/SUMMIT HOTEL PROPERTIES REPORTS SECOND QUARTER 2026 RESULTS

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SUMMIT HOTEL PROPERTIES REPORTS SECOND QUARTER 2026 RESULTS

PRNewswire

2026/08/05Earnings

SUMMIT HOTEL PROPERTIES REPORTS SECOND QUARTER 2026 RESULTS

Second Quarter Operating Income Increased 27.3% to $28.9 Million; Adjusted EBITDAre Increased 7.7% to $54.8 Million

Second Quarter Pro Forma RevPAR Increased 5.0%**, Led by Robust ADR Growth of 7.1%

Strengthened Balance Sheet with Refinanced $650 Million Senior Credit Facility and Sale of Two Additional Hotels

AUSTIN, Texas, Aug. 5, 2026 — Summit Hotel Properties, Inc. (NYSE: INN) (the "Company"), today announced results for the three and six months ended June 30, 2026.

"We were pleased with our strong second quarter results and are increasingly optimistic about the outlook for our business. Operating fundamentals accelerated in the quarter and exceeded our expectations as pro forma RevPAR increased 5.0 percent year-over-year driven by a 7.1 percent increase in average rates. Demand strength was broad based across segments and markets reflecting the quality of our portfolio, and our team did a terrific job capitalizing on a more favorable environment driving hotel EBITDA growth of 7.8 percent compared to the second quarter of last year. Our outlook for the remainder of the year continues to improve as the positive inflection of industry fundamentals proves durable, and we have increased our full year 2026 guidance ranges to reflect this more positive outlook," said Jonathan Stanner, President and Chief Executive Officer.

"We also continue to make progress strengthening our balance sheet. During the quarter, we refinanced our primary corporate credit facility, extending its maturity date and lowering borrowing costs, and separately negotiated a reduction in the interest rate spread on our Miami Brickell mortgage loan. We have no debt maturities until 2028 and significant liquidity. Subsequent to quarter end, we closed on the previously announced sale of two wholly-owned hotels as we continue to successfully recycle capital to reduce leverage, build capacity for future growth, and enhance the quality of our portfolio," continued Mr. Stanner.

Second Quarter 2026 Summary

Net Income: Net income attributable to common stockholders was $3.9 million, or $0.04 per diluted share, compared to net loss of $1.6 million, or $0.02 per diluted share, for the second quarter of 2025.
Pro Forma RevPAR: Pro forma RevPAR increased 5.0 percent to $136.06 compared to the second quarter of 2025. Pro forma ADR increased 7.1 percent to $178.42 compared to the same period in 2025, and pro forma occupancy decreased 1.9 percent to 76.3 percent.
Pro Forma Hotel EBITDA(1)****: Pro forma hotel EBITDA increased 7.8 percent to $72.5 million from $67.3 million in the same period in 2025. Pro forma hotel EBITDA margin expanded 88 basis points to 36.4 percent in the second quarter.
Adjusted EBITDAre(1)****: Adjusted EBITDAre increased 7.7 percent to $54.8 million from $50.9 million in the second quarter of 2025.
Adjusted FFO(1)****: Adjusted FFO increased 6.7 percent to $34.9 million, or $0.29 per diluted share, compared to $32.7 million, or $0.27 per diluted share, in the second quarter of 2025.

Year-to-Date 2026 Summary

Net Loss: Net loss attributable to common stockholders was $6.6 million, or $0.06 per diluted share, compared to net loss of $6.3 million, or $0.06 per diluted share, in the same period of 2025.
Pro Forma RevPAR: Pro forma RevPAR increased 2.7 percent to $131.34 compared to the same period of 2025. Pro forma ADR increased 4.4 percent to $177.67, and pro forma occupancy decreased 1.6 percent to 73.9 percent.
Pro Forma Hotel EBITDA(1)****: Pro forma hotel EBITDA increased 2.6 percent to $135.9 million from $132.4 million.
Adjusted EBITDAre(1)****: Adjusted EBITDAre increased 3.2 percent to $99.0 million from $95.9 million in the same period of 2025.
Adjusted FFO(1)****: Adjusted FFO increased to $60.4 million, or $0.50 per diluted share, compared to $60.1 million, or $0.49 per diluted share, in the same period of 2025.

The Company's results for the three and six months ended June 30, 2026 and 2025 are as follows (in thousands, except per share amounts and metrics):

For the Three Months Ended June 30,

For the Six Months Ended June 30,

2026

2025

2026

2025

Net income (loss) attributable to common stockholders

$ 3,867

$ (1,612)

$ (6,574)

$ (6,296)

Net income (loss) per diluted share

$ 0.04

$ (0.02)

$ (0.06)

Total revenues

$ 199,019

$ 192,917

$ 384,072

$ 377,395

EBITDAre (1)

$ 66,475

$ 61,050

$ 122,241

$ 119,499

Adjusted EBITDAre (1)

$ 54,834

$ 50,919

$ 99,026

$ 95,926

FFO (1)

$ 32,438

$ 26,886

$ 53,028

$ 50,082

Adjusted FFO (1)

$ 34,883

$ 32,707

$ 60,408

$ 60,066

FFO per diluted share and unit (1)

$ 0.27

$ 0.22

$ 0.44

$ 0.40

Adjusted FFO per diluted share and unit (1)

$ 0.29

$ 0.27

$ 0.50

$ 0.49

Pro Forma (2) and Same Store (3)

RevPAR

$ 136.06

$ 129.54

$ 131.34

$ 127.92

RevPAR Growth

5.0 %

2.7 %

Hotel EBITDA

$ 72,487

$ 67,254

$ 135,861

$ 132,359

Hotel EBITDA Margin

36.4 %

35.5 %

35.4 %

35.7 %

Hotel EBITDA Margin Change

88 bps

(25) bps

(1)

See tables later in this press release for a discussion and reconciliation of Net income (loss) attributable to common stockholders to non-GAAP financial measures, including earnings before interest, taxes, depreciation, and amortization ("EBITDA"), EBITDAre, adjusted EBITDAre, funds from operations ("FFO"), FFO per diluted share and unit, adjusted FFO ("AFFO"), and AFFO per diluted share and unit, as well as a reconciliation of operating income to hotel EBITDA. See "Non-GAAP Financial Measures" at the end of this release.

(2)

Unless stated otherwise in this release, all pro forma information includes operating and financial results for 94 hotels owned as of June 30, 2026.

(3)

All same store information includes operating and financial results for 94 hotels owned as of January 1, 2025 and at all times during the three and six months ended June 30, 2026, and 2025.

Transaction Activity

Subsequent to quarter end, on July 22, 2026, we closed on the previously announced sale of the wholly-owned 103-guestroom Courtyard by Marriott, Dallas (Arlington South), TX and the 96-guestroom Residence Inn by Marriott, Dallas (Arlington South), TX for a combined selling price of $19.0 million. The combined sale price represents a 5.9 percent capitalization rate based on the net operating income for the trailing twelve months ended June 30, 2026, and after consideration of approximately $7.6 million of foregone near-term required capital expenditures. These hotels benefited from significant FIFA World Cup driven demand in June and July, during which the Company continued to own the hotels. Based on the net operating income for the trailing twelve months prior to FIFA World Cup demand, the sale price represents a 5.4 percent capitalization rate after consideration of foregone near-term required capital expenditures.

Since 2023, the Company and its affiliates have sold, or are under contract to sell, 15 hotels for a combined sales price of approximately $219 million at a blended capitalization rate of approximately 4.7 percent, inclusive of an estimated $68 million of foregone capital needs, based on the trailing twelve-month net operating income at the time of each sale. The combined RevPAR for the sold hotels was $86, which is an approximate 30.0 percent discount to the current pro forma portfolio.

Capital Markets Activity

Senior Credit Facility On June 29, 2026, the Company closed on a $650 million Senior Credit Facility to refinance the previous 2023 Senior Credit Facility. The 2026 Senior Credit Facility is comprised of a $400 million senior unsecured revolving credit facility, a $200 million senior unsecured term loan, and a $50 million senior unsecured delayed draw term loan.

The amended and restated credit agreement provides for a fully extended maturity date of June 2031. The pricing grid for the current facility ranges from 140 to 230 basis points for the Revolver and 135 to 225 basis points for the Term Loan and Delayed Draw Term Loan, each over the applicable adjusted Term SOFR rate. At the Company's current leverage, pricing on the new senior unsecured facility improved by 20 basis points, resulting in immediate interest savings and earnings accretion. Other terms of the agreement are similar to the Company's previous credit facility agreement.

Brickell Mortgage Loan On May 15, 2026, the Company, together with its joint venture partner, amended the terms of the $58 million mortgage loan to reduce the interest rate spread from 260 basis points to 230 basis points, over the applicable Term SOFR rate. Other terms of the agreement remain unchanged. The mortgage loan provides for a fully extended maturity date of May 2030.

Stock Repurchases During the second quarter, the Company repurchased approximately 49,000 shares for an aggregate purchase price of $0.2 million, or a weighted average price of approximately $4.27 per share. During the six months ended June 30, 2026, the Company repurchased 1.5 million common shares under its share repurchase program for an aggregate purchase price of $6.2 million, or a weighted average price of approximately $4.17 per share.

Since the inception of our share repurchase program in 2025, we have repurchased approximately 5.1 million shares (approximately 4.2 percent of total shares and units outstanding) at an average price of $4.26 per share. As of June 30, 2026, approximately $28.4 million remained available for repurchase under this program.

Balance Sheet Summary

On a pro rata basis as of June 30, 2026, the Company had the following outstanding indebtedness:

Outstanding debt of $1.1 billion with a weighted average interest rate of 5.46 percent. After giving effect to interest rate derivative agreements, $539.2 million, or 51 percent, of our outstanding debt had a fixed interest rate, and $525.0 million, or 49 percent, had a variable interest rate.
Unrestricted cash and cash equivalents of $29.3 million.

As of June 30, 2026, the Company's pro rata weighted average term to maturity was approximately 3.7 years, including extension options, and had only $5.0 million outstanding under its Revolving Credit Facility. Subsequent to the sale of the Courtyard by Marriott, Dallas (Arlington South), TX and the Residence Inn by Marriott, Dallas (Arlington South), TX, the Company paid off the outstanding balance of the Revolving Credit Facility.

Common and Preferred Dividend Declaration

On July 28, 2026, the Company declared a quarterly cash dividend of $0.08 per share on its common stock and per common unit of limited partnership interest in Summit Hotel OP, LP. The quarterly dividend of $0.08 per share represents an annualized dividend yield of 4.6 percent, based on the closing price of shares of the common stock on August 4, 2026.

In addition, the Board of Directors declared a quarterly cash dividend of:

$0.390625 per share on its 6.25% Series E Cumulative Redeemable Preferred Stock
$0.3671875 per share on its 5.875% Series F Cumulative Redeemable Preferred Stock
$0.328125 per unit on its 5.25% Series Z Cumulative Perpetual Preferred Units

The dividends are payable on August 31, 2026, to holders of record as of August 17, 2026.

2026 Outlook

The Company's updated outlook for the full year 2026 is based on 92 lodging assets owned as of August 5, 2026.

Our previous guidance ranges incorporated ownership of the recently sold Courtyard by Marriott, Dallas (Arlington South), TX and Residence Inn by Marriott, Dallas (Arlington South), TX hotels which were expected to contribute approximately $0.5 million of hotel EBITDA in the remaining five months of 2026. These hotels are no longer included in our updated guidance ranges.

Based on actual results for the first six months of the year and recent operating trends, the Company is increasing the low and high end of its guidance ranges for pro forma RevPAR growth, Adjusted EBITDAre, Adjusted FFO, and Adjusted FFO per share. There are no additional acquisitions, dispositions, share repurchases, or capital markets activities assumed in the Company's full year 2026 outlook.

FYE 2026 Outlook

Low

High

Variance to Prior Midpoint

% Change to Prior Midpoint

Pro Forma RevPAR Growth (1)

1.75 %

3.25 %

0.75 %

— %

Adjusted EBITDAre

$ 175,000

$ 182,000

$ 3,000

1.7 %

Adjusted FFO

$ 95,500

$ 103,000

$ 3,300

3.4 %

Adjusted FFO per share of common share and Common Units

$ 0.79

$ 0.85

$ 0.02

2.5 %

Capital Expenditures, Pro Rata

$ 55,000

$ 65,000

$ —

— %

(1)

All pro forma information includes operating and financial results for 92 lodging assets owned as of August 5, 2026 and excludes the financial results of hotels sold by the Company after January 1, 2025. Pro forma and non-GAAP financial measures are unaudited.

Second Quarter 2026 Earnings Conference Call

The Company will conduct its quarterly conference call on August 6, 2026, at 9:00 AM ET.

To access the conference call, please dial +1 (800) 715-9871 and enter passcode 8328053 when prompted.
A live webcast of the conference call can be accessed using this link. A replay of the webcast will be available in the Investors section of the Company's website, www.shpreit.com, until October 31, 2026.

Supplemental Disclosures

In conjunction with this press release, the Company has furnished a financial supplement with additional disclosures on its website. Visit www.shpreit.com for more information. The Company has no obligation to update any of the information provided to conform to actual results or changes in portfolio, capital structure, or future expectations.

About Summit Hotel Properties

Summit Hotel Properties, Inc. is a publicly traded real estate investment trust focused on owning premium-branded lodging facilities with efficient operating models primarily in the upscale segment of the lodging industry. As of August 5, 2026, the Company's portfolio consisted of 92 assets, 50 of which are wholly owned, with a total of 14,027 guestrooms located in 24 states.

For additional information, please visit the Company's website, www.shpreit.com, and follow on X at @SummitHotel_INN.

Summit Hotel Properties, Inc. Consolidated Balance Sheets (In thousands)

June 30, 2026

December 31, 2025

(Unaudited)

ASSETS

Investments in lodging property, net

$ 2,570,706

$ 2,640,367

Assets held for sale, net

18,413

11,967

Cash and cash equivalents

36,933

36,110

Restricted cash

5,531

5,102

Right-of-use assets, net

31,662

32,028

Trade receivables, net

22,213

17,347

Prepaid expenses and other

14,068

7,104

Deferred charges, net

6,064

10,051

Other assets

22,604

15,954

Total assets

$ 2,728,194

$ 2,776,030

LIABILITIES, REDEEMABLE NON-CONTROLLING INTERESTS AND EQUITY

Liabilities:

Debt, net of debt issuance costs

$ 1,371,470

$ 1,394,014

Lease liabilities, net

23,971

24,091

Accounts payable

7,876

7,537

Accrued expenses and other

83,622

76,417

Total liabilities

1,486,939

1,502,059

Redeemable non-controlling interests

50,219

Total stockholders' equity

838,947

862,155

Non-controlling interests

352,089

361,597

Total equity

1,191,036

1,223,752

Total liabilities, redeemable non-controlling interests and equity

$ 2,728,194

$ 2,776,030

Summit Hotel Properties, Inc. Consolidated Statements of Operations (Unaudited) (In thousands, except per share amounts)

For the Three Months Ended June 30,

For the Six Months Ended June 30,

2026

2025

2026

2025

Revenues:

Room

$ 176,137

$ 170,599

$ 338,701

$ 334,330

Food and beverage

11,098

11,195

22,558

22,185

Other

11,784

11,123

22,813

20,880

Total revenues

199,019

192,917

384,072

377,395

Expenses:

Room

39,352

39,166

75,699

75,298

Food and beverage

8,480

8,388

17,000

16,379

Other lodging property operating expenses

60,671

58,943

119,321

115,865

Property taxes, insurance and other

13,571

13,706

27,455

27,017

Management fees

4,366

4,411

8,587

8,906

Depreciation and amortization

36,413

37,259

73,187

74,489

Corporate general and administrative

7,415

8,280

16,260

16,851

Loss on write-down of assets

—

3,641

—

Total expenses

170,268

170,153

341,150

334,805

Gain (loss) on disposal of assets, net

134

(80)

(79)

Operating income

28,885

22,684

43,016

42,511

Other income (expense):

Interest expense

(22,068)

(20,628)

(42,518)

(40,584)

Interest income

301

547

577

Other income, net

1,187

858

2,239

2,088

Total other expense, net

(20,580)

(19,469)

(39,732)

(37,919)

Income from continuing operations before income taxes

8,305

3,215

3,284

4,592

Income tax benefit (expense)

1,430

(1,178)

538

(1,932)

Net income

9,735

2,037

3,822

2,660

Less - Income (loss) attributable to non-controlling interests

1,243

(976)

1,144

(296)

Net income attributable to Summit Hotel Properties, Inc. before preferred dividends

8,492

3,013

2,678

2,956

Less - Distributions to and accretion of redeemable non-controlling interests

(657)

(1,314)

Less - Preferred dividends

(3,968)

(7,938)

Net income (loss) attributable to common stockholders

$ 3,867

$ (1,612)

$ (6,574)

$ (6,296)

Income (loss) per common share:

Basic

$ 0.04

$ (0.02)

$ (0.06)

Diluted

$ 0.04

$ (0.02)

$ (0.06)

Weighted-average common shares outstanding:

Basic

104,768

107,633

105,241

107,820

Diluted

106,181

107,633

105,241

107,820

Summit Hotel Properties, Inc. Reconciliation of Net Income to Non-GAAP Measures - EBITDAre

(Unaudited)

(In thousands)

For the Three Months Ended June 30,

For the Six Months Ended June 30,

2026

2025

2026

2025

Net income

$ 9,735

$ 2,037

$ 3,822

$ 2,660

Depreciation and amortization

36,413

37,259

73,187

74,489

Interest expense

22,068

20,628

42,518

40,584

Interest income on cash deposits

(177)

(132)

(295)

(245)

Income tax (benefit) expense

(1,430)

1,178

(538)

1,932

EBITDA

66,609

60,970

118,694

119,420

Loss on write-down of assets

—

3,641

—

(Gain) loss on disposal of assets and other dispositions, net

(134)

(94)

EBITDAre

66,475

61,050

122,241

119,499

Amortization of key money liabilities

(164)

(129)

(293)

(258)

Equity-based compensation

1,426

2,789

3,427

4,705

Debt transaction costs

142

Non-cash lease expense, net

122

133

251

266

Casualty losses, net

294

430

622

724

Other

—

(Income) loss related to non-controlling interests in consolidated joint ventures

(776)

769

(1,944)

(514)

Adjustments related to non-controlling interests in consolidated joint ventures

(12,688)

(14,138)

(25,476)

(28,511)

Adjusted EBITDAre

$ 54,834

$ 50,919

$ 99,026

$ 95,926

Summit Hotel Properties, Inc. Reconciliation of Net Income to Non-GAAP Measures - Funds From Operations

(Unaudited)

(In thousands, except per share and unit amounts)

For the Three Months Ended June 30,

For the Six Months Ended June 30,

2026

2025

2026

2025

Net income

$ 9,735

$ 2,037

$ 3,822

$ 2,660

Preferred dividends

(3,968)

(7,938)

Distributions to and accretion of redeemable non-controlling interests

(657)

(1,314)

(Income) loss related to non-controlling interests in consolidated joint ventures

(776)

769

(1,944)

(514)

Net income (loss) applicable to common shares and Common Units

4,334

(1,819)

(7,374)

(7,106)

Real estate-related depreciation

35,861

36,694

72,075

73,357

Loss on write-down of assets

—

3,641

—

(Gain) loss on disposal of assets and other dispositions, net

(134)

(94)

FFO adjustments related to non-controlling interests in consolidated joint ventures

(7,623)

(8,069)

(15,220)

(16,248)

FFO applicable to common shares and Common Units

32,438

26,886

53,028

50,082

Amortization of deferred financing costs

1,919

1,677

3,916

3,350

Amortization of franchise fees

165

175

334

350

Amortization of intangible assets, net

224

262

486

524

Equity-based compensation

1,426

2,789

3,427

4,705

Debt transaction costs

142

Non-cash lease expense, net

122

133

251

266

Casualty losses, net

294

430

622

724

Deferred tax (benefit) expense

(1,430)

843

(963)

1,168

Other

—

AFFO adjustments related to non-controlling interests in consolidated joint ventures

(420)

(503)

(891)

(1,118)

AFFO applicable to common shares and Common Units

$ 34,883

$ 32,707

$ 60,408

$ 60,066

FFO per common share and Common Unit

$ 0.27

$ 0.22

$ 0.44

$ 0.40

AFFO per common share and Common Unit

$ 0.29

$ 0.27

$ 0.50

$ 0.49

Weighted-average diluted common shares and Common Units

121,154

123,125

121,511

123,742

Summit Hotel Properties, Inc. Reconciliation of Weighted Average Diluted Common Shares (Unaudited) (In thousands)

For the Three Months Ended June 30,

For the Six Months Ended June 30,

2026

2025

2026

2025

Weighted average common shares outstanding - diluted

106,181

107,633

105,241

107,820

Adjusted for:

Non-GAAP adjustment for restricted stock awards (1)

1,964

2,483

3,261

2,393

Non-GAAP adjustment for dilutive effects of Common Units (2)

13,009

13,529

Non-GAAP weighted diluted shares of common stock and Common Units

121,154

123,125

121,511

123,742

(1)

Adjustment reflects the difference between the total weighted-average unvested restricted time-based shares outstanding as of the reporting date and the weighted-average restricted time-based shares computed for diluted earnings per share under the treasury stock method, plus the difference between the estimated total weighted average unvested restricted performance-based shares expected to vest based on achievement of the performance measures as if the vesting date were the reporting date and the estimated weighted-average unvested restricted performance-based shares computed for diluted earnings per share under the treasury stock method.

(2)

The Company includes the outstanding Common Units issued by our Operating Partnership held by limited partners other than the Company because the Common Units are redeemable for cash or, at the Company's option, shares of the Company's common stock on a one-for-one basis.

Summit Hotel Properties, Inc. Pro Forma Hotel Operating Data (Unaudited) (In thousands, except operating statistics)

For the Three Months Ended June 30,

For the Six Months Ended June 30,

Pro Forma Operating Data: (1)

2026

2025

2026

2025

Pro forma room revenue

$ 176,137

$ 167,436

$ 338,189

$ 328,860

Pro forma other hotel operations revenue

22,882

21,806

45,276

42,153

Pro forma total revenues

199,019

189,242

383,465

371,013

Pro forma total hotel operating expenses

126,532

121,988

247,604

238,654

Pro forma hotel EBITDA

$ 72,487

$ 67,254

$ 135,861

$ 132,359

Pro forma hotel EBITDA Margin

36.4 %

35.5 %

35.4 %

35.7 %

Reconciliations of Non-GAAP financial measures to comparable GAAP financial measures

Revenue:

Total revenues

$ 199,019

$ 192,917

$ 384,072

$ 377,395

Total revenues - dispositions

—

(3,675)

(607)

(6,382)

Pro forma total revenues (1)

199,019

189,242

383,465

371,013

Hotel Operating Expenses:

Hotel operating expenses

$ 126,440

$ 124,614

$ 248,062

$ 243,465

Hotel operating expenses - dispositions

(2,626)

(458)

(4,811)

Pro forma hotel operating expense (1)

126,532

121,988

247,604

238,654

Hotel EBITDA:

Operating income

28,885

22,684

43,016

42,511

(Gain) loss on disposal of assets and other dispositions, net

(134)

(94)

Loss on write-down of assets

—

3,641

—

Corporate general and administrative

7,415

8,280

16,260

16,851

Depreciation and amortization

36,413

37,259

73,187

74,489

Hotel EBITDA

72,579

68,303

136,010

133,930

Hotel EBITDA - dispositions (2)

(92)

(1,049)

(149)

(1,571)

Pro forma hotel EBITDA (1)

$ 72,487

$ 67,254

$ 135,861

$ 132,359

(1)

Unaudited pro forma information includes operating results for 94 hotels owned as of June 30, 2026. For any hotels sold by the Company after January 1, 2025 (the "Disposed Hotels"), the Company excludes the financial results of each of the Disposed Hotels from January 1, 2025 to the date the Disposed Hotels were sold by the Company in determining pro forma total revenues and pro forma hotel operating expenses. The pro forma information is included to enable comparison of results for the current reporting period to results for the comparable period of the prior year and are not indicative of future results.

(2)

For hotels sold by the Company between January 1, 2025, and June 30, 2026, the Company has excluded the financial results of each of the Disposed Hotels for the period beginning on January 1, 2025, and ending on the date the Disposed Hotels were sold by the Company (the "Disposition Period") in determining pro forma hotel EBITDA.

Summit Hotel Properties, Inc. Pro Forma Hotel Operating Data (Unaudited) (In thousands, except operating statistics)

2025

2026

Trailing Twelve Months Ended June 30, 2026

Pro Forma Operating Data: (1)

Pro forma room revenue

$ 153,213

$ 151,612

$ 162,052

$ 176,137

$ 643,014

Pro forma other hotel operations revenue

20,316

21,497

22,394

22,882

87,089

Pro forma total revenues

173,529

173,109

184,446

199,019

730,103

Pro forma total hotel operating expenses

120,465

118,069

121,072

126,532

486,138

Pro forma hotel EBITDA

$ 53,064

$ 55,040

$ 63,374

$ 72,487

$ 243,965

Pro forma hotel EBITDA Margin

30.6 %

31.8 %

34.4 %

36.4 %

33.4 %

Pro Forma Statistics: (1)

Rooms sold

963,934

929,979

916,304

987,180

3,797,397

Rooms available

1,308,700

1,280,340

1,294,566

5,192,306

Occupancy

73.7 %

71.1 %

71.6 %

76.3 %

73.1 %

ADR

$ 158.95

$ 163.03

$ 176.85

$ 178.42

$ 169.33

RevPAR

$ 117.07

$ 115.85

$ 126.57

$ 136.06

$ 123.84

Actual Statistics:

Rooms sold

987,833

941,803

920,670

987,180

3,837,486

Rooms available

1,341,084

1,325,524

1,286,440

1,294,566

5,247,614

Occupancy

73.7 %

71.1 %

71.6 %

76.3 %

73.1 %

ADR

$ 158.25

$ 162.60

$ 176.57

$ 178.42

$ 168.90

RevPAR

$ 116.57

$ 115.53

$ 126.37

$ 136.06

$ 123.52

Reconciliations of Non-GAAP financial measures to comparable GAAP financial measures

Revenue:

Total revenues

$ 177,117

$ 174,960

$ 185,053

$ 199,019

$ 736,149

Total revenues - dispositions

(3,588)

(1,851)

(607)

—

(6,046)

Pro forma total revenues (1)

173,529

173,109

184,446

199,019

730,103

Hotel Operating Expenses:

Hotel operating expenses

122,998

119,644

121,622

126,440

490,704

Hotel operating expenses - dispositions

(2,533)

(1,575)

(550)

(4,566)

Pro forma hotel operating expenses (1)

120,465

118,069

121,072

126,532

486,138

Hotel EBITDA:

Operating income

8,583

14,591

14,131

28,885

66,190

Loss (gain) on disposal of assets, net

(6,715)

(134)

(6,752)

Loss on write-down of assets

—

1,833

3,641

—

5,474

Corporate general and administrative

7,845

8,120

8,845

7,415

32,225

Depreciation and amortization

37,634

37,487

36,774

36,413

148,308

Hotel EBITDA

54,119

55,316

63,431

72,579

245,445

Hotel EBITDA - dispositions (2)

(1,055)

(276)

(57)

(92)

(1,480)

Pro forma hotel EBITDA (1)

$ 53,064

$ 55,040

$ 63,374

$ 72,487

$ 243,965

(1)

Unaudited pro forma information includes operating results for 94 hotels owned as of June 30, 2026 as if all such hotels had been owned by the Company since July 1, 2025. For any hotels sold by the Company after July 1, 2025, the Company excludes the financial results of each of those hotels from July 1, 2025 to the date the hotels were sold by the Company in determining pro forma total revenues and pro forma hotel operating expenses. The pro forma information is included to enable comparison of results for the current reporting period to results for the comparable period of the prior year and are not indicative of future results.

(2)

For hotels sold by the Company between July 1, 2025, and June 30, 2026, the Company has excluded the financial results of each of the hotels for the period beginning on July 1, 2025, and ending on the date the hotels were sold by the Company in determining pro forma hotel EBITDA.

Summit Hotel Properties, Inc. Pro Forma and Same Store Data (Unaudited)

For the Three Months Ended June 30,

For the Six Months June 30,

2026

2025

2026

2025

Pro Forma (1) and Same Store (2)

Rooms sold

987,180

1,004,861

1,903,484

1,931,517

Rooms available

1,294,566

1,292,566

2,574,906

2,570,836

Occupancy

76.3 %

77.7 %

73.9 %

75.1 %

ADR

$ 178.42

$ 166.63

$ 177.67

$ 170.26

RevPAR

$ 136.06

$ 129.54

$ 131.34

$ 127.92

Occupancy change

(1.9) %

(1.6) %

ADR change

7.1 %

4.4 %

RevPAR change

5.0 %

2.7 %

(1)

Unaudited pro forma information includes operating results for 94 hotels owned as of June 30, 2026.

(2)

Same-store information includes operating results for 94 hotels owned by the Company as of January 1, 2025, and at all times during the three and six months ended June 30, 2026, and 2025.

Summit Hotel Properties, Inc. Reconciliation of Net Loss to Non-GAAP Measures - EBITDA for Financial Outlook

(Unaudited)

(In thousands)

FYE 2026 Outlook

Low

High

Net loss

$ (23,800)

$ (14,700)

Depreciation and amortization

146,700

Interest expense

87,200

86,700

Interest income

(500)

Income tax expense

3,600

EBITDA

213,200

221,800

Loss on write-down assets

3,600

Gain on disposal of assets and other dispositions, net

(100)

EBITDAre

216,700

225,300

Equity-based compensation

6,800

Debt transaction costs

200

Other items, net

500

Loss related to non-controlling interests in consolidated joint ventures

2,800

1,200

Adjustments related to non-controlling interests in consolidated joint ventures

(52,000)

Adjusted EBITDAre

$ 175,000

$ 182,000

Summit Hotel Properties, Inc. Reconciliation of Net Loss to Non-GAAP Measures - Funds From Operations for Financial Outlook

(Unaudited)

(In thousands except per share and unit)

FYE 2026 Outlook

Low

High

Net loss

$ (23,800)

$ (14,700)

Preferred dividends

(15,900)

Distributions to and accretion of redeemable non-controlling interests

(2,600)

Loss related to non-controlling interests in consolidated joint ventures

2,800

1,200

Net loss applicable to common shares and Common Units

(39,500)

(32,000)

Real estate-related depreciation

144,500

Loss on write-down assets

3,600

Gain on disposal of assets and other dispositions, net

(100)

FFO Adjustments related to non-controlling interests in consolidated joint ventures

(30,500)

FFO applicable to common shares and Common Units

78,000

85,500

Amortization of deferred financing costs

8,100

Amortization of franchise fees

700

Equity-based compensation

6,800

Debt transaction costs

200

Other items, net

3,600

AFFO Adjustments related to non-controlling interests in consolidated joint ventures

(1,900)

AFFO applicable to common shares and Common Units

$ 95,500

$ 103,000

Weighted average diluted common shares/Common Units for FFO and AFFO

121,300

FFO per common share and Common Unit

$ 0.64

$ 0.70

AFFO per common share and Common Unit

$ 0.79

$ 0.85

Non-GAAP Financial Measures

We disclose certain "non-GAAP financial measures," which are measures of our historical financial performance. Non-GAAP financial measures are financial measures not prescribed by Generally Accepted Accounting Principles ("GAAP"). These measures are as follows: (i) Funds From Operations ("FFO") and Adjusted Funds from Operations ("AFFO"), (ii) Earnings before Interest, Taxes, Depreciation and Amortization ("EBITDA"), Earnings before Interest, Taxes, Depreciation and Amortization for Real Estate ("EBITDAre"), Adjusted EBITDAre, and hotel EBITDA (as described below). We caution investors that amounts presented in accordance with our definitions of non-GAAP financial measures may not be comparable to similar measures disclosed by other companies, since not all companies calculate these non-GAAP financial measures in the same manner. Our non-GAAP financial measures should be considered along with, but not as alternatives to, net income (loss) as a measure of our operating performance. Our non-GAAP financial measures may include funds that may not be available for our discretionary use due to functional requirements to conserve funds for capital expenditures, property acquisitions, debt service obligations and other commitments and uncertainties. Although we believe that our non-GAAP financial measures can enhance the understanding of our financial condition and results of operations, these non-GAAP financial measures are not necessarily better indicators of any trend as compared to a comparable measure prescribed by GAAP such as net income (loss).

Funds From Operations ("FFO") and Adjusted FFO ("AFFO")

As defined by Nareit, FFO represents net income or loss (computed in accordance with GAAP), excluding preferred dividends, gains (or losses) from sales of real property, impairment losses on real estate assets, items classified by GAAP as extraordinary, the cumulative effect of changes in accounting principles, plus depreciation and amortization related to real estate assets, and adjustments for unconsolidated partnerships, and joint ventures. AFFO represents FFO excluding amortization of deferred financing costs, franchise fees, equity-based compensation expense, debt transaction costs, premiums on redemption of preferred shares, losses from net casualties, non-cash lease expense, non-cash interest income and non-cash income tax related adjustments to our deferred tax assets. Unless otherwise indicated, we present FFO and AFFO applicable to our common shares and common units. We present FFO and AFFO because we consider FFO and AFFO an important supplemental measure of our operational performance and believe it is frequently used by securities analysts, investors, and other interested parties in the evaluation of REITs, many of which present FFO and AFFO when reporting their results. FFO and AFFO are intended to exclude GAAP historical cost depreciation and amortization, which assumes that the value of real estate assets diminishes ratably over time. Historically, however, real estate values have risen or fallen with market conditions. Because FFO and AFFO exclude depreciation and amortization related to real estate assets, gains and losses from real property dispositions and impairment losses on real estate assets, FFO and AFFO provide performance measures that, when compared year over year, reflect the effect to operations from trends in occupancy, guestroom rates, operating costs, development activities and interest costs, providing perspective not immediately apparent from net income. Our computation of FFO differs slightly from the computation of Nareit-defined FFO related to the reporting of corporate depreciation and amortization expense. Our computation of FFO may also differ from the methodology for calculating FFO used by other equity REITs and, accordingly, may not be comparable to such other REITs. FFO and AFFO should not be considered as an alternative to net income (loss) (computed in accordance with GAAP) as an indicator of our liquidity, nor is it indicative of funds available to fund our cash needs, including our ability to pay dividends or make distributions. Where indicated in this release, FFO is based on our computation of FFO and not the computation of Nareit-defined FFO unless otherwise noted.

EBITDA, EBITDAre, Adjusted EBITDAre, and Hotel EBITDA

In September 2017, Nareit proposed a standardized performance measure, called EBITDAre, which is based on EBITDA and is expected to provide additional relevant information about REITs as real estate companies in support of growing interest among generalist investors. The conclusion was reached that, while dedicated REIT investors have long been accustomed to utilizing the industry's supplemental measures such as FFO and net operating income ("NOI") to evaluate the investment quality of REITs as real estate companies, it would be helpful to generalist investors for REITs as real estate companies to also present EBITDAre as a more widely known and understood supplemental measure of performance. EBITDAre is intended to be a supplemental non-GAAP performance measure that is independent of a company's capital structure and will provide a uniform basis for one measurement of the enterprise value of a company compared to other REITs.

EBITDAre, as defined by Nareit, is calculated as EBITDA, excluding: (i) loss and gains on disposition of property and (ii) asset impairments, if any. We believe EBITDAre is useful to an investor in evaluating our operating performance because it provides investors with an indication of our ability to incur and service debt, to satisfy general operating expenses, to make capital expenditures and to fund other cash needs or reinvest cash into our business. We also believe it helps investors meaningfully evaluate and compare the results of our operations from period to period by removing the effect of our asset base (primarily depreciation and amortization) from our operating results.

We make additional adjustments to EBITDAre when evaluating our performance because we believe that the exclusion of certain additional non-recurring or unusual items described below provides useful supplemental information to investors regarding our on-going operating performance. We believe that the presentation of Adjusted EBITDAre, when combined with the primary GAAP presentation of net income, is useful to an investor in evaluating our operating performance because it provides investors with an indication of our ability to incur and service debt, to satisfy general operating expenses, to make capital expenditures and to fund other cash needs or reinvest cash into our business. We also believe it helps investors meaningfully evaluate and compare the results of our operations from period to period by removing the effect of our asset base (primarily depreciation and amortization) from our operating results.

With respect to hotel EBITDA, we believe that excluding the effect of corporate-level expenses and non-cash items provides a more complete understanding of the operating results over which individual hotels and operators have direct control. We believe the property-level results provide investors with supplemental information on the on-going operational performance of our hotels and effectiveness of the third-party management companies operating our business on a property-level basis.

We caution investors that amounts presented in accordance with our definitions of EBITDA, EBITDAre, adjusted EBITDAre, and hotel EBITDA may not be comparable to similar measures disclosed by other companies, since not all companies calculate these non-GAAP measures in the same manner. EBITDA, EBITDAre, adjusted EBITDAre, and hotel EBITDA should not be considered as an alternative measure of our net income (loss) or operating performance. EBITDA, EBITDAre, adjusted EBITDAre, and hotel EBITDA may include funds that may not be available for our discretionary use due to functional requirements to conserve funds for capital expenditures and property acquisitions and other commitments and uncertainties. Although we believe that EBITDA, EBITDAre, adjusted EBITDAre, and hotel EBITDA can enhance your understanding of our financial condition and results of operations, these non-GAAP financial measures are not necessarily a better indicator of any trend as compared to a comparable GAAP measure such as net income (loss). Above, we include a quantitative reconciliation of EBITDA, EBITDAre, adjusted EBITDAre and hotel EBITDA to the most directly comparable GAAP financial performance measure, which is net income (loss) and operating income (loss).

Summary

Second Quarter Operating Income Increased 27.3% to 28.9Million;AdjustedEBITDAreIncreased7.754.8 Million Second Quarter Pro Forma RevPAR Increased 5.0%, Led by Robust ADR Growth of 7.1% Strengthened Balance Sheet with Refinanced $650 Million Senior Credit Facility and Sale of...