Summit Hotel Q1 revenue beats on higher average daily rates

Overview

• U.S. lodging REIT's Q1 revenue beat analyst expectations

• Adjusted FFO per share fell yr/yr to $0.21 from $0.22

• Company agreed to sell two Dallas hotels for $19 mln and repurchased 1.4 mln shares

Outlook

• Summit Hotel Properties raises low end and midpoint of 2026 guidance ranges

• Company sees 2026 pro forma RevPAR growth of 0.5% to 3%

• Summit Hotel Properties expects 2026 Adjusted EBITDAre of $170 mln to $181 mln

Result Drivers

• RATE-DRIVEN REVENUE - Co said Q1 revenue growth was driven by higher average daily rates across markets and segments

• SEQUENTIAL DEMAND IMPROVEMENT - Co cited sequential improvements in demand within the quarter, with March RevPAR growth over 4%

Company press release: ID:nPnc1CNl8a

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the specialized reits peer group is "buy."

• Wall Street's median 12-month price target for Summit Hotel Properties Inc is $5.50, about 10.2% above its April 29 closing price of $4.99

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