Summit Hotel Properties Reports $184.5 Million Revenue in Q1 2025, Faces Decline in Room Revenue

Summit Hotel Properties, Inc. reported a total revenue of $184.5 million for the first quarter of 2025, a decrease of 1.8% from $188.1 million in the same period of 2024. The decline was primarily driven by a $3.7 million drop in room revenue, which fell to $163.7 million, reflecting the impact of property sales and acquisitions over the past year. Despite this, food and beverage revenue saw a slight increase to $11.0 million, up from $10.8 million, while other revenues remained relatively stable. The company's operating income also decreased to $19.8 million from $23.5 million year-over-year, resulting in a net income of $0.6 million, down from $2.8 million in the prior year.

In terms of expenses, total costs remained largely unchanged at $164.7 million compared to $164.7 million in the previous year. Notably, interest expenses decreased to $20.0 million from $21.6 million, contributing to a reduction in overall financial burdens. The company’s net loss attributable to common stockholders was $4.7 million, compared to a loss of $2.1 million in the same quarter of 2024, reflecting the challenges faced in the current economic environment.

Strategically, Summit Hotel Properties has been active in managing its portfolio, which consisted of 97 lodging properties with 14,555 guestrooms across 25 states as of March 31, 2025. The company has focused on optimizing its asset base, evidenced by the sale of five properties in 2024 and the acquisition of two new properties. The company also announced a $275 million delayed draw term loan in March 2025, aimed at refinancing a significant portion of its convertible notes maturing in February 2026. This move is part of a broader strategy to manage debt and maintain liquidity.

Operationally, the company reported an occupancy rate of 72.2% for the first quarter, an increase from 71.8% in the previous year, while the average daily rate (ADR) rose slightly to $173.06. Revenue per available room (RevPAR) increased by 0.9% to $124.99, indicating a modest improvement in operational performance despite the overall revenue decline. The company continues to focus on enhancing guest experiences and optimizing operational efficiencies to drive future growth.

Looking ahead, Summit Hotel Properties remains cautiously optimistic about the lodging industry, anticipating a favorable long-term outlook driven by expected growth in room night demand and minimal supply growth. However, the company acknowledges potential challenges, including economic uncertainties and inflationary pressures that could impact consumer behavior and travel demand. The management is committed to navigating these challenges while continuing to enhance its portfolio and operational performance.