Q3 2024 Summit Hotel Properties Inc Earnings Call Transcript
Key Points
- Summit Hotel Properties Inc (INN) reported its third consecutive quarter of adjusted AFFO growth, indicating strong financial performance.
- The company experienced RevPAR growth in urban and suburban hotels, with increases of 1.3% and 3.9% respectively, driven by strong group demand and improving business transient trends.
- Summit Hotel Properties Inc (INN) successfully sold 10 hotels over the last 18 months, generating nearly $150 million in gross proceeds, which helped reduce corporate leverage by approximately one turn.
- The company has a well-positioned balance sheet with over $400 million in liquidity and no significant debt maturities until 2026, providing financial stability.
- Summit Hotel Properties Inc (INN) has seen improvement in employee retention and a reduction in contract labor costs, contributing to a more efficient cost structure.
- The company faced a challenging quarter due to industry-wide issues and specific market challenges, including the impact of hurricanes, which displaced nearly $400,000 in revenue.
- September RevPAR declined by 3% year over year, driven by a reduction in occupancy and disruptions from hurricanes.
- San Francisco remains a negative outlier for the company, dealing with a weaker convention calendar and limited office attendance.
- The company's third quarter RevPAR for resort and small-town metro assets declined year over year due to normalization of leisure demand patterns.
- Summit Hotel Properties Inc (INN) experienced a 3% decrease in pro forma hotel EBITDA for the third quarter compared to the previous year, partly due to hurricane disruptions.
Good day, and thank you for standing by. Welcome to the Summit Hotel Properties Q3 2024 earnings conference call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question-and-answer session. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Adam Widow, [EVP] of Corporate Development. Please go ahead.
Thank you and good morning. I am joined today by Summit Hotel Properties' President and Chief Executive Officer, Jon Stanner; and Executive Vice President and Chief Financial Officer, Trey Conkling.
Please note that many of our comments today are considered forward-looking statements as defined by Federal Securities laws. These statements are subject to risks and uncertainties both known and unknown as described in our sec filings, forward-looking statements that we make today are effective only as of today,
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