In This Article:
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AFFO per Share Growth: Nearly 6% for the full year 2024.
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Pro Forma RevPAR Growth: Increased 1.8% for the year.
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Pro Forma Hotel EBITDA Increase: 2% year-over-year.
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RevPAR Growth in Key Markets: Over 13% in five markets, driving a 35% increase in hotel EBITDA.
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Acquisition Activity: Acquired Hampton Inn Boston-Logan Airport and Hilton Garden Inn Tysons Corner for $96 million.
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Joint Venture Portfolio RevPAR Growth: Nearly 3%, driving 5% hotel EBITDA growth in 2024.
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Adjusted EBITDA: $192.2 million for the full year 2024.
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Adjusted FFO: $119.2 million for the full year 2024, an increase of nearly 6% versus 2023.
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AFFO per Share: Increased to $0.96 in 2024 from $0.92 in 2023.
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Fourth Quarter Pro Forma RevPAR Increase: 1.4% year-over-year.
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Fourth Quarter Adjusted EBITDA: $42.1 million.
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Fourth Quarter Adjusted FFO: $25.2 million or $0.20 per share.
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Capital Expenditures: $89.3 million on a consolidated basis for the full year 2024.
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Total Liquidity: Approximately $350 million.
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Dividend Yield: Approximately 5% based on an annualized dividend of $0.32 per share.
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2025 RevPAR Growth Guidance: 1% to 3%.
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2025 Adjusted EBITDA Guidance: $184 million to $198 million.
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2025 Adjusted FFO Guidance: $0.90 to $1 per share.
Release Date: February 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Summit Hotel Properties Inc (NYSE:INN) achieved a full year AFFO per share growth of nearly 6% in 2024.
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The company's RevPAR growth exceeded the industry average for the third consecutive year, with a 1.8% increase.
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Pro forma Hotel EBITDA increased by 2% year-over-year, despite low RevPAR growth and challenging property tax comparisons.
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Summit successfully managed operating expenses, achieving a growth of just 1.5% on a per occupied room basis.
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The company continued its disciplined acquisition strategy, acquiring two hotels with an attractive 8.8% capitalization rate and minimal near-term capital needs.
Negative Points
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RevPAR growth for the first quarter of 2025 is tracking slightly below the midpoint of the full year guidance range of 1% to 3%.
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January winter storms caused airport closures, leading to a modest decline in RevPAR for the month.
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Pro forma hotel EBITDA margins contracted by 140 basis points in the fourth quarter of 2024.
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The company faced difficult year-over-year comparisons due to property tax refunds realized in the fourth quarter of 2023.
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RevPAR for resort and small-town metro assets declined modestly in 2024, partly due to the impact of Hurricane Helene and ongoing renovations.