Summit Hotel Properties — Third Quarter 2026 Earnings Summary

Financial Performance:

• Net loss attributable to common stockholders was $7.7 million ($0.07 per diluted share) for the three months ended September 30, 2026, compared to a net loss of $11.3 million ($0.11 per diluted share) in the same period in 2025.
• Total revenues were $185.7 million for the three months ended September 30, 2026, compared to $177.1 million in the prior year period.
• Operating income increased 90.3% to $16.3 million for the quarter, compared to $8.6 million in the third quarter of 2025.
• Pro forma hotel EBITDA increased 14.4% to $60.4 million for the quarter, compared to $52.8 million in the prior year period, with margins expanding 191 basis points to 32.6%.
• Adjusted EBITDAre increased 11.8% to $43.9 million for the quarter, compared to $39.3 million in the prior year period.
• Adjusted FFO increased 13.9% to $24.2 million ($0.20 per diluted share) for the quarter, compared to $21.3 million ($0.17 per diluted share) in the prior year period.
• Year-to-date net loss attributable to common stockholders was $14.2 million ($0.14 per diluted share) for the nine months ended September 30, 2026, compared to $17.6 million ($0.17 per diluted share) in the same period in 2025.
• Year-to-date pro forma hotel EBITDA increased 5.9% to $195.2 million, compared to $184.4 million in the prior year period.
• Year-to-date Adjusted EBITDAre increased 5.7% to $142.9 million, compared to $135.2 million in the prior year period.
• Year-to-date Adjusted FFO increased to $84.6 million ($0.70 per diluted share), compared to $81.3 million ($0.66 per diluted share) in the prior year period.
• Pro forma RevPAR increased 7.2% to $126.17 for the quarter, compared to $117.69 in the prior year period; year-to-date pro forma RevPAR increased 4.0% to $129.91.
• Pro forma ADR increased 5.3% to $167.95 for the quarter, compared to $159.47 in the prior year period.
• Pro forma occupancy increased 1.8% to 75.1% for the quarter, compared to 73.8% in the prior year period.

Guidance and Future Outlook:

• The Company raised its full-year 2026 guidance ranges for pro forma RevPAR growth, Adjusted EBITDAre, Adjusted FFO, and Adjusted FFO per share based on actual results for the first nine months and recent operating trends.
• Updated FYE 2026 Outlook for Pro Forma RevPAR Growth: Low 3.50%, High 4.50% (Variance to Prior Midpoint: 1.50%).
• Updated FYE 2026 Outlook for Adjusted EBITDAre: Low $181.0 million, High $186.0 million (Variance to Prior Midpoint: $5.0 million, or 2.8%).
• Updated FYE 2026 Outlook for Adjusted FFO: Low $102.5 million, High $107.5 million (Variance to Prior Midpoint: $5.75 million, or 5.8%).
• Updated FYE 2026 Outlook for Adjusted FFO per share: Low $0.85, High $0.89 (Variance to Prior Midpoint: $0.05, or 6.1%).
• Updated FYE 2026 Outlook for Capital Expenditures: Low $55.0 million, High $65.0 million.
• The outlook assumes no additional acquisitions, dispositions, share repurchases, or capital markets activities.

Business Segments and Product Lines:

• The portfolio consists of 92 lodging assets with 14,027 guestrooms located in 24 states as of November 3, 2026.
• Demand growth was broad-based, particularly midweek in urban markets, driven by the accelerating recovery in business transient travel and ongoing strength in group demand.
• In July 2026, the Company completed the sale of two hotels in Dallas (Arlington South), TX (Courtyard by Marriott and Residence Inn by Marriott) for a combined price of $19.0 million.
• Since 2023, the Company has sold 15 hotels for a combined sales price of approximately $219.0 million.

Market and Competitive Landscape:

• The Company's outlook for the industry broadly and Summit specifically continues to improve.
• The sold hotels had a combined RevPAR of $86, representing an approximate 30 percent discount to the current pro forma portfolio.

Risks and Challenges:

• The press release references standard forward-looking statement risks including the state of the U.S. economy, supply and demand in the hotel industry, and other factors detailed in SEC filings, but does not list specific current challenges or risks unique to the quarter beyond standard disclosures.

Management Commentary and Tone:

• Jonathan Stanner, President and CEO, stated the Company delivered "outstanding third quarter results that exceeded expectations" with operating fundamentals accelerating meaningfully.
• Management noted the teams capitalized on a favorable operating backdrop to drive exceptional profitability growth.
• Management highlighted the improvement in the outlook for the industry and the Company specifically.

Other Key Points:

• Dividend Declaration: On October 27, 2026, the Board declared a quarterly cash dividend of $0.08 per share on common stock and common units, payable November 30, 2026.
• Preferred Dividends: The Board also declared quarterly dividends on Series E ($0.390625), Series F ($0.3671875), and Series Z ($0.328125 per unit) preferred stock/units, payable November 30, 2026.
• Debt Refinancing: In September 2026, the Company amended its $200 Million Term Loan Facility and $275 Million Delayed Draw Term Loan Facility, resulting in an initial 20 basis point reduction in interest rates and an additional 15 basis point reduction due to leverage ratio improvements.
• Interest Savings: The debt amendments are expected to generate annual interest expense savings of approximately $2.4 million.
• Balance Sheet Strength: As of September 30, 2026, the Company had pro rata outstanding debt of $1.1 billion with a weighted average interest rate of 5.50%, total pro rata liquidity of approximately $350 million, and no debt maturities until 2028.
• Extension Options: The maturity date for the $200 Million Term Loan Facility was extended to February 2028, with an option to extend for up to two additional six-month periods.