This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Summit Hotel Properties Reports Second Quarter Results

Stocks in this article: INN

Summit Hotel Properties, Inc. (NYSE: INN) (the “Company”) today announced results for the second quarter ended June 30, 2012. The Company’s results include the following:

Second Quarter Highlights

  • Pro forma RevPAR: Pro forma RevPAR for the quarter ended June 30, 2012, increased 11.7 percent to $70.12, as a result of a 5.1 percent increase in average daily rate (“ADR”) to $95.52 and a 6.3 percent increase in occupancy to 73.4 percent.
  • Pro forma Hotel EBITDA: Pro forma Hotel EBITDA was $16.3 million for the second quarter, an increase of 16.2 percent over second quarter 2011.
  • Pro forma Hotel EBITDA Margin: Pro forma Hotel EBITDA Margin for the second quarter was 33.5 percent, an improvement of 134 basis points over the comparable period of 2011. The Company’s pro forma Hotel EBITDA margin expansion was 264 basis points when adjusting for the $0.6 million one-time hotel management fee concessions agreed to by Interstate Hotels and Resorts during second quarter 2011. Hotel EBITDA margin is defined as Hotel EBITDA as a percentage of total revenue.
  • Adjusted EBITDA: Adjusted EBITDA was $14.9 million, an increase of 35.6 percent as compared to second quarter 2011.
  • Adjusted FFO: Adjusted FFO for the second quarter 2012 was $10.1 million or $ 0.27 per diluted share/unit, an increase of 32% as compared to second quarter 2011.
  • Acquisitions: The Company acquired three hotels during the second quarter 2012, including:
    • 103 room Courtyard by Marriott – Dallas (Arlington), TX
    • 112 room Hilton Garden Inn – Nashville (Smyrna), TN
    • 83 room Hampton Inn & Suites – Nashville (Smyrna), TN
  • Dividends: The Company declared second quarter 2012 dividends of $0.1125 per common share, representing an annualized yield of approximately 5.57% based on the closing sale price of the Company’s common stock on the NYSE on August 8, 2012, and $0.5781 per share on the Company’s 9.25% Series A Cumulative Redeemable Preferred Stock.
Second Quarter Year-to-Date
2012     2011 2012     2011
($ in thousands except per share/unit data)
Total Revenue $   47,280 $   36,997 $   87,191 $   69,227
Net Income (Loss) to Common Shareholders $ (1,513 ) $ 604 $ (5,474 ) $ (7,217 )
Per diluted share/unit $ (0.04 ) $ 0.02 $ (0.15 ) $ (0.03 )
EBITDA (1) $ 11,978 $ 10,765 $ 20,895 $ 18,480
Adjusted EBITDA (1) $ 14,890 $ 10,977 $ 25,444 $ 20,005
FFO (1) $ 8,017 $ 7,460 $ 13,468 $ 6,497
Adjusted FFO (1) $ 10,099 $ 7,635 $ 16,256 $ 13,925
FFO per diluted share/unit (1) $ 0.21 $ 0.20 $ 0.36 $ 0.17
Adjusted FFO per diluted share/unit (1) $ 0.27 $ 0.20 $ 0.43 $ 0.37

Pro forma (2)

RevPAR $ 70.12 $ 62.78 $ 66.21 $ 60.44
RevPAR Growth 11.7 % 9.5 %
Hotel EBITDA $ 16,301 $ 14,027 $ 29,666 $ 25,224
Hotel EBITDA Margin 33.5 % 32.2 % 32.3 % 30.3 %
Hotel EBITDA Margin Growth (bps) 134 197
(1)   See tables later in this press release for a reconciliation to net income (loss) of earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted EBITDA, funds from operations (“FFO”), FFO per diluted share/unit, adjusted FFO and adjusted FFO per diluted share/unit. EBITDA, adjusted EBITDA, FFO, FFO per diluted share/unit, adjusted FFO and adjusted FFO per diluted share/unit, as well as hotel EBITDA, are non-GAAP financial measures. See further discussions of these non-GAAP measures and reconciliations to net income/ (loss) later in this press release.
(2) For purposes of this press release, pro forma RevPAR, pro forma RevPAR growth, pro forma Hotel EBITDA, pro forma Hotel EBITDA margin and pro forma Hotel EBITDA margin growth includes operating results for the Company’s 72 hotels owned as of June 30, 2012, as if such hotels had been owned since January 1, 2011 and exclude 3 hotels sold, including Twin Falls, ID AmericInn & Suites, Twin Falls, ID Hampton Inn, and Twin Falls, ID Holiday Inn Express & Suites, and the Missoula, MT AmericInn Hotel & Suites, which is held for sale as of June 30, 2012. As a result, these pro forma operating measures include operating results for certain hotels for periods prior to the Company’s ownership.

“We continue to be pleased with the performance of our company,” said Dan Hansen, president and CEO. “Very solid RevPAR growth for the quarter was the result of several factors, including steadily improving demand throughout many of our markets, continued muted hotel supply growth and solid performance by our hotels we rebranded during 2011. We were also successful in bringing increased revenue to the bottom line. Adjusted EBITDA growth of 35.6 percent and pro forma Hotel EBITDA margin expansion of 264 basis points demonstrates focused efforts by both our hotel management partners and our company.”

1 of 9

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,959.44 +154.64 0.87%
S&P 500 2,078.54 +7.89 0.38%
NASDAQ 4,781.4240 +16.0440 0.34%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs