AUSTIN, Texas, Nov. 4, 2020 — Summit Hotel Properties, Inc. (NYSE: INN) (the “Company”), today announced results for the third quarter ended September 30, 2020.
“We were encouraged by the significant improvement in demand during the third quarter as our portfolio RevPAR more than doubled from the second quarter driven by improved short-term leisure demand and significant market share gains. Our monthly corporate cash burn rate has been reduced by nearly 70% which has significantly extended our liquidity runway as our disciplined focus on cost controls and refining of an already efficient operating model lead to improved hotel-level profitability,” said Dan Hansen, the Company’s Chairman, President and Chief Executive Officer. “We remain confident that the quality of our portfolio, the strength of our team, and the actions we are taking today position us well to resume our place as an industry leader as the headwinds related to the COVID-19 pandemic begin to abate,” commented Mr. Hansen.
Third Quarter 2020 Summary
- Net Income: Net loss attributable to common stockholders was $38.3 million, or ($0.37) per diluted share, compared with net income of $7.8 million, or $0.07 per diluted share, in the same period of 2019.
- Pro Forma RevPAR: Pro forma revenue per available room (“RevPAR”) decreased 63.5 percent to $46.83 from the same period in 2019. Pro forma average daily rate (“ADR”) decreased 34.6 percent to $103.98 compared to the same period in 2019, and pro forma occupancy decreased 44.2 percent to 45.0 percent.
- Same-Store RevPAR: Same-store RevPAR decreased 63.9 percent to $45.17 from the same period in 2019. Same-store ADR decreased 34.7 percent to $101.83 compared to the same period in 2019, and same-store occupancy decreased 44.6 percent to 44.4 percent.
- Pro Forma Hotel EBITDA: Pro forma hotel EBITDA was $5.7 million, a decrease of 89.6 percent from the same period in 2019. Pro forma hotel EBITDA margin contracted to 10.8 percent from 37.6 percent in the same period of 2019.
- Adjusted EBITDAre: Adjusted EBITDAre decreased 94.4 percent to $2.5 million from $45.2 million in the same period of 2019.
- Adjusted FFO: Adjusted FFO was ($10.8) million, or ($0.10) per diluted share, compared to $32.5 million, or $0.31 per diluted share, in the same period of 2019.
- Cash Burn Rate and Liquidity: Monthly cash burn run-rate was $4.5 million in September and liquidity was $262.5 million at the end of the third quarter, including cash on hand.