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Jun 30, 2025
Summit Hotel Properties Q2 2025 Earnings Report
Summit Hotel Properties reported a net loss in Q2 2025, with declines in total revenue and key hotel operating metrics compared to the previous year, while also strengthening its balance sheet through debt refinancings and share repurchases.
Key Takeaways
Summit Hotel Properties experienced a challenging second quarter in 2025, reporting a net loss of $1.612 million and a decrease in total revenues to $192.917 million. Despite a decline in RevPAR and Hotel EBITDA, the company focused on strategic financial initiatives, including significant debt refinancings to extend maturity dates and enhance liquidity, and repurchased 3.6 million shares for $15.4 million.
The company reported a net loss attributable to common stockholders of $1.612 million for Q2 2025, a significant decline from a net income of $30.849 million in Q2 2024.
Total revenues for the quarter decreased slightly to $192.917 million from $193.903 million in the prior year's quarter.
Adjusted FFO per diluted share was $0.27, down from $0.29 in the same period last year.
Summit Hotel Properties repurchased 3.6 million common shares for $15.4 million and completed two significant debt financings, extending debt maturities until 2028 and increasing corporate liquidity to over $310 million.
Revenue by Segment
Forward Guidance
The company expects full-year 2025 performance to track modestly below the lower end of previously provided guidance ranges for Adjusted EBITDAre, Adjusted FFO, and Adjusted FFO per share, due to increased price sensitivity and macroeconomic volatility. Capital expenditures for full year 2025 are projected to be between $60 million and $65 million.
Positive Outlook
- Strengthened balance sheet with two additional financings, improving pricing and supplementing future free cash flow and earnings profiles.
- Effectively no debt maturities until 2028, with over $310 million of corporate liquidity.
- Share repurchase program utilized $15.4 million to repurchase 3.6 million common shares at a 15% discount to current trading price.
- Average length to maturity of debt will increase to nearly four years on a pro forma basis, including extension options.
- Completed expansion of Onera Fredericksburg, a luxury landscape hotel, which is expected to continue generating an unlevered yield on cost in the low to mid-teens.
Challenges Ahead
- Near-term results are being negatively affected by increased price sensitivity.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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