Successful Asset Sales and Capital Recycling
Summit Hotel Properties completed the sale of two noncore hotels generating $39 million in gross proceeds, with a blended yield of 4.3%. This continues their capital recycling strategy, having sold 12 hotels since May 2023, generating over $185 million in proceeds and eliminating $60 million in capital expenditures.
Improved Market Share and Non-Rooms Revenue Growth
RevPAR index increased by 140 basis points to 116% year-over-year, reflecting gains in both occupancy and daily rate. Non-rooms revenue grew 5.6% in Q3, driven by food and beverage sales, resort fees, and parking charges.
Proactive Balance Sheet Management
Refinanced a $400 million term loan, reducing the interest rate spread by 50 basis points. Pro forma debt has no maturities until 2028, with 75% of debt fixed after swaps, and maintained ample liquidity.
Positive Outlook for 2026
Expecting benefits from the 2026 World Cup and a lack of new hotel supply growth, enabling favorable supply-demand dynamics.