Summit Hotel Properties, Inc. (NYSE:INN) (the “Company”) today announced results for the first quarter 2014.
“In the first quarter, we continued to make solid progress on all of our key operating and strategic objectives,” said Dan Hansen, Summit’s President and CEO. “Our portfolio recorded strong gains in RevPAR, driven by growth in both average daily rates and occupancy. As a result, we generated a healthy increase in our hotel EBITDA margins, excluding the hotels under renovation, and our New Orleans hotels, which had benefited from the Super Bowl in the prior year.”
The Company’s results included the following:
|Three months ended March 31,|
|($ in thousands, except per unit and RevPAR data) *|
|Adjusted EBITDA 1||$||27,192||$||18,888|
|Adjusted FFO 1||$||16,658||$||11,848|
|FFO per diluted unit 1||$||0.17||$||0.16|
|Adjusted FFO per diluted unit 1||$||0.19||$||0.18|
Pro Forma 2
|Hotel EBITDA margin||32.7||%||33.1||%|
|Hotel EBITDA margin growth||-42 bps|
1 See tables later in this press release for a reconciliation of non-GAAP financial measures including net income (loss) to earnings before interest, taxes, depreciation and amortization (“EBITDA”), adjusted EBITDA, funds from operations (“FFO”), FFO per diluted unit, adjusted FFO, adjusted FFO per diluted unit and hotel EBITDA (hotel revenues less hotel operating expenses).² Unless stated otherwise in this release, all pro forma information includes operating results for 89 hotels owned as of March 31, 2014 as if each hotel had been owned by the Company since January 1, 2013, and excludes the 178-guestroom Hampton Inn located in Fort Smith, Ark. that was held for sale at March 31, 2014. As a result, these pro forma operating measures include operating results for certain hotels for periods prior to the Company’s ownership. First Quarter 2014 Highlights
- Same-Store RevPAR: Same-store revenue per available room (“RevPAR”) in the first quarter of 2014 grew to $80.12, an increase of 8.4 percent over the same period in 2013. Same-store average daily rate (“ADR”) grew to $110.01, an increase of 4.6 percent from the first quarter of 2013. Same-store occupancy grew by 256 basis points to 72.8 percent.
- Pro Forma RevPAR: Pro forma RevPAR in the first quarter of 2014 grew to $85.76, an increase of 7.5 percent over the same period in 2013. Pro forma ADR grew to $118.98, an increase of 4.0 percent from 2013. Pro forma occupancy grew by 233 basis points to 72.1 percent.
- Pro Forma Hotel EBITDA: Pro forma hotel EBITDA for the first quarter of 2014 was $30.0 million, an increase of 6.0 percent over the same period of 2013.
- Pro Forma Hotel EBITDA Margin: Pro forma hotel EBITDA margin in the first quarter of 2014 contracted by 42 basis points compared with the same period in 2013. Pro forma hotel EBITDA margin improved by 163 basis points when excluding the 11 properties under renovation during the quarter as well as the five New Orleans, La. properties which benefited from the Super Bowl in first quarter of 2013. 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 $27.2 million in the first quarter of 2014 from $18.9 million in the same period in 2013, an increase of $8.3 million or 44.0 percent.
- Adjusted FFO: Adjusted funds from operations (“AFFO”) for the first quarter of 2014 was $16.7 million or $0.19 per diluted unit.
- Acquisitions: The Company acquired four hotels in the first quarter of 2014 comprising 591 guestrooms, for a total purchase price of $125.7 million.
|First Quarter 2014 INN vs. STR * Results|
|INN Same-store (66)||3.6%||4.6%||8.4%|
|Overall US *||2.9%||3.8%||6.8%|
*Source: Smith Travel Research Monthly Hotel Review, Volume 14, Issue M3.