Q4 2024 Summit Hotel Properties Inc Earnings Call Transcript
Key Points
- Summit Hotel Properties Inc (INN) achieved a full year AFFO per share growth of nearly 6% in 2024.
- The company's RevPAR growth exceeded the industry average for the third consecutive year, with a 1.8% increase.
- Pro forma Hotel EBITDA increased by 2% year-over-year, despite low RevPAR growth and challenging property tax comparisons.
- Summit successfully managed operating expenses, achieving a growth of just 1.5% on a per occupied room basis.
- The company continued its disciplined acquisition strategy, acquiring two hotels with an attractive 8.8% capitalization rate and minimal near-term capital needs.
- RevPAR growth for the first quarter of 2025 is tracking slightly below the midpoint of the full year guidance range of 1% to 3%.
- January winter storms caused airport closures, leading to a modest decline in RevPAR for the month.
- Pro forma hotel EBITDA margins contracted by 140 basis points in the fourth quarter of 2024.
- The company faced difficult year-over-year comparisons due to property tax refunds realized in the fourth quarter of 2023.
- RevPAR for resort and small-town metro assets declined modestly in 2024, partly due to the impact of Hurricane Helene and ongoing renovations.
Welcome to the Summit Hotel Properties 2024 fourth-quarter and full-year earnings conference call. I will now be passing the line to Kevin Milota, Senior Vice President of Corporate Finance.
Thank you, Michelle, and good morning. I'm joined today by Summit Hotel Properties President and Chief Executive Officer, John 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 risk 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, February 25, 2025, and we undertake no duty to update them later. You can find copies of our SEC filings and earnings release which contain reconciliations to non-GAAP financial measures referenced on this call on our website at
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