the Company’s prior capital expenditure outlook.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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