Earnings

Summit Hotel Raises Full-Year 2026 Outlook Again

The Tip Desk · November 10, 2026 · 3 min read

Pro forma RevPAR growth reached 7.2% in the third quarter as the company lifted Adjusted FFO guidance to $102.5 million to $107.5 million.

Summit Hotel Properties, Inc. (INN), a publicly traded REIT focused on premium-branded lodging, reported that pro forma RevPAR growth accelerated to 7.2% in the third quarter, after 5.0% in the second quarter and 0.2% in the first, and raised its full-year 2026 outlook for a second consecutive quarter.

Pro forma RevPAR was $126.17, up from $117.69 a year earlier. Pro forma ADR rose 5.3% to $167.95 and occupancy rose 1.8% to 75.1%. President and Chief Executive Officer Jonathan Stanner said the increase was driven by broad-based demand growth and pricing power, particularly midweek in urban markets, with growth led by an accelerating recovery in business transient travel and ongoing group demand.

Profitability followed the same trajectory. Pro forma hotel EBITDA increased 14.4% to $60.4 million from $52.8 million a year earlier, after 7.8% growth in the second quarter and a decline in the first. Hotel EBITDA margin expanded 191 basis points to 32.6%. Adjusted EBITDAre rose 11.8% to $43.9 million from $39.3 million. Adjusted FFO increased 13.9% to $24.2 million, or $0.20 a share, from $21.3 million, or $0.17 a share. Operating income increased 90.3% to $16.3 million from $8.6 million. Net loss attributable to common stockholders narrowed to $7.7 million, or $0.07 a share, from $11.3 million, or $0.11 a share. Total revenues were $185.7 million, including $163.2 million of room revenue.

The company said it is increasing the low and high ends of its full-year 2026 ranges for pro forma RevPAR growth, Adjusted EBITDAre, Adjusted FFO, and Adjusted FFO per share, based on actual results for the first nine months and recent operating trends. The updated outlook is 3.50% to 4.50% for pro forma RevPAR growth, $181.0 million to $186.0 million for Adjusted EBITDAre, $102.5 million to $107.5 million for Adjusted FFO, and $0.85 to $0.89 for Adjusted FFO per share. No additional acquisitions, dispositions, share repurchases, or capital-markets activities are assumed. Stanner said the raise reflected strong third-quarter results and increased expectations for the fourth quarter.

In July the company sold the Courtyard by Marriott and Residence Inn by Marriott in Dallas (Arlington South) for a combined $19.0 million, a 5.9% capitalization rate on trailing-twelve-month net operating income through June 30, 2026, after about $7.6 million of foregone near-term capital expenditures. Since 2023 it and its affiliates have sold 15 hotels for about $219.0 million at a blended 4.7% cap rate.

In September it amended its $200 million term loan and $275 million delayed-draw term loan to conform pricing with its $650 million senior credit facility, cutting the applicable rate 20 basis points initially and a further 15 basis points on $675 million of term loans, for about $2.4 million of expected annual interest savings. The $200 million term loan maturity was extended to February 2028. As of September 30, 2026, pro rata debt was $1.1 billion at a 5.50% weighted average rate, with about $350 million of liquidity and no debt maturities until 2028. The company declared a $0.08 quarterly common dividend.

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