Summit Hotel Properties, Inc. (NYSE: INN) (the “Company”) today announced results for the fourth quarter and full year ended December 31, 2013.
“We are extremely pleased with the performance of our portfolio in 2013. Despite the significant revenue disruption we experienced as a result of the government shutdown in early October, our fourth quarter was particularly strong and finished well above our initial expectations. The uncertain and volatile economic conditions early in the quarter undoubtedly affected our outlook,” said Dan Hansen, Summit’s President and CEO. “We believe we are in a great position for revenue and earnings growth heading into what we consider the middle portion of the current lodging cycle. With our aggressive acquisition strategy and selective dispositions over the last several quarters, in addition to a solid balance sheet with ample liquidity, we believe our portfolio is in a prime position for outsized growth over the next several years.”
The Company’s results included the following:
|Three Months Ended December 31,||Twelve Months Ended December 31,|
|($ in thousands, except per unit and RevPAR data)|
|Adjusted EBITDA ¹||$||21,306||$||11,423||$||93,436||$||52,113|
|Adjusted FFO ¹||$||12,021||$||7,571||$||59,290||$||33,570|
|FFO per diluted unit ¹||$||0.05||$||0.11||$||0.66||$||0.69|
|Adjusted FFO per diluted unit ¹||$||0.14||$||0.15||$||0.81||$||0.82|
Pro Forma ²
|Hotel EBITDA margin||30.9%||29.3%||34.6%||33.6%|
|Hotel EBITDA margin growth||165 bps||92 bps|
¹ See tables later in this press release for a reconciliation of net income (loss) to earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted EBITDA, funds from operations (“FFO”), FFO per diluted unit, adjusted FFO and adjusted FFO per diluted unit. EBITDA, adjusted EBITDA, FFO, FFO per diluted unit, adjusted FFO and adjusted FFO per diluted unit, as well as hotel EBITDA (hotel revenues less hotel operating expenses), are non-GAAP financial measures. See further discussions of these non-GAAP measures later in this press release.² Unless expressly stated otherwise in this release, all pro forma information includes operating results for 84 hotels owned as of December 31, 2013 as if each hotel had been owned by the Company since January 1, 2012, which excludes the 213-guestroom Hyatt Place, Minneapolis, Minn. acquired on December 31, 2013, and also excludes the following three hotels located in Fort Smith, Ark. that were held for sale at December 31, 2013: the 89-guestroom AmericInn Hotel & Suites; the 57-guestroom Aspen Hotel & Suites; and the 178-guestroom Hampton Inn. As a result, these pro forma operating measures include operating results for certain hotels for periods prior to the Company’s ownership. 2013 Highlights
- Same-Store RevPAR: 2013 same-store revenue per available room (“RevPAR”) grew to $73.79, an increase of 7.0 percent over the same period in 2012. Same-store average daily rate (“ADR”) grew to $102.03, an increase of 4.9 percent from 2012. Same-store occupancy grew by 140 basis points to 72.3 percent.
- Pro Forma RevPAR: 2013 pro forma RevPAR grew to $82.25, an increase of 5.7 percent over the same period in 2012. Pro forma ADR grew to $112.23, an increase of 4.5 percent from 2012. Pro forma occupancy grew by 81 basis points to 73.3 percent.
- Pro Forma Hotel EBITDA: 2013 pro forma hotel EBITDA was $113.5 million, an increase of 8.5 percent over 2012.
- Pro Forma Hotel EBITDA Margin: Pro forma hotel EBITDA margin expanded by 92 basis points compared with the same period in 2012. Pro forma hotel EBITDA margin is defined as pro forma hotel EBITDA as a percentage of pro forma total revenue.
- Adjusted EBITDA: Adjusted EBITDA increased to $93.4 million from $52.1 million in the same period in 2012, an increase of $41.3 million or 79.3 percent. Adjusted EBITDA for the year includes $0.6 million of charges associated with the consolidation of the Company’s corporate office to Austin, Texas.
- Adjusted FFO: Adjusted funds from operations (“AFFO”) for the full year 2013 was $59.3 million or $0.81 per diluted unit.
- Acquisitions: During the twelve months of 2013, the Company acquired 19 hotels comprising 3,033 guestrooms, for a total purchase price of $475.6 million.
|Full Year 2013 INN vs. STR * Results|
|Overall US *||1.5%||3.9%||5.4%|
* STR Quarterly Hotel Review, Volume 13, Issue Q4.