Summit Hotel Properties, Inc. reported a total revenue of $731.8 million for the fiscal year ended December 31, 2024, a slight decrease of 0.6% compared to $736.1 million in 2023. The company's room revenue also saw a decline, dropping to $650.7 million from $656.1 million in the previous year. However, the same-store revenue increased by 2.1%, driven by improved business transient and group demand, which offset a normalization in leisure demand. The company recorded a net income of $38.9 million, a significant recovery from a net loss of $28.1 million in 2023, reflecting a positive turnaround in operational performance.
In terms of operational metrics, the company achieved an occupancy rate of 73.6% for its total portfolio, up from 72.0% in 2023. The average daily rate (ADR) increased to $167.48, contributing to a revenue per available room (RevPAR) of $123.19, which represents a 3.7% increase year-over-year. The company’s strategic focus on properties located in top metropolitan areas has continued to support its performance, with 86% of its guestrooms situated in the top 50 metropolitan statistical areas.
During the fiscal year, Summit Hotel Properties engaged in significant portfolio management activities, including the acquisition of two properties and the sale of five. Notably, the GIC Joint Venture acquired the Residence Inn by Marriott in Scottsdale, AZ for approximately $29 million and the Nordic Lodge in Steamboat Springs, CO for about $13.7 million. The company also completed the sale of several properties, including a portfolio of two hotels in New Orleans for $73 million, resulting in a gain of approximately $28.3 million. These transactions reflect the company's ongoing strategy to optimize its portfolio by acquiring high-performing assets and divesting underperforming ones.
As of December 31, 2024, Summit Hotel Properties had total assets of $2.9 billion, with investments in lodging properties netting $2.7 billion. The company maintained a conservative capital structure, with total debt of approximately $1.4 billion, which includes $287.5 million in convertible notes. The weighted average interest rate on its debt was reported at 5.01%. The company’s liquidity position remains strong, with cash and cash equivalents totaling $40.6 million, alongside restricted cash of $7.7 million.
Looking ahead, Summit Hotel Properties expressed optimism regarding the lodging industry's long-term growth potential, supported by anticipated increases in room night demand and average daily rates. The company plans to continue its disciplined approach to acquisitions and capital expenditures, with an estimated $65 million to $85 million earmarked for capital improvements in 2025. The management remains focused on enhancing operational efficiencies and maximizing returns on investments, positioning the company for sustained growth in a competitive market.
About Summit Hotel Properties, Inc.
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