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Sep 30, 2025
Summit Hotel Properties Q3 2025 Earnings Report
Summit Hotel Properties reported a decrease in net income and RevPAR, but showed resilience in market share growth and cost management for Q3 2025.
Key Takeaways
Summit Hotel Properties experienced a challenging third quarter in 2025 with a net loss of $11.3 million and a decrease in total revenues to $177.1 million. Despite a decline in RevPAR and Hotel EBITDA compared to the previous year, the company demonstrated strong market share growth with a RevPAR index increase of 140 basis points to approximately 116%. Disciplined cost management limited pro forma operating expense increases to less than 2%. The company also strengthened its balance sheet through strategic asset sales and a significant refinancing subsequent to quarter end.
Net loss attributable to common stockholders was $11.3 million, compared to a net loss of $4.272 million in Q3 2024.
Total revenues remained relatively stable at $177.117 million, a slight increase from $176.807 million in Q3 2024.
Pro forma RevPAR decreased by 4.2% to $116.57, while same-store RevPAR decreased by 3.7% to $115.77.
The company successfully sold two hotels for $39.0 million subsequent to quarter end, further strengthening its balance sheet and liquidity.
Revenue by Segment
Forward Guidance
Summit Hotel Properties anticipates sequential improvement in operating trends for the fourth quarter of 2025, with RevPAR growth expected to range from -2.0% to -2.5%. The company maintains a positive long-term outlook due to a lack of new supply growth in the industry and expects full-year 2025 capital expenditures to be between $60 million and $65 million.
Positive Outlook
- Expectations for sequential improvement in operating trends in Q4 2025.
- Positive longer-term outlook for better operating fundamentals.
- Industry will benefit from a lack of new supply growth.
- Strengthened balance sheet with no debt maturities until 2028.
- High-quality portfolio of well-located hotels positions the Company favorably for long-term growth.
Challenges Ahead
- Near-term results are negatively affected by increased price sensitivity.
- Continued macroeconomic volatility is impacting performance.
- Fourth quarter 2025 RevPAR growth is still expected to be negative, ranging from -2.0% to -2.5%.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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