Summit Hotel Properties, Inc. (NYSE: INN) has released its third-quarter 2024 financial results, highlighting a 4.0% year-over-year increase in Adjusted Funds from Operations (FFO) despite moderate revenue gains. This growth was bolstered by Summit’s capital recycling strategy, allowing the company to adapt effectively to disruptions, including September’s impact from Hurricane Helene across key markets.
The company posted a net loss of $4.3 million, marking a slight improvement compared to the same period last year. Pro forma hotel EBITDA saw a modest decline of 2.9%, totaling $59.7 million, accompanied by a minor reduction in hotel EBITDA margins. Summit also advanced its asset disposition strategy by selling the Four Points San Francisco Airport property for $17.7 million post-quarter-end. This sale contributes to a broader trend for Summit, which has offloaded 10 hotels over the past 18 months, generating $150 million and substantially strengthening its leverage.
Jonathan P. Stanner, Summit’s President and CEO, noted that these strategic actions are designed to maintain a high-quality portfolio and support sustainable growth. By selling underperforming assets, the company aims to reduce immediate capital needs, improve cash flow, and position itself for future expansion opportunities.
Summit has also adjusted its 2024 outlook to account for the potential effects of recent hurricanes and a tempered RevPAR growth environment.
