Summit Hotel Properties Reports Decline in Revenue and Net Income for Q2 2025

Summit Hotel Properties, Inc. reported a decline in financial performance for the second quarter of 2025, with total revenues of $192.9 million, a decrease of 0.5% from $193.9 million in the same period of 2024. The company experienced a net income of $2.0 million, significantly down from $38.7 million year-over-year. This decline was attributed to reduced government-related and inbound international travel, which negatively impacted room revenues, leading to a 1.4% decrease in room revenue to $170.6 million. The company also reported a net loss attributable to common stockholders of $1.6 million, compared to a profit of $30.8 million in the prior year.

In terms of operational metrics, the company’s average daily rate (ADR) fell by 2.8% to $165.70, while revenue per available room (RevPAR) decreased by 2.7% to $128.79. Occupancy rates remained stable at 77.7%. The company’s total expenses increased by 2.6% to $170.2 million, driven by higher labor and maintenance costs. The overall decline in revenues and profitability was compounded by a significant loss on the disposal of assets, which was notably absent in the previous year.

Strategically, Summit Hotel Properties has been active in managing its portfolio, which consisted of 97 lodging properties with 14,577 guestrooms across 25 states as of June 30, 2025. The company has focused on acquisitions and dispositions to optimize its asset base. Notably, it completed the sale of a parcel of undeveloped land in San Antonio for $1.3 million and has been involved in joint ventures, including a 51% controlling interest in 41 properties through a partnership with USFI G-Peak, Ltd. The company also repurchased 3.6 million shares of its common stock under a $50 million share repurchase program, reflecting its commitment to returning value to shareholders.

Looking ahead, Summit Hotel Properties anticipates continued challenges due to macroeconomic factors, including inflation and changes in consumer behavior affecting travel demand. However, the company remains optimistic about the long-term outlook for the lodging industry, citing expected growth in room night demand and minimal supply growth as positive indicators for future revenue per available room (RevPAR) growth. The company has also secured a $275 million delayed draw term loan to refinance a significant portion of its convertible notes maturing in February 2026, which is expected to enhance its liquidity and financial flexibility moving forward.