Summit Hotel Properties ( (INN) ) has released its Q3 earnings. Here is a breakdown of the information Summit Hotel Properties presented to its investors.
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Summit Hotel Properties, Inc., a publicly traded real estate investment trust (REIT), specializes in owning premium-branded lodging facilities within the upscale segment of the lodging industry, boasting a portfolio of 95 assets across 24 states with efficient operating models.
In its third quarter 2024 financial report, Summit Hotel Properties highlighted continued growth in Adjusted Funds from Operations (FFO) and Adjusted EBITDA, despite facing challenges such as disruptions caused by Hurricane Helene. The company successfully implemented its capital recycling program, enhancing its financial stability and positioning for future growth by completing the sale of multiple hotels, including the Four Points San Francisco Airport.
Key performance metrics for the third quarter showed a 4% increase in Adjusted FFO to $27.6 million, with Adjusted EBITDAre decreasing slightly by 2.1% to $45.3 million. The company’s strategic asset disposition efforts have generated nearly $150 million, facilitating a reduction in leverage and improving the portfolio’s quality. Year-to-date results also reflect a robust recovery, with net income reaching $24.5 million compared to a net loss in the previous year.
Summit Hotel Properties’ outlook for 2024 remains cautious yet optimistic, as management revises its full-year expectations to accommodate a moderating RevPAR growth environment and potential disruptions from hurricanes. The company continues to focus on optimizing its portfolio through strategic sales and investments, aiming for sustained growth and enhanced shareholder value.
