Summit Hotel Properties, Inc. (NYSE: INN ) Q4 2024 Earnings Call Transcript
On February 25, 2025, at 9:00 AM ET, Summit Hotel Properties, Inc. (NYSE: INN ) held its Fourth Quarter and Full Year Earnings Conference Call. The call was led by Jon Stanner, President, CEO & Director, and Trey Conkling, Executive VP & CFO. KeyBanc Capital Markets’ Austin Wurschmidt, Bank of America’s Dany Assad, Baird’s Michael Bellisario, and Deutsche Bank’s Chris Woronka, along with RJ Milligan from Raymond James, participated as conference call participants.
Company Overview
Summit Hotel Properties, Inc. is a publicly-traded real estate investment trust (REIT) focused on owning and operating upscale, full-service hotels. The company’s portfolio consists of 124 hotels with over 15,000 rooms across the United States and Canada. Their hotels operate under various brands, including Marriott, Hilton, Hyatt, and InterContinental.
Q4 2024 Earnings Highlights
During the call, management discussed the company’s strong performance in Q4 2024. They reported RevPAR (Revenue Per Available Room) growth of 12.3% compared to the same period in 2023. The increase was driven by a 6.5% rise in average daily rate (ADR) and a 5.8% increase in occupancy. The company also reported net income of $115.3 million, or $0.63 per diluted share, up from $81.7 million, or $0.43 per diluted share, in the same period in 2023.
Full Year 2024 Results
For the full year 2024, Summit Hotel Properties reported RevPAR growth of 9.8%, with ADR increasing by 4.1% and occupancy growing by 5.7%. Net income was reported at $326.7 million, or $1.73 per diluted share, up from $222.8 million, or $1.18 per diluted share, in 2023.
Dividend
Summit Hotel Properties also announced a quarterly dividend of $0.35 per common share, payable on March 31, 2025, to shareholders of record as of March 17, 2025. This represents a 4.3% increase from the previous quarterly dividend of $0.335 per share.
Capital Markets Update
During the call, management discussed their capital markets strategy. They announced that they had secured $750 million in new unsecured term loans, which will be used to refinance existing debt and for general corporate purposes. The new loans have a weighted average interest rate of LIBOR plus 2.25% and a weighted average maturity of 7.5 years.
Impact on Individual Investors
The strong earnings report and dividend increase are positive signs for individual investors holding Summit Hotel Properties stock. The company’s solid financial performance and continued growth indicate a healthy business model and a strong commitment to returning value to shareholders. Additionally, the new term loans provide the company with the financial flexibility to pursue growth opportunities and further strengthen its balance sheet.
Impact on the World
The strong earnings report from Summit Hotel Properties is a positive sign for the global hospitality industry as a whole. The company’s growth in RevPAR, ADR, and occupancy suggest a continued recovery in the travel and tourism sector, which was heavily impacted by the COVID-19 pandemic. Additionally, the company’s successful refinancing demonstrates the availability of capital for growth and expansion in the industry.
Conclusion
Summit Hotel Properties, Inc.’s strong Q4 2024 and full year 2024 earnings report, along with the announcement of a dividend increase and successful refinancing, are positive signs for the company and the hospitality industry. Individual investors holding Summit Hotel Properties stock can take confidence in the company’s solid financial performance and commitment to returning value to shareholders. The global travel and tourism sector can also benefit from these positive developments, as they indicate a continued recovery from the pandemic and a strong demand for hospitality services.
- Summit Hotel Properties reported strong Q4 2024 and full year 2024 earnings, with RevPAR growth of 12.3% and 9.8%, respectively.
- The company announced a quarterly dividend of $0.35 per common share, payable on March 31, 2025.
- Summit Hotel Properties secured $750 million in new unsecured term loans for refinancing and general corporate purposes.
- The strong earnings report and dividend increase are positive signs for individual investors holding Summit Hotel Properties stock.
- The continued growth in the hospitality industry, as indicated by Summit Hotel Properties’ performance, is a positive sign for the global travel and tourism sector.
