Key Points – Summit Hotel Properties exceeded its second-quarter expectations, with RevPAR up 5%, hotel EBITDA up 7.8%, adjusted EBITDAre up 7.7% to $54.8 million and adjusted FFO up 6.7% to $34.9 million, or $0.29 per share. – Growth was driven by stronger urban,…
siness-transient and group demand, with urban RevPAR rising 8% and higher-rated customer segments posting notable gains. World Cup activity boosted second-quarter RevPAR by approximately 100 basis points, but management said demand was broad-based across non-host markets as well. – The company raised its full-year outlook for RevPAR, adjusted EBITDAre and adjusted FFO, while strengthening its balance sheet through debt refinancing and continuing portfolio sales
New guidance calls for adjusted EBITDAre of $175 million to $182 million and adjusted FFO per share of $0.79 to $0.85. – 3 REITs With Big Dividend Growth and Sustainable Payouts Summit Hotel Properties (NYSE:INN) reported second-quarter results that exceeded its expectations, citing broad-based demand growth, stronger pricing and continued expense controls. The company raised its full-year guidance for RevPAR, adjusted EBITDAre and adjusted funds from operations after reporting improving trends through July. President and Chief Executive Officer Jon Stanner said pro forma revenue per available room, or RevPAR, rose 5% year over year in the second quarter, led by a 7.1% increase in average daily rate.
Pro forma hotel EBITDA increased 7.8%, producing nearly 90 basis points of margin expansion. – How to Invest in Hotel Stocks Adjusted EBITDAre increased 7.7% to $54.8 million, while adjusted FFO rose 6.7% to $34.9 million, or $0.29 per share. Urban, Higher-Rate Segments Drive Growth Stanner said business-transient and group demand strengthened during the quarter, especially in midweek periods and urban markets. Average daily rate in Summit’s urban portfolio rose 9%, contributing to an 8% increase in urban RevPAR and a 12% increase in hotel EBITDA. -…