Summit Hotel Properties (INN) investor relations material

Executive summary

• Q2 2026 results exceeded expectations, with strong operating fundamentals, broad-based demand, and robust ADR growth across segments and markets; net income attributable to common stockholders was $3.9 million, reversing a prior-year loss.

• Portfolio comprised 94 lodging properties with 14,226 guestrooms in 24 states as of June 30, 2026, with 87% of guestrooms in top 50 MSAs and over 99% under premium brands.

• Asset sales and capital recycling enhanced portfolio quality, with proceeds used to optimize the portfolio and strengthen the balance sheet.

• CFO resigned in June 2026; CEO is serving as interim CFO with no material impact on internal controls.

Financial highlights

• Q2 2026 total revenues were $199.0 million, up from $192.9 million year-over-year; net income attributable to common stockholders was $3.9 million.

• Adjusted EBITDAre for Q2 2026 was $54.8 million, up 7.7% year-over-year; Adjusted FFO was $34.9 million ($0.29/share).

• Pro forma RevPAR increased 5.0% to $136.06, driven by a 7.1% rise in ADR to $178.42, while occupancy declined 1.9% to 76.3%.

• Pro forma hotel EBITDA grew 7.8% to $72.5 million, with margin expanding 88 bps to 36.4%.

• Cash provided by operating activities for the first six months was $83.4 million, up from $74.7 million in 2025.

Outlook and guidance

• Full-year 2026 guidance raised: pro forma RevPAR growth expected at 1.75%–3.25%, Adjusted EBITDAre $175M–$182M, Adjusted FFO $95.5M–$103M, AFFO/share $0.79–$0.85.

• Guidance reflects asset sales, stronger Q2 results, and assumes no further acquisitions, dispositions, or capital markets activity beyond August 5, 2026.

• Capital expenditures projected at $55M–$65M for 2026, funded by operations and available credit.