Q1 2025 Summit Hotel Properties Inc Earnings Call Transcript
Key Points
- RevPAR and same-store portfolio increased by 1.5% compared to the first quarter of last year, driven by a mix of rate and occupancy growth.
- Strong cost controls resulted in EBITDA margin contraction of less than 50 basis points, with pro forma operating expenses increasing only 1.5% year over year.
- Urban markets such as New Orleans, Tampa, San Francisco, Chicago, and Downtown Houston experienced significant RevPAR growth, with San Francisco achieving a 13.5% increase.
- The completion of the Courtyard by Marriott Oceanside, Fort Lauderdale Beach renovation is expected to drive incremental revenue and close the rate gap with competitive oceanfront properties.
- The company has a strong liquidity position with over $300 million in total liquidity and no significant debt maturities until 2027.
- March RevPAR declined 1.6% in the same-store portfolio, with a 10% decline in the qualified segment, indicating weakness in government-related demand.
- Demand softening was observed in early March, driven by weakness in government and international travel, particularly from Canada.
- The company expects April RevPAR to decline between 4% and 5% due to challenging calendar comparisons related to the solar eclipse and Easter shift.
- Second quarter RevPAR is expected to decline between 2% and 4% compared to the previous year, impacted by difficult special event comparisons.
- The company's performance is tracking toward the lower end of guidance ranges for full-year adjusted EBITDA, adjusted FFO, and adjusted FFO per share.
Good day and thank you for standing by. Welcome to the Summit Hotel Properties Inc. first-quarter 2025 earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.
I would now like to hand the conference over to your speaker today, Kevin Milota. Please go ahead.
Thank you, operator, and good morning. I'm joined by Summit Hotel Properties President and Chief Executive Officer, Jon 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 risks 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, May 1, 2025. And we undertake no duty to update them later. You can find copies of our SEC filings and earnings release, which contain
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