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 $0.5781 per share on the Company’s 9.25% Series A Cumulative Redeemable Preferred Stock.
|($ in thousands except per share/unit data)|
|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||)|
|Adjusted EBITDA (1)||$||14,890||$||10,977||$||25,444||$||20,005|
|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)
|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.”
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