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Summit Hotel Properties, Inc. announced results for the second quarter ended June 30, 2020<\/span>.<\/p>\n “The lodging industry experienced an unprecedented decline in demand during the second quarter as the spread of COVID-19 forced widespread shutdowns and eliminated the majority of non-essential travel. We were pleased with our ability to quickly adapt and navigate through this very challenging operating environment, allowing us to keep nearly all of our hotels open and gain considerable market share during the quarter. Occupancy and RevPAR levels improved sequentially throughout the quarter driven predominately by weekend leisure demand, particularly outside of core urban markets,” said Dan Hansen<\/span>, the Company’s Chairman, President and Chief Executive Officer. “As RevPAR trends have improved from trough levels in April, our monthly cash burn rate has been reduced by nearly 40%, and with approximately $270 million<\/span> of liquidity, we have 38 months of runway at current RevPAR levels. Despite the effects of the current pandemic, we remain bullish on the prospects of our business and believe our actions in response to the crisis position us well to take advantage of opportunities as we enter the recovery,” commented Mr. Hansen.<\/p>\n Second Quarter 2020<\/strong> Summary<\/strong><\/p>\n The Company’s results for the three and six months ended June 30, 2020<\/span> and 2019 are as follows (in thousands, except per share amounts):<\/p>\n For the Three Months Ended For the Six Months Ended 2020<\/strong><\/span><\/p>\n<\/td>\n 2019<\/strong><\/span><\/p>\n<\/td>\n 2020<\/strong><\/span><\/p>\n<\/td>\n 2019<\/strong><\/span><\/p>\n<\/td>\n<\/tr>\n (unaudited)<\/em><\/span><\/p>\n<\/td>\n<\/tr>\n Net (loss) income attributable to $<\/span><\/p>\n<\/td>\n (54,126)<\/span><\/p>\n<\/td>\n $ 45,248<\/span><\/p>\n<\/td>\n $<\/span><\/p>\n<\/td>\n (73,157)<\/span><\/p>\n<\/td>\n $ 54,416<\/span><\/p>\n<\/td>\n<\/tr>\n Net (loss) income per diluted share<\/span><\/p>\n<\/td>\n $<\/span><\/p>\n<\/td>\n (0.52)<\/span><\/p>\n<\/td>\n $ 0.43<\/span><\/p>\n<\/td>\n $<\/span><\/p>\n<\/td>\n (0.70)<\/span><\/p>\n<\/td>\n $ 0.52<\/span><\/p>\n<\/td>\n<\/tr>\n Total revenues<\/span><\/p>\n<\/td>\n $<\/span><\/p>\n<\/td>\n 25,436<\/span><\/p>\n<\/td>\n $ 142,930<\/span><\/p>\n<\/td>\n $<\/span><\/p>\n<\/td>\n 133,821<\/span><\/p>\n<\/td>\n $ 281,882<\/span><\/p>\n<\/td>\n<\/tr>\n EBITDAre<\/em> (1)<\/sup><\/span><\/p>\n<\/td>\n $<\/span><\/p>\n<\/td>\n (14,503)<\/span><\/p>\n<\/td>\n $ 49,409<\/span><\/p>\n<\/td>\n $<\/span><\/p>\n<\/td>\n 12,601<\/span><\/p>\n<\/td>\n $ 94,812<\/span><\/p>\n<\/td>\n<\/tr>\n Adjusted EBITDAre<\/em> (1)<\/sup><\/span><\/p>\n<\/td>\n $<\/span><\/p>\n<\/td>\n (12,791)<\/span><\/p>\n<\/td>\n $ 52,420<\/span><\/p>\n<\/td>\n $<\/span><\/p>\n<\/td>\n 13,959<\/span><\/p>\n<\/td>\n $ 99,145<\/span><\/p>\n<\/td>\n<\/tr>\n FFO (1)<\/sup><\/span><\/p>\n<\/td>\n $<\/span><\/p>\n<\/td>\n (28,273)<\/span><\/p>\n<\/td>\n $ 35,202<\/span><\/p>\n<\/td>\n $<\/span><\/p>\n<\/td>\n (18,475)<\/span><\/p>\n<\/td>\n $ 65,652<\/span><\/p>\n<\/td>\n<\/tr>\n Adjusted FFO (1)<\/sup><\/span><\/p>\n<\/td>\n $<\/span><\/p>\n<\/td>\n (25,922)<\/span><\/p>\n<\/td>\n $ 38,648<\/span><\/p>\n<\/td>\n $<\/span><\/p>\n<\/td>\n (12,653)<\/span><\/p>\n<\/td>\n $ 70,912<\/span><\/p>\n<\/td>\n<\/tr>\n FFO per diluted share and unit (1,2)<\/sup><\/span><\/p>\n<\/td>\n $<\/span><\/p>\n<\/td>\n (0.27)<\/span><\/p>\n<\/td>\n $ 0.34<\/span><\/p>\n<\/td>\n $<\/span><\/p>\n<\/td>\n (0.18)<\/span><\/p>\n<\/td>\n $ 0.63<\/span><\/p>\n<\/td>\n<\/tr>\n Adjusted FFO per diluted share and unit (1,2)<\/sup><\/span><\/p>\n<\/td>\n $<\/span><\/p>\n<\/td>\n (0.25)<\/span><\/p>\n<\/td>\n $ 0.37<\/span><\/p>\n<\/td>\n $<\/span><\/p>\n<\/td>\n (0.12)<\/span><\/p>\n<\/td>\n $ 0.68<\/span><\/p>\n<\/td>\n<\/tr>\n Pro Forma (3)<\/sup><\/span><\/p>\n<\/td>\n RevPAR<\/span><\/p>\n<\/td>\n $<\/span><\/p>\n<\/td>\n 23.20<\/span><\/p>\n<\/td>\n $ 136.65<\/span><\/p>\n<\/td>\n $<\/span><\/p>\n<\/td>\n 59.59<\/span><\/p>\n<\/td>\n $ 132.59<\/span><\/p>\n<\/td>\n<\/tr>\n RevPAR change<\/span><\/p>\n<\/td>\n -83.0%<\/span><\/p>\n<\/td>\n -55.1%<\/span><\/p>\n<\/td>\n Hotel EBITDA<\/span><\/p>\n<\/td>\n $<\/span><\/p>\n<\/td>\n (10,009)<\/span><\/p>\n<\/td>\n $ 60,905<\/span><\/p>\n<\/td>\n $<\/span><\/p>\n<\/td>\n 19,716<\/span><\/p>\n<\/td>\n $ 114,713<\/span><\/p>\n<\/td>\n<\/tr>\n Hotel EBITDA margin<\/span><\/p>\n<\/td>\n N\/A<\/span><\/p>\n<\/td>\n 40.0%<\/span><\/p>\n<\/td>\n 14.7%<\/span><\/p>\n<\/td>\n 39.0%<\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n (1) <\/sup><\/em><\/span><\/p>\n<\/td>\n See tables later in this press release for a discussion and reconciliation of net income to non-GAAP financial measures, including earnings before interest, taxes, depreciation and amortization (“EBITDA”), EBITDAre, adjusted EBITDAre, funds from operations (“FFO”), FFO per diluted share and unit, adjusted FFO (“AFFO”), and AFFO per diluted share and unit, as well as a reconciliation of operating income to hotel EBITDA. See “Non-GAAP Financial Measures” at the end of this release.<\/em><\/span><\/p>\n<\/td>\n<\/tr>\n (2) <\/sup><\/em><\/span><\/p>\n<\/td>\n Amounts are based on 104,331,000 weighted average diluted common shares and units and 104,255,000 weighted average diluted common shares and units for the three months ended June 30, 2020, and 2019, respectively, and 104,265,000 weighted average diluted common shares and units and 104,261,000 weighted average diluted common shares and units for the six months ended June 30, 2020, and 2019, respectively. The Company includes the outstanding common units of limited partnership interests (“OP Units”) in Summit Hotel OP, LP, the Company’s operating partnership, held by limited partners other than the Company in the determination of weighted average diluted common shares and units because the OP Units are redeemable for cash or, at the Company’s option, shares of the Company’s common stock on a one-for-one basis.<\/em><\/span><\/p>\n<\/td>\n<\/tr>\n (3) <\/sup><\/em><\/span><\/p>\n<\/td>\n Unless stated otherwise in this release, all pro forma information includes operating and financial results for 72 hotels owned as of June 30, 2020, as if each hotel had been owned by the Company since January 1, 2019 and remained open for the entirety of the measurement period. As a result, all pro forma information includes operating and financial results for hotels acquired since January 1, 2019, which includes periods prior to the Company’s ownership. Pro forma and non-GAAP financial measures are unaudited.<\/em><\/span><\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<\/div>\n<\/div>\n<\/div>\n Year-to-Date 2020<\/strong> Summary<\/strong><\/p>\n Capital Improvements<\/strong><\/p>\n The Company invested $4.8 million<\/span> and $15.9 million<\/span> in capital improvements during the three and six months ended June 30, 2020<\/span> and anticipates investing a total of approximately $25.0 million<\/span> in capital improvements on a consolidated basis across its portfolio during 2020.<\/p>\n Capital Markets & Balance Sheet<\/strong><\/p>\n At June 30, 2020<\/span>, inclusive of its pro rata share of the Joint Venture credit facility, the Company had the following:<\/p>\n\n
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