Summit Hotel Properties Reports Fourth Quarter and Full Year 2014 Results

10.9 percent Full Year Pro Forma RevPAR growth; $0.97 Full Year Adjusted FFO per share

42.2 percent Full Year Adjusted FFO growth; 36.9 percent Full Year Adjusted EBITDA growth

Full Year 2014 Highlights

  • Pro Forma RevPAR: Pro forma revenue per available room (“RevPAR”) in 2014 grew to $93.83, an increase of 10.9 percent over 2013. Pro forma average daily rate (“ADR”) grew to $123.98, an increase of 6.5 percent from 2013. Pro forma occupancy increased by 4.1 percent to 75.7 percent.
  • Pro Forma Hotel EBITDA: Pro forma hotel EBITDA in 2014 grew to $147.7 million, an increase of 13.7 percent over 2013.
  • Pro Forma Hotel EBITDA Margin: Pro forma hotel EBITDA margin in 2014 expanded by 94 basis points to 35.4 percent compared with 2013. Pro forma hotel EBITDA margin is defined as pro forma hotel EBITDA as a percentage of pro forma total revenue.
  • Same-Store RevPAR: Same-store RevPAR in 2014 grew to $84.42, an increase of 9.7 percent over 2013. Same-store ADR in 2014 grew to $111.94, an increase of 6.4 percent from 2013. Same-store occupancy increased by 3.1 percent in 2014 to 75.4 percent.
  • Adjusted EBITDA: Adjusted EBITDA increased to $127.9 million in 2014 from $93.4 million in 2013, an increase of $34.5 million or 36.9 percent.
  • Adjusted FFO: Adjusted Funds from Operations (“AFFO”) for the full year 2014 increased by 42.2 percent to $84.3 million, or $0.97 per diluted unit, which is a 20.3 percent increase from the full year 2013.
  • Net Income: Net Income attributable to common stockholders in 2014 increased to $4.3 million, or $0.05 per diluted share, compared to a net loss attributable to common stockholders in 2013 of $8.7 million, or a loss of $0.12 per diluted share.
  • Capital Investment: The Company invested $35.6 million in renovations during 2014 and added an additional 15 guestrooms to its portfolio through better utilization of existing space.
  • Acquisitions: The Company acquired six hotels in 2014 with an aggregate of 990 guestrooms for a total purchase price of $214.7 million.
  • Dispositions: The Company sold four hotels in 2014 with an aggregate of 450 guestrooms and three parcels of land for a total sales price of $19.8 million

Fourth Quarter 2014 Highlights

  • Pro Forma RevPAR: Pro forma RevPAR in the fourth quarter of 2014 grew to $88.15, an increase of 9.4 percent over the same period in 2013. Pro forma ADR grew to $123.96, an increase of 7.1 percent from the same period of 2013. Pro forma occupancy increased by 2.1 percent in the fourth quarter of 2014 to 71.1 percent.
  • Pro Forma Hotel EBITDA: Pro forma hotel EBITDA for the fourth quarter of 2014 grew to $32.5 million, an increase of 13.8 percent over the same period in 2013.
  • Pro Forma Hotel EBITDA Margin: Pro forma hotel EBITDA margin in the fourth quarter of 2014 expanded by 146 basis points to 32.9 percent compared with the same period in 2013.
  • Same-Store RevPAR: Same-store RevPAR in the fourth quarter of 2014 grew to $78.51, an increase of 10.4 percent over the same period in 2013. Same-store ADR grew to $110.52 in the fourth quarter of 2014, an increase of 7.7 percent from the fourth quarter of 2013. Same-store occupancy increased by 2.5 percent in the fourth quarter of 2014 to 71.0 percent.
  • Adjusted EBITDA: Adjusted EBITDA increased to $28.4 million in the fourth quarter of 2014 from $21.3 million in the same period in 2013, an increase of $7.0 million or 33.1 percent.
  • Adjusted FFO: AFFO for the fourth quarter of 2014 increased 45.9 percent over the same period in 2013 to $17.5 million or $0.20 per diluted unit.
  • Net Income: Net income attributable to common stockholders in the fourth quarter of 2014 increased to $0.6 million, or $0.01 per diluted share, compared to a net loss attributable to common stockholders in the same period of 2013 of $6.0 million, or a loss of $0.07 per diluted share.

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